GETTING CREDIT AFTER BANKRUPTCY
You do not want to repeat the practice of high credit card debts and late payments for a variety of reasons. The mix of bankruptcy and new delinquent items will cause a major negative impact on your credit score. Additionally, since you already filed for bankruptcy, you will not be able to discharge your debts via bankruptcy for some time. Therefore you have very limited options in the event that you get yourself into another financial mess.
But, possessing credit and possessing credit problems do not have to be synonymous with each other. Taking care of your credit is a vital aspect of your financial recovery. Utilizing cash for your everyday living costs is smart and will help you keep your finances in check as you develop your new way of life and budgeting. However, it is important that you rebuild your credit history and score.
Credit After Bankruptcy
Mortgages after bankruptcy are one of the best sources
of building credit.
If you are looking to utilize a car loan or mortgage from any
reputable lender, they are going to want to see that you
have practiced positive management of your finances since
your bankruptcy. When they run your credit, the most recent
activity they are going to see if your bankruptcy. You may
feel successful that you have been able to live on cash for
the past 2-3 years. However, those 2-3 years are not even
going to exist in the eyes of the lenders. In addition, your
credit score will not reflect anything other than your
One of the most popular methods for building credit is to apply for a credit card after bankruptcy.
**Homeowners should look to utilize a second mortgage for rebuilding credit.