bankruptcy

Bankruptcy – Getting Your Credit Back

Tip! As we said before, your financial and social status will be deeply affected. People tend to loose faith upon someone who has filed for bankruptcy.

Your bankruptcy case has gone through and you’re trying to put all of this behind you. You want to get a fresh start and not make the same mistakes again in the future. It’s time to start thinking about rebuilding your credit.

No matter what caused you to file bankruptcy, be it from doctor and hospital bills, a divorce, a loss of your job, or perhaps even your own foolishness, you’re going to have to start over again. You will need to prove to lenders that you are a good risk. This is going to take some time and effort on your part, but it can be done. Here are some good tips to help you get started rebuilding your credit after a bankruptcy.

Tip! Your credit history will be damaged by bankruptcy; it will appear on your credit report for as long as 10 years.

Getting New Credit

Many people mistakenly believe that if will take 7 years after your bankruptcy before you can ever get any kind of a loan or credit card again. This is completely false. Did you know that many people come out of a bankruptcy with higher credit scores than they ever had in their financial life?

Tip! If you’re married, both spouses have to file for bankruptcy. Not necessarily.

There is no real big secret to this. These people began paying their bills on time again. And they did it consistently month after month. To help begin rebuilding your credit you should consider getting one credit card as quickly as possible, even if it is a pre-deposit credit card. Many credit card companies will give you a credit card after a bankruptcy. You just need to do some searching.

Tip! Pay all of your bills on time. Bankruptcy is a means to financial recovery.

Then make a few small charges to it and pay it off every month. Do not carry a forwarding balance. Simply pay it off every month. This will help rebuild your credit faster than anything else you can do after a bankruptcy. It shows lenders that they can trust you again. Then slowly begin building up to higher purchases and pay those off in a couple of months. Never only make a minimum monthly payment.

Pick Your Debts

Get a credit card to use at your local gas station or grocery store. Then begin using it instead of paying cash. Take the cash to cover these purchases and sit it aside. At the end of the month take the cash and pay off the credit card statement. This will go even further towards rebuilding your credit after your bankruptcy.

By following these steps you’re going to be in a position of being able to finance a new car or home within a couple of years. You first just have to show you can be trusted to pay off your debts every month. Then you’re showing you’re responsible and you’ll be able to make bigger purchases.

Insurance

Most all credit card companies offer insurance to cover your monthly payments in the event you lose your job. Be sure you take advantage of this insurance. If something unexpected does occur, then you’re covered. Don’t take any unnecessary chances with your financial future. You don’t want to put yourself in the same situation as you did before. The cost of this insurance is very low.

Tip! The first step in learning how to file for bankruptcy is to make a comprehensive list of all of your creditors and outstanding debts. When you are working to determine how to file for bankruptcy, you need to appreciate that if you to proceed with a bankruptcy case, you must be sure that all of your debts are disclosed and listed in a bankruptcy petition.

Michael Russell

Your Independent guide to Bankruptcy

credit

3 Ways To Get Credit After Bankruptcy

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Declaring bankruptcy may seem like a financial disaster, but it is possible to bounce back in a short amount of time. In most cases, you have to give up your credit cards when you declare bankruptcy. But it’s almost impossible to do certain things–like rent a car or reserve a hotel room–without a credit card. Fortunately, there are some ways you can get credit after bankruptcy.

Credit for All Borrowers Get a mortgage, car or personal loan regardless of your Credit.

Get a secured credit card.

Secured credit cards are available to almost everyone, even those who have recently declared bankruptcy. You make a cash deposit of a certain amount–say, $250–and you’re given a credit card with a $250 limit. Your deposit “secures” your card so that, if in the future you can’t make payments on it, the bank will have your deposit as payment. In many cases, if you use the credit card wisely and always make on-time payments, the bank will eventually expand your credit limit past the amount of your deposit.

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Accept a higher rate.

Since bankruptcy makes you a higher risk customer, some banks or lending companies may offer you credit–but at an increased rate. Whether it’s a loan or a credit card, you may pay a higher interest rate, higher fees or higher charges. And chances are the amount you’ll qualify for is lower than it would have been if you had never declared bankruptcy. Still, it is possible to get a loan or credit card after bankruptcy if you’re willing to accept these increased costs.

Credit Repair Be debt free now. Bills.com has all the consolidation info you need.

Use a little collateral.

If you own your own home or car, you can use it as collateral on a loan. In many cases, even after bankruptcy, this will get you a reasonable interest rate and reasonable fees. For example, if you have equity in your home, you can get a Home Equity Line Of Credit (HELOC) which draws on your home’s equity as the collateral for your credit.

If you recently declared bankruptcy, there are some options available for you to obtain credit. And it’s a good idea to get at least one credit card or small loan–and make regular, timely payments on it–so you can rebuild your credit history.

View our recommended after bankruptcy home equity line of credit lenders online.

Go Get Your Free Credit Report and Score Be Credit Smart. You’re on your way, credit and Go. It pays to know your credit credit score. Do you know your credit score? See your Free Credit Report and Score Now.

Also, check out our recommended after bankruptcy auto financing lenders online, or view our recommended sources for secured credit cards online.

bankruptcy

Loan After Bankruptcy: Steps to Take Before You Apply

Tip! The forth factor that needs to be considered on the road to filing for bankruptcy, is to determine whether you will seek professional assistance in the pursuit of a bankruptcy case. Some people do elect to file for bankruptcy on their own without the aid and assistance of a lawyer.

When it comes to a loan after bankruptcy, here are some steps you can take before applying which could increase your chances of qualifying.

First, work on increasing your credit score. This is very important, because most lenders will review your credit report when deciding whether or not to extend you a loan after bankruptcy. This is true whether you are talking about a car loan after bankruptcy, a conventional home loan after bankruptcy, or a personal loan after bankruptcy.

Tip! You can’t get rid of back taxes through bankruptcy. Generally speaking, this is true.

So how do you increase your credit score? There are a number of ways. One is by removing any inaccurate or obsolete negative information from your credit reports. Another way is to open some new accounts and pay them in a timely manner over time. There are more ways to increase your credit score, but I don’t have enough space to cover them here.

Second, you will need to know which lenders to approach when it comes to applying for a loan after bankruptcy. For example, if you apply for with a lender that doesn’t accept applicants that have a recent bankruptcy on their credit report then you never had a chance to begin with.

So how do you know which lender to approach? Ask questions. This is critical when applying for a loan after bankruptcy. What kind of questions should you ask? While there are several, let me give you two as an example:

1) Do you consider applicants who have a bankruptcy on their credit report?

The lender will probably want to know how old the bankruptcy is, whether it was discharged or dismissed, etc.. You will want to have that information available should the lender consider extending you a loan after bankruptcy.

Tip! Everyone will know I’ve filed for bankruptcy. Unless you’re a prominent person or a major corporation and the filing is picked up by the media, the chances are very good that the only people who will know about a filing are your creditors.

2) What are your qualification guidelines?

Most lenders have a minimum criteria that applicants must meet in order to qualify for a loan. For example, if you apply for a home loan after bankruptcy, the lender will probably require a minimum credit score, a minimum debt to income ratio, etc. in order to qualify for the loan. You need to find out what the lenders’ minimum criteria is before you apply for a loan after bankruptcy.

Tip! There are no after payments. Once your bankruptcy is discharged that is it, you are debt free.

Finally, after you’ve increased your credit score and found a lender who will consider your application for a loan after bankruptcy you will need to negotiate the terms such as the interest rate, finance charges, down payment, etc.

This is where a lot of people get taken advantage of when it comes to getting a loan after bankruptcy. Some lenders will act like they are doing you a “favor” and tack a pile of interest on top of the loan – and add extra finance charges. Depending on what you’re financing, this can add $100s or even $1,000s to your loan after bankruptcy. In After Bankruptcy Credit Solutions, I cover specific strategies you can use to stop lenders who try to take advantage of your situation.

Tip! As we said before, your financial and social status will be deeply affected. People tend to loose faith upon someone who has filed for bankruptcy.

Now you know some specific steps you can take before applying for a loan after bankruptcy which could help increase your chances of qualifying – as well as what to watch out for once you’ve found a lender who will extend you a loan after bankruptcy.

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Copyright © 2006 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Tip! Fourth step is optional; you can apply for a mortgage after bankruptcy even with bankruptcy discharged yesterday and just about any time you want.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

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About the Author: R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for a loan after bankruptcy.

bankruptcy

Rapid Credit Score Recovery After Bankruptcy!

Tip! Get a copy of your credit report. Many times (most times) the credit accounts that are absolved with your bankruptcy are not removed from your credit report immediately.

Most credit experts agree that the worst possible credit entry on your Credit Report is a Bankruptcy. Whether you have filed a Chapter 13 (13 is a pay back plan with just some debts eliminated) or Chapter 7 (everything is eliminated except for a few essentials), it demonstrates a complete failure in managing your credit.

Regardless of why you filed, this entry stays on your credit report for 7-10 years. Everyone has their story, and sometimes circumstances go beyond anyone’s ability to recover from insurmountable debts. A good example is when a family member suffers a catastrophic illness and the medical bills are way beyond any health insurance benefits.

But there are ways to recover fairly quickly from this type of situation. It takes a little dedication and effort but in as little as 18 months you can have your credit score back in the high 600 range. Your credit score can range from 300-800+, and if your score is below 600 for any reason it’s time to make some changes.

Tip! Filing for bankruptcy will improve my credit rating because all those debts will be gone. That sounds like an ad for a bankruptcy lawyer trolling for clients.

The reality is that no one is better at improving your credit score than you. It doesn’t take any special talent or skills. You do need to face the reality that you are at a disadvantage and it’s time to start taking corrective action. Put the bad experience behind you and move forward. Easy to say, sometimes hard to do. So if you need some counseling help, a good place to look is your local community organizations or perhaps even your church. There are people that are willing to help you get over this problem, and don’t have to pay for it.

A low credit score can cost you money, job opportunities, and credit denial. Bad things happen to good people and so many creditors may consider more than just your credit score. But your credit score still plays a big part in most decisions made on whether to grant you credit and at what interest rate.

Many high paying jobs ($100,000+) or jobs that you have a key role in handling money will run a credit check on any applicant. You can understand why, sometimes the temptation is to great and people have misused their positions for financial gain. Employers have to protect themselves so this policy is very understandable.

Tip! A bankruptcy filing remains on a Credit Report for as long as 10 years, and it also stays on Court Records for as long as 20 years. Thanks to this, your chances of getting a loan and even a job again, will be minimal.

The lower your credit score, the higher interest rate you will be offered due to the higher risk you represent. Interest rates can go as high as 28%, that’s almost a third of the amount you borrow. But you can still find a relatively good rate, maybe not the lowest (prime rate +1) but within a few points.

The tough part is finding some creditor to give you a second chance. And you also have to be very careful, as there are many companies that will take advantage of your situation. The credit industry is a business just like any other. There are lenders out there that will give you credit, but the catch is finding credit at a reasonable cost.

Start out slow, and make some small purchases at stores who will grant you a small amount of credit at a reasonable rate. Electronic, appliance, and furniture stores are usually willing to give you a chance to start building good credit. A good example in Texas is Conns (http://www.conns.com) Appliance Stores. They have a good program and charge very reasonable rates.

Tip! I can max out all my credit cards, file for bankruptcy, and never pay for the things I bought. That’s called fraud and bankruptcy judges can get really cranky about it.

Stay within your budget and make a down payment of half. Then try and pay off the note within 6 months or as early as you can. Do the same thing at a furniture or appliance store. You can have 3-4 good entries in your credit file within 9 months.

Get a small limit (or even a deposit based credit card – most will convert in 6 months or less if you abide by all the requirements) credit card and only charge very small amounts. Pay off your balance in full each month, and pay it off early if possible.

Make sure that you pay on time or early on any credit account that you retained after your Bankruptcy filing, such as a house or car. This will show creditors that you are now managing your credit and will improve your credit score.

Tip! Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well.

In fact if you do all of these things above and follow the basic instructions you will get back up to the 680 score and above. I have seen it happen time and time again. This is not brain surgery and anyone can recovery from a bankruptcy filing in a comparatively short time.

It’s also a good idea to monitor your credit reports during your recovery period. Everyone should check his or her credit report each year. It’s now Free and won’t take much time as long as you stay on top of it. You can request one credit bureau at a time every 4 months and have a good idea of what’s been entered in the past 12 months.

Tip! Obtain a copy of your bankruptcy and discharge papers from your attorney or the courthouse. This may include a copy fee.

Don’t pay for something that you can get for FREE. Go to the Federal Trade Commission’s site here to get the full details of getting your free credit reports:

http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm

With a little determination and effort, you can recovery and increase your credit score even after filing a bankruptcy

New Clean Credit is a website that provides free information on Credit Repair. Get their Free Repair Your Credit In 30 Days Guide. Increase your credit score today. Click here to learn more: http://www.newcleancredit.com

personal loans

Bad Credit Unsecured Personal Loans for Unemployed!

Tip! The biggest advantage of personal loans is that they are of two types, unsecured and secured. While secured loans are limited to homeowners only, unsecured loans facilitate both tenants and homeowners.

Being unemployed is a huge burden itself, having plenty responsibilities to attend to and not being able to support the family and look out for it’s needs can be a very stressful situation. The problem is where to get finance while in search of a new work to regain a steady income.

Moreover, this situation tends to make the unemployed doubt to use his house (if he is a homeowner) as collateral due to the risk of repossession. He doesn’t know when he will be able to have enough earnings to repay the secured loan without sacrifices so, his doubts are understandable.

Unsecured Bad Credit Unemployment Loans

This is when unsecured unemployment loans help going through this situation. These loans are meant for those who have lost their job and need to get a loan to pay for everyday expenses while they focus on getting another job and returning to their normal life. Even if it is long term unemployment, there are loans available to cover for it.

Tip! Some years ago, the lenders were reluctant to offer loans to self-employed because self-employed personal loans are not based on proof of steady income. However, the situation has changed dramatically.

The main issue when it comes to unsecured unemployment loans is the loan repayment. The lender will focus on the requirement of providing a loan repayment source. This happens because there is no collateral securing the loan so there is a high risk involved for the lender.

Nevertheless, there are many sources to hold up repayment: Disability living allowance, other allowances, income support, and redundancy pay from the employer. You might as well offer a co-signer which will greatly improve your chances of getting the loan approved.

This kind of loans can also provide a grace period in which you won’t have to pay any installment. The idea is that during this period you can concentrate on getting a new job which is the source of income lenders prefer. Knowing that an unemployed person can have unstable jobs for a period of time, these loans usually include the possibility to request a stand-by period even when the repayment has already started.

Interest Rate and Purpose

The interest rate on this kind of loans is an issue for they are high risk loans; the interest rate tends to be very high. However someone who is looking for this kind of loan should contact as many lenders as possible and ask them to provide loan quotes. After comparing them, the decision will be much easier. The best source of information on this kind of bad credit loan is the internet. By doing a search online you’ll be able to find many financial sources dealing with this kind of loans.

Tip! If you want to avail bad credit personal loans at a lower rate of interest, you can opt for bad credit secured personal loans. For such loans, you will have to pledge some of your assets as collateral to secure the loan amount.

Summing up, these loans are for emergencies, it’s not a permanent source of finance and thus should be repaid as soon as possible. However, in such a desperate situation, it’s good to know that the finance industry has created a solution that allows those who are unemployed and have bad credit to get finance to meet their daily needs.

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. You can visit her site and get aid for Unsecured Personal Loans regardless of your credit. If the link doesn’t work, just copy badcreditloanservices.com and paste it in your browser’s address bar.