Restore Your Credit Rating After Bankruptcy
Have you been through bankruptcy? Are you thinking about it?
If your answer is yes then you will be worried about restoring your credit rating after bankruptcy.
Believe me, it can be done. You will need to work hard at it though. I guess you'll have to change your attitude towards debt and treat it with the respect that it deserves.
What you need to work towards is to rebuild your credit rating. It may surprise you but this can be acheived in a relatively short space of time.
Consider this scenario:
A loan company has received two applications for a car loan. Both applicants live in the same area, do similar jobs, are in the same age bracket. There is though, one major difference; applicant 1 has a huge debt load and is struggling to keep up to date with it (sound familiar?) and applicant 2, who filed bankruptcy 12 months ago, has a small debt load, which he has kept under control, for the last 10 months. You guessed it, the lender would be more inclined to favour applicant number 2.
Make timely payments, maintain a small, manageable debt and treat credit with the respect it deserves and pretty soon you will be restoring your credit after bankruptcy.
Click Here! for some great advice on restoring your credit after bankruptcy
If your answer is yes then you will be worried about restoring your credit rating after bankruptcy.
Believe me, it can be done. You will need to work hard at it though. I guess you'll have to change your attitude towards debt and treat it with the respect that it deserves.
What you need to work towards is to rebuild your credit rating. It may surprise you but this can be acheived in a relatively short space of time.
Consider this scenario:
A loan company has received two applications for a car loan. Both applicants live in the same area, do similar jobs, are in the same age bracket. There is though, one major difference; applicant 1 has a huge debt load and is struggling to keep up to date with it (sound familiar?) and applicant 2, who filed bankruptcy 12 months ago, has a small debt load, which he has kept under control, for the last 10 months. You guessed it, the lender would be more inclined to favour applicant number 2.
Make timely payments, maintain a small, manageable debt and treat credit with the respect it deserves and pretty soon you will be restoring your credit after bankruptcy.
Click Here! for some great advice on restoring your credit after bankruptcy
Apply For an Unsecured Credit Card
and Ensure That Your Credit Report is Up-To-Date
So you've filed bankruptcy.
You're at rock-bottom.
You need to realize that there is a way out of this mess.
You will find that even the recently bankrupt have access to credit. One of the easiest ways to start restoring your credit after bankruptcy is to apply for a secured credit card.
This is how it works;
You pay between 100% and 200% of the required credit limit into a deposit account. The credit card is then secured to the money in your deposit account. That way the banks get their security and you get a foot back into the "credit world".
Due to the fact that the bank's risk is virtually zero, secured credit cards will normally have a lower interest rate their unsecured counterparts.
The best way to use credit cards is not to "max out" the limit every month. The credit institutions frown on such behaviour - in their eyes it shows a lender who is struggling to handle his debt. Use your card often for lots of small transactions and pay the full balance back every month. By taking this approach you will start to improve your habits financially and the credit institutions will begin to acknowledge your efforts and your score will start to improve.
While we're on the subject of credit institutions, it would be a good idea to regularly check your experian credit report. The reason being that it's not unusual for these reports to contain out-of-date & harmful information. Make sure there are no old credit agreements still showing as being open with outstanding debt. If you do find any such errors, it is vital you get them fixed.
As i mentioned before, the importance of keeping yourself in the "credit world" can't be underestimated. Don't take credit for granted though - respect it. Being self disciplined is a must, get into good financial habits, don't miss any payments and pay them off in full.
You will soon start to notice an improved credit score and restoring your credit after bankruptcy will start to become a reality.
For some great advice on restoring your credit after bankruptcy, Click Here!
You're at rock-bottom.
You need to realize that there is a way out of this mess.
You will find that even the recently bankrupt have access to credit. One of the easiest ways to start restoring your credit after bankruptcy is to apply for a secured credit card.
This is how it works;
You pay between 100% and 200% of the required credit limit into a deposit account. The credit card is then secured to the money in your deposit account. That way the banks get their security and you get a foot back into the "credit world".
Due to the fact that the bank's risk is virtually zero, secured credit cards will normally have a lower interest rate their unsecured counterparts.
The best way to use credit cards is not to "max out" the limit every month. The credit institutions frown on such behaviour - in their eyes it shows a lender who is struggling to handle his debt. Use your card often for lots of small transactions and pay the full balance back every month. By taking this approach you will start to improve your habits financially and the credit institutions will begin to acknowledge your efforts and your score will start to improve.
While we're on the subject of credit institutions, it would be a good idea to regularly check your experian credit report. The reason being that it's not unusual for these reports to contain out-of-date & harmful information. Make sure there are no old credit agreements still showing as being open with outstanding debt. If you do find any such errors, it is vital you get them fixed.
As i mentioned before, the importance of keeping yourself in the "credit world" can't be underestimated. Don't take credit for granted though - respect it. Being self disciplined is a must, get into good financial habits, don't miss any payments and pay them off in full.
You will soon start to notice an improved credit score and restoring your credit after bankruptcy will start to become a reality.
For some great advice on restoring your credit after bankruptcy, Click Here!
More About The Author
- Cliff Truss Freelance Article Writer
- For more information about Cliff Truss, visit the link above.
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e-tastic
Dec 20, 2009 @ 5:13 pm | delete
- Hi,
Please feel free to add your comments or questions, especially If there is something specific that you want to know.
Thanks,
e-tastic
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Books about Bankruptcy on Amazon
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by e-tastic
e-tastic (otherwise known as Cliff Truss) is a freelance article writer who lives in London, England with his wife and 2 sons.
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