| Credit After Bankruptcy: Finding Your Solution |
| Written by Jack Smith | |
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Within a few months of filing bankruptcy, you may start to see opportunities surface for you. Getting credit after bankruptcy is possible, but it usually takes at least three to six months before any lender will contact you. You may start to receive new credit card offers during this time. These loans are likely to be the most cost you have ever seen. They often include large set up fees, costly program maintenance fees and annual fees. It is common to get a credit card with a $300 credit limit that requires you to charge $200 worth of fees to it just to open the card, even before you use it. Over time, you will see that the offers improve. You will likely have to pay the yearly fee, called an annual fee, until your credit score improves substantially. At that time, you should be able to get back on tract quickly with new credit lines. During this time it is very important that you do everything you can to establish a good credit repayment plan. This will include making payments to your creditors on time, paying more than your minimum balance (or paying off the entire balance in full) and keeping a low balance on them. When you do this, you are showing lenders you know how to use credit and can do so well, even after your bankruptcy. Using credit wisely is important not just so you can get additional credit cards, but also because you need to get new loans for vehicles and for your home loans. Within 18 months to two years of filing for and receiving discharge from bankruptcy, you will be eligible to borrow money for a car loan (assuming that you have made strides in rebuilding your credit during this timeframe.) You may also qualify for a home loan, including a federally backed home loan at two years from your discharge of bankruptcy. There is the opportunity of rebuilding your credit after you find for and get bankruptcy. It does take time but the risk of not being able to repay your debts yourself can make bankruptcy a much better solution for you over not being able to pay anything. Through hard work and a lot of careful credit use, you can build a sizable credit score over time and gain access to low rates and large credit limits. |
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