There IS life after bankruptcy. The effects of bankruptcy may seem dire, but the impact they have on your credit report will eventually fade away. You can begin rebuilding your credit as soon as you receive your bankruptcy discharge by applying for a secured credit card.
Whereas unsecured credit cards require a good credit history, high earning potential, and financial strength, a secured credit card only calls for a deposit as collateral. Creditors likely will not turn you away since they know you have been discharged from your debt and cannot file for Chapter 7 bankruptcy again for another eight years.
Initially, the offers you receive may not seem the best, but they are good places to start in the process of rebuilding your credit. It is easier to obtain a line of credit from finance companies, but the trade lines from a bank or credit union are more attractive. These establishments will probably start you off with lower credit limits, but your poor credit will improve faster since you are rebuilding it with established lenders.
Start rebuilding your credit by applying for secured credit cards or loans, which will require you to give the bank a select amount of money to hold. The credit limit you receive will be equal to the amount of money that you give them.
Do not worry if your credit does not improve as quickly as you would like. The process of rebuilding your credit will take several months, but if you start now, you can bring yourself closer to buying your dream home, pulling together financing for a car, and chasing your dreams faster.
Be sure to look out for the next part in the series, Create a Realistic Budget, coming soon! Until then, if you are struggling with your finances or are thinking about filing for bankruptcy, give The Bankruptcy Advocates a call at (618) 549-9800 for your free consultation today!
Southern Illinois Bankruptcy Attorney law firm Bankruptcy Advocates is located in Carbondale and serves a wide geographic community. The first consultation is always free. Give us a call at 618-549-9800 or email us at [email protected] to speak about your case or legal matter. Convenient appointment times are available.