After bankruptcy, your financial situation will certainly not be the same. Yes, a record of bankruptcy will stay on your credit report for seven to ten years. However, this doesn’t mean you can’t do anything about it. In fact, a speedy recovery from bankruptcy is very possible as long as you do the correct steps. In this article, we’ll talk about the positive steps you can take to get over bankruptcy and rebuild your damaged credit in the soonest possible time.
Regain Your Lost Credit
After bankruptcy, all debts and credit history you’ve established in the past will show as resolved by bankruptcy, thus putting you in the position of having to start building a new credit history. You may think that applying for new credit would be difficult because of your record of bankruptcy. Lenders will of course see you as a high risk borrower. The good news is, not all lenders in the market require excellent or good credit. As a matter of fact, people with bad credit or no credit history are the exact clients that other lenders are looking for.
Credit card companies that offer bad credit credit cards and lending companies that provide bad credit loans can help with your present situation. True, bad credit credit cards and bad credit loans may come with higher interest rates, lower credit limits and more restrictions. Still, if you do your research well, you can find lenders who offer people with bad credit, credit cards and loans with reasonable rates and terms.
By obtaining a credit card or a bad credit loan, you can begin to establish a new credit history for yourself. Use your credit card but see to it that you’ll be able to keep up with your payments. Make it a habit to pay off your whole balance for each month before your due date of payment.
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Make sure that your lender or your credit card company reports all your payments to the three major credit bureaus. Take your payment obligations seriously. Remember, this is your chance to prove that you’ve learned your lesson well. Surviving bankruptcy should have now made you more aware of your financial obligations.
By keeping up with your payments, you should be able to see an improvement in your credit history and your credit score after a year or two. As soon as you start making progress, take the chance to inquire from your credit card company if you can qualify for an upgrade to a regular credit card. This will enable you to enjoy lower interest rates and a higher credit line.
It is also recommended to include a statement that will appear on your credit report explaining what lead you to bankruptcy and the steps you’ve already done to get yourself out of the situation. Each time a lender makes an inquiry on your report, they will be able to read your statement and it may increase your chance of getting approved despite a record of bankruptcy in your credit report.
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