Rebuild – Credit After Bankruptcy
What’s the real reason behind bankruptcy? Are easy credit cards to blame? Good enough, credit after bankruptcy can be rebuilt over again once a debtor receives his discharge. Yet, it could still take several years before one can get back decent interest-rates on a credit card, mortgage, or car loan, and debtor cannot spoil credit after bankruptcy – not this time. It could take another 8 long-years before a person can file for another personal bankruptcy – painful.
There’s a good reason why the current bankruptcy law requires filers to undergo a financial-management or credit-counseling course. This rule not only places emphasis on debtors avoiding bankruptcy, but also helps debtors learn how to manage their credit and debt in the future. The bankruptcy record could stay in a person’s credit statements until 10years; and if the ex-bankrupt ever wishes to buy a $150,000-house or get a $75,000-job then the bankruptcy note could hang about for the record, and with the up-to-date record-keeping technologies used by credit-agencies, the bankruptcy record could settle – forever. So what else could be done about credit after bankruptcy?
It’s still possible to get credit again. (If someone’s that good in filing bankruptcy then he must also be good with credit.) Banks and mortgage or credit institutions have become better at cooperating with people who have gone through a personal bankruptcy. They now hand ‘secured’ credit cards that the debtor (with deposit and guarantee) can use to begin his process of credit restoration. Within as-little-as 2years banks can start giving regular credit again. It can’t be tarnished though. This time it’s a ‘secured credit’ – difficult for a next bankruptcy. The debtor must now ensure that his credit card billing-statements include information on how long it takes to pay off the credit card balance at a certain interest-rate if making only minimum payments. A credit card is still one of the tools that can be used in the creation of a financial future.
Any transfer of financial capital is quite dependent on credit, and this in turn is dependent on the reputation or creditworthiness of the holder who takes responsibility for the funds. Credit after bankruptcy is especially helpful (like loans) in building a positive financial history anew. Credit cards can enhance the debtor’s ability to receive a private loan, buy a car, rent an apartment, get a job, and eventually try to buy a house. It also holds the advantages of securing emergencies and cash backs. Above all, it gives the holder an enhanced personal responsibility and independence.
Yes credit can grant loans, yet it can also give debts. The time to worry about debts is now! Re-building credit after bankruptcy is a must. Re-build, cut, save, stick with.