It IS possible to build a new credit rating after bankruptcy but it will take patience and improved financial choices. Filing for Chapter 7 or Chapter 13 bankruptcy will affect your credit rating for a significant number of years (six to ten). However it is possible to make different choices that improve your credit standing over time.
It’s not possible to instantly wipe out your bad credit rating after bankruptcy but you can make different financial choices. This will help in repairing your credit rating after bankruptcy. Improved money management skills can be learned via credit counseling agencies. While many creditors are wary about granting credit to those with a bankruptcy filing in their past this does not mean you won’t be able to get credit.
If you have been enrolled in a counseling program as part of your bankruptcy you stand a better chance of qualifying for credit in the future. Taking advantage of these options are all ways to improve your credit rating after bankruptcy.
A credit union may be able to help you obtain a car loan after bankruptcy. Credit unions aim their services at helping people who have made poor financial decisions in the past and can provide advice to help you repair your credit rating after bankruptcy. A home loan may be subject to higher interest rates if you have filed for bankruptcy but it is still possible to obtain one. Religious repayment will help to repair your credit rating after bankruptcy.
If you are granted credit make sure that you honor all your debts on time, each month. The only way to repair your credit rating after bankruptcy is to make sure you repay your debts. This new financial management strategy will over time result in an improved credit score and better financial opportunities. The trick is not to become frustrated if things don’t change immediately.
Do you still have a credit card? Avoid falling into the credit card trap again by keeping one card only and repaying more than the minimum amount each and every month. The more responsibly you pay your credit card debt down, the better your credit rating will become. Remember there is no quick fix to repairing your credit rating after bankruptcy but you need to understand how to manage your credit cards better.
Be aware of credit card repair scams. There is no way that any company or individual can “wipe out” your credit rating after bankruptcy. Recently the number of unscrupulous individuals that offer a fast credit repair plan has reached alarming proportions. You should also be aware of your consumer rights under the Fair Credit Reporting Act. Get a copy of your credit report and make sure that all the information listed is accurate.
Then set about making sure that any loan, credit card, mortgage or educational loan you are granted is repaid promptly and on time. If you have any extra funds available plough them into your debts to stand the best chance of a better credit rating after bankruptcy court.
