Filing for bankruptcy can take a real toll, but it is actually possible to rebuild your credit if you take certain steps and proceed wisely. You’ll have to wait until you receive your “bankruptcy discharge”, the document that officially clears you from your bankrupt status, as this is the document most potential lenders will want to see before they agree to give you a loan. Once you have your discharge, you can then begin on the road to healthy credit.
Here are 5 ways to rebuild credit after bankruptcy:
Step 1: Acquire Secured Credit Cards. It may be easier for individuals who have filed for bankruptcy to qualify for a secured credit card. To get a secured card you simply deposit a set amount into a savings account and the loan is drawn against that account, for the same exact amount. That way the bank or credit union is guaranteed that you have the money to pay it off. The minimum and maximum deposit amounts will vary from one bank to another but you can often start out on one level and be upgraded to another after severa [...]
When you have bad or no credit, life is more expensive. It’s as simple as that.
Whether it’s good or bad, companies use your financial history to determine whether or not they should offer you a loan. Even worse, some companies will check your credit when you apply for a job and insurance companies will use your score to determine how much you pay for insurance.
Why Should I Fix My Credit?
When applying for a loan, the better your payment history is, the lower your interest rate will be. The lower your interest rate, the less you have to put down on a vehicle and the longer they will allow you to pay back that loan. So, learning how to fix your credit and maintaining good payment history is a valuable lifelong tool.
Here are 3 reasons you should learn how to fix bad credit today:
Just getting out into the world after graduating from high school can be difficult. You want to get out of your parents house, you want to build independence and not have anyone telling you what to do. It all sounds so fantastic, doesn’t it? Well that kind of freedom comes with just as many chains as living with your parents. Many teens forget that there are bills to be paid and responsibilities increase exponentially. One of those several responsibilities is your credit score. It’s not something many people learn about in school so they don’t know that at 18 just getting out of school that you have no financing history at all and that having no financial past makes it hard to start out. Here are some tips on how to increase your credit score.
The credit you hold is what determines what loans you can get, if any. Banks, auto dealerships, insurance
If you’re fresh out of school and on your way to college than often times you don’t have any established credit. This can work against you when you’re buying a car but may also need one wherever you may be going. Most campuses are centrally located and everything you need is right there in and around your dorm room.
When you don’t have any established credit history it may be tough for you to get an auto loan. If you don’t have a job it can be next to impossible. You still have a few options though as you adjust to your new life on campus.
1. At 18 years old most people don’t even understand what credit history is. Most of our parents have never taught us anything and the school systems don’t either. There are two big purchases you’ll make over your life time. One
If you have a low credit score and have to pay more on interest and monthly payments there’s a way to fix it. The two largest purchases in your life are a house and a car. Because they cost so much money most people have to take out loans and pay them off. How companies determine loaning money out to people has to do with their credit score and credit profile. Your credit profile is determined by how well you manage all your accounts and bills. If you pay your bills on time and have a steady job and steady living situation you will have a solid credit score and won’t have any problem getting a car loan.
If you have missed a lot of payments, switch jobs a lot and have an uns [...]