How to Get Credit after Filing Bankruptcy
Many Times, after Filing Bankruptcy credit becomes available to individuals within a year. Sometimes, it’s a good idea for an individual to take some time and enjoy the freedom being debt-free and not being strapped down to monthly payments. Living within your means will become a joy and no longer a burden. If you feel the need to get credit it is available for those that stay employed and keep current on their living expenses.
Proper planning will allow you to proceed with your bankruptcy making the right decisions without having to be in a rush. When it comes to a bankruptcy filing many individuals create their own problems because of waiting until the last minute to call. Be proactive and take a minute to fill out the form to get a FREE NO OBLIGATION CONSULTATION with a local bankruptcy attorney to discuss your situation.
Getting Credit after Filing Bankruptcy
First of all, you need to remember that they need you as much as you need them. Having a bankruptcy filing on your credit report is not necessarily a bad thing. Creditors know two things about a debtor after filing bankruptcy. They know that the individual is probably debt-free or close to it and they also know that the individual can’t file Chapter 7 bankruptcy again for eight more years. As long as the individual is employed and continued on with a good payment history on their rent, gas, electric, phone bill and etc. many creditors look at this as an opportunity. One thing to remember for the wise, there are many creditors to prey upon individuals post bankruptcy because of these reasons. The ones to watch out for are the ones that charge huge fees and high interest rates. They will put an individual back into the bondage that the bankruptcy filing just got them out of. Before agreeing to anything, make sure it’s affordable.
After finding some credit card companies that are willing to take a risk, remember you will be paying a little bit more because of the bankruptcy. After some time transpires, as long as you continue to make your payments on time, available balances will be raised and other offers will start floating in. Make sure when you get credit card offers don’t accept them all, just enough that you can afford. Use the credit cards in moderation and continue to use them as a tool to rebuild your credit. Lastly, never be late on your monthly payments. And here’s a twist, don’t pay them off in full each month. Remember, these companies are taking a risk on someone after filing bankruptcy, if you pay them down to zero every month, they won’t make any money. Let them make a little bit of profit by going on a spend and pay cycle. This is the dirty little secret that helps rebuild your credit.