How to Improve Your Credit After Bankruptcy

As you may know already, Chapters 7, 11, and 12 will remain on one’s credit report for ten years from the filing date. A Chapter 13 bankruptcy is reported for seven years from the filing date. Accounts included in a bankruptcy will remain for seven years from the date reported as included in the bankruptcy. Your ability to re-establish your credit after filing bankruptcy is better now than it has ever been. After your bankruptcy is discharged, you will start receiving a great number of solicitations offering to finance homes, vehicles and credit cards.

These are some of the following steps you should take:

1. Examine Your Credit Report – The very first thing you should do is obtain a copy of your credit reports and make sure there are no errors or inaccuracies in you report.

2. Pay Your Bills On Time, Every Time – Pay your bills and rent on time all the time. Remember your payment history is 35% of your credit score.

3. Bank Account – Start with a checking or savings account. Lenders may use this to determine if you are currently being responsible with finances.

4. Build With Store Credit – Apply for store credit cards or gas card. Use it for items you would normally pay cash for, this way it keeps your monthly balances within reason which makes it easier to pay off each month.

5. Secured Credit Cards – Apply for a secured card where you can deposit cash and charge against it. Pay advances back over two months so that they will be reflected as positive marks on your credit report.

6. Friends Or Family – Find a friend or relative that is willing to co-sign for you on a loan or add you to their credit file.

7. Look For The Right Lenders – Search out lenders that are more apt to consider to help you even with a bankruptcy.

8. Buying A Car – If you buy a car, make sure it’s a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.

9. Stay Away From Payday Loans – Payday loans that are at high interest rates they are a “bad credit” trap.

10. Be Proactive – Often times writing a letter to each of the credit bureaus explaining the circumstances that initially lead you filing for bankruptcy.

One of the most important lesson to learn in dealing with the challenges of a bankruptcy is to be patient. Understand that the path to bankruptcy did not happen overnight. And neither will the path to improving your credit. By following the tips above, the path to improved credit score is very possible. If you adhere to these 10 tips you will be able to improve your credit score and your life.

Confused By Bankruptcy? These Tips Can Help!

Many negative emotions are related to filing bankruptcy. People going through bankruptcy worry about living in debt while trying to survive. As the following article explains, options do exist for those facing financial difficulty.

Protect your house. It isn’t inevitable that you will lose your house when you file for bankruptcy. You could keep your home; it depends on your home’s value or if a second mortgage is on your home. Otherwise, try looking into house exemptions that may let you remain in the home if you meet certain financial threshold requirements.

Make sure all your debts are included in the discharge so you can avoid filing unnecessarily. Certain debts, including student loans, may remain with you regardless of your bankruptcy filing. You may want to consider consulting a loan consolidation service or credit repair agency instead of filing for bankruptcy.

Rest assured, when you file for Chapter 13 bankruptcy, you still have the ability to take out mortgage and car loans. It is just tougher. You will need to secure the trustee’s approval for any new debt obligation. You need to show them why and how you can handle paying back the new loan. Also, be sure you have a clear explanation as to why the item you are purchasing is absolutely necessary.

Every single piece of financial information you have needs to be studied and properly listed when filing a bankruptcy claim. You can delay your bankruptcy process if you do not add in all important information. Even small amounts of money contribute to your overall financial picture, so do not exclude them. This might take the form of odd jobs, extra cars and outstanding personal loans.

If the process of filing for personal bankruptcy has become overwhelming to you, you may find supportive listeners in the form of online Internet chat rooms for people undergoing bankruptcy. Being in a bankruptcy situation is extremely stressful, and it can make you feel isolated, even in the company of friends. The beauty of the Internet is that you can speak anonymously with those who share your feelings about filing and the repercussions.

Before picking a bankruptcy lawyer, speak with more than one, since most offer a consultation for free. Make sure you meet with a licensed attorney rather than a paralegal or assistant, because it is illegal for these people to give legal advice. It will be important to work with a bankruptcy lawyer that you feel comfortable with; a little comparison shopping will help you find the right one.

If you have fears that you will lose your car, ask your lawyer about the possibility of lowering your car payments. Filing for Chapter 7 can help to lower your monthly payments on possessions such as your vehicle, helping to ease your financial load. It is necessary for you to have bought your car prior to the 910 days preceding your filing, your loan must carry a high rate of interest and you must be employed in order to get such a modification, however.

With any luck, this piece has shown you that financial roadblocks are not necessarily the end of the world. At first it can be difficult, but personal bankruptcy can be overcome. Put the information you have found in this article to use so that you can have a very successful bankruptcy.

Three Proven Techniques For Car Loan Approval After Bankruptcy

Most consumers associate bankruptcy with reduced credit options. The reason for this is that many people know for a fact that it will be very difficult for them to get good financing deals once they have filed for bankruptcy. How come?

Well, most lenders today tend to shy away from extending credit accounts to consumers who possess bad credit reports, especially those with bankruptcy records. After all, they do not want to take on the huge risk involved in allowing these consumers to assume credit lines.

Still, you have to remember that bankruptcy should not be the end of your credit history. This is because there are a lot of great financing deals that you can take advantage of once you have successfully fixed your bad credit report. But how can you do this?

One way to regain your financial health is to apply for an auto loan. Below we have tackled three proven techniques that you can employ for you to instantly get approved for a car loan. This way, you can have a credit account that you can use to gradually repair your bad credit history.

Three Techniques for Car Loan Approval

1. Know the requirements and guidelines of lenders. Even with a bankruptcy record on your credit file, you can still inquire about the common requisites for different car loan programs. You just need to approach a prospective lender and ask about the guidelines of the auto loans they offer. Then tell him upfront that you have had discharged your debts through bankruptcy and you wish to use a car loan to repair your credit history. Your honesty will surely encourage the prospective lender to come up with a program that will suit your personal and financial situation. And he will surely be glad to assist you regain your credit reputation by approving your application for a car loan.

2. Know your credit standing. Once you have determined the requirements for a car loan, your next step will be to prepare all the necessary documents that you have to submit to your chosen car loan provider. For sure you will be asked to provide the most recent copy of your credit report to your lender. This is why you have to obtain a copy of your credit file from any of the three credit reporting agencies.

After receiving your credit file, scrutinize the entries on your report carefully. See to it that your credit report is free from any errors and inaccuracies that can inflict further damage to your credit standing. If you see one, then file a letter of dispute to the three credit reporting agencies right away. This way, they can immediately investigate your records and eliminate the mistake or incorrect entry that you have observed on your credit file. This will in turn ensure that you will eventually receive a more accurate credit report that you can present to your lender once you have filed your application for a car loan.

3. Consider refinancing. After your application for a car loan has been approved, always look for opportunities to refinance your credit account. In line with this, you have to make sure that you pay all your credit charges on time and in full each month. Eventually you may qualify for lower interest rates and fees which will allow you to repay your car loan in the soonest time possible. And for sure this will help you finally recover your financial health.

Follow these techniques and for sure you can get approved for a car loan that you can use to rebuild your credit history, even after you have filed for bankruptcy