Most people think there is no life after bankruptcy, much less credit. If it
7 Steps to a Fresh Start After Bankruptcy
February 13, 2010 By Leave a Comment
Bankruptcy is one option to consider in order giving yourself a
Find Out How to Get Credit After Bankruptcy
February 13, 2010 By Leave a Comment
Nobody wants to declare bankruptcy, and nobody wants to admit that they are at the point of needing to file for bankruptcy, but it is a reality for many people. Frequently, this is due to a situation beyond their control and is not attributed towards poor financial management. But whatever the reason, one of the problems faced by consumers who declare bankruptcy is getting their life back on track afterwards and being able to get new credit.
You undoubtedly have already discovered that after filing bankruptcy, this act leaves a huge red flag on your credit report for many years, and it may seem almost impossible to get approved for a new line of credit, even with a local department store or a gasoline credit card.
But the informed consumer needs to realize that while traditional efforts to get new credit may not be fruitful, there are several ways that someone can get credit after bankruptcy with a bit of research and knowledge of how the system works. You need to realize that it not going to happen overnight and will take time to get you established as someone who is not going to declare bankruptcy again next year, but it can be done and is being done by thousands of people who have filed bankruptcy.
The very first thing you need to do is to get copies of your credit report from each of the three major credit reporting agencies. Each of them keeps a separate credit history and profile on you, so be sure you get a copy of your report from each of them. Getting only one of them or even just two of them is not going to help you.
Next, go over your credit reports with a fine tooth comb. Be aware that the majority of consumer credit reports contain errors, and you are looking for errors, inaccuracies and things that are just not being reported correctly. Chances are better than excellent that you will find at least one if not more items that are incorrect. It is your duty to dispute those items with the credit bureaus. It is the credit bureau’s legal responsibility to investigate the items you are disputing, and if they cannot be verified as being accurate as shown, then it is their legal responsibility to remove that item from your credit report.
The reason this step is critically important is because even though your bankruptcy is going to be readily apparent in your credit report, you want to remove anything else that is negative, and this is your right if the information is not accurate. The effect of removing these items will raise your credit score, and your computed credit score is going to be the key element that defines whether or not you are approved for new credit.
You should also put a personal statement in your credit report. Each of the credit reporting agencies allows you to enter a personal statement up to about 150 words. Use this statement to explain why you had to declare bankruptcy and to minimize the negative effects of the bankruptcy. If it was due to a job loss or high medical expenses, explain that, which puts your bankruptcy in a totally different light, and something that new credit granters will look at when they pull your credit report.
For more insights and additional information about how to get Credit After Bankruptcy as well as resources to help you find a Personal Loan please visit our web site at http://www.credit-help-center.com
Securing A Loan After Bankruptcy
February 13, 2010 By Leave a Comment
At some point, most of us will require extra cash to deal with some financial problem or to have the funds to begin some new project like home improvement or pursue a business venture. In other words you will probably get a loan of one type or another whether it is for a house, a car, or to further your education or that of your children. Even for people who have had to file for bankruptcy, these situations will come about. Though it may seem like a major obstacle to get approved for loan if you have been declared bankrupt, this is not necessarily the case. In fact, bankruptcy does not have to be barrier at all to you obtaining a loan or a line of credit.
However, that being said, if you are looking for a loan you will have to deal with specific conditions. Most lenders will attach certain requirements to any loan applications they approve from those borrowers who have declared bankruptcy at some time in the past. There are three typical conditions that borrowers will have to account for when they seek to get a loan after bankruptcy.
* Collateral – Since bankruptcy is seen by many lenders as a palpable risk, they will require some sort of security in the form of collateral in order for you to receive a loan or a credit line. Most of the time, collateral will include assets like houses, cars, real estate, or other valuable possessions that can be pledged to cover any losses suffered by the lender if the borrow defaults on repayment of the loan.
* Higher interest rates – From the lender’s perspective, you are a riskier borrower when you have poor credit history and especially because of the presence of the bankruptcy on your record. This translates, for many lenders, into a tendency for the borrower to miss payments, become habitually late with repayment from month to month, and possibly default on the loan entirely. In order to counterbalance these obvious tendencies, lenders who do offer loans to recent filers of bankruptcy will often charge higher interest rates. Thus, as a borrower, you will likely pay an interest rate that is at least one or two percent above the average rate.
Higher financing fees – Lenders may also carry over these risk management efforts to other financing fees. Just as with higher interest rates, these other fees including annual fees on credit cards or late payment charges. These higher charges are just a part of doing business with those borrowers who have declared bankruptcy.
Once you realize that there will be some differences as far as the overall cost of the loan, you will be better prepared. It is entirely possible to obtain either credit lines or loans after declaring bankruptcy. Different conditions and terms may apply so you, as the borrower, should do research. You should be prepared to pay more for the money that you actually borrow if you do not have significant collateral to allay the lender’s fears. In the end, regardless of the extra costs, you will be able to enjoy the benefits that security a loan can provide after bankruptcy!
Joe Kenny writes for Rebuild, offering personal loans, or for UK residents loans for any purpose finance.
Visit today: Loans from Rebuild.org