Did you know it is possible to get a loan after a bankruptcy?
It is possible to get a loan after a bankruptcy has been discharged. If you reaffirmed on a car payment or a truck payment and kept that payment up, and you still had good credit with that. You didn’t miss a payment on your house during and before and after the bankruptcy, and reaffirmed on the home. You received credit for that. But letting your credit cards go, and medical bills go will affect it! But one of the first things you might want to do is just get one credit card! It could be a company has the option of a secured card.
What is a Secured Credit Card?
It is a credit card that you put money as a deposit on the line. For example, you get approved for a line which is really your money deposited into a certificate of deposit. You can’t use it for a period of time but if you use the card, and pay on it on time, that company will probably give the money back to you, and you can get an unsecured card because as the saying goes you’ve earned it!
But what is an unsecured card?
It is a card with no collateral. You default they don’t have something to claim against you. You get this card or line based on your good credit history. So keep your payments paid on time! Also, don’t go over the limit, or 45-50 percent of the line in use, because if you go to get credit it scares the creditor! It is a photo of how you pay, and how you use credit. Much like if you go to the casino, and spending everything you have it is gone. It’s a risk!
Also, don’t use a card to impress your friends or neighbors. Use it if you are without cash and in a jam if you forgot your debit card. Then when the bill comes pay it off!
Only use your credit when necessary. Like buying a home, and car you can afford.
Some companies allow you to have a credit card right away based on your credit and they say you have earned it! Believe it or not they are out there!
Having a card, payment with your house, and car payment on time will raise your fico score. There are 3 credit bureaus, and just like a doctor’s office you should check on your credit once a year. Keep going with your credit after the bankruptcy! Sometimes these are situations that can’t be helped like 4 operations, a loss of a job, and loss of a loved one. Your money has gone away, and you had to use credit as your last resort! It is now past you but keeps positive and keeps up the good work of getting yourself back on track!
Those three credit bureaus are:
Equifax
P.O. Box 740256
Atlanta, GA 30374
(800)-685-1111
Web site: www.equifax.com
Experian
PO Box 2002
Allen, TX 75013
(888) 397-3742
Web site: www.experian.com
TransUnion LLC
P.O. Box 2000
Chester, PA 19022
(800) 888-4213
Web site: www.transunion.com
Many people are under the impression that they won’t be able to get a loan after a bankruptcy. It might not be the best rate in town, but at least you can get a loan!
Most times buying a home after a bankruptcy is 2 years, and not 7-10 years that it would take for the bankruptcy to fall off your bureau. Some of these rules will be changing with a short sale, foreclosure, etc starting August 1st, 2008.
Start slow, and don’t get yourself in that mess again! Think do you really need it, if you have to think about it, you probably don’t!