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| *Ostroff, Fair and Company>>>Credit |
What is the best way to recover from a Bankruptcy? I want to re-establish my credit but don't know how... |
I filed chapter 7 bankruptcy in April 06 and was discharged in June of 06. I'm wondering if anyone has any thoughts on how to recover from this issue?? The details leading up to the filing were a separation and divorce that has since been rectified. I have been able to live without credit and have been making my car payment every month on time. I do know that it is also important to re-establish credit at some point, but I have no idea how to go about this. I have read some articles on the net, but nothing seemed to help. Either some reviews say there is no way to recover, and others offer loads of advice. Is there a place I can go to get a credit card so I can start over? Also, I am going to need to buy a new car in the next 6 months or so and would like to be able to get one without being laughed at in the dealership. Anyone have any hints or tips of where I can look for a credit card or new car loan?? Thanks... Hi. The absolute first thing you need to do is request a copy of your credit report from all three credit bureaus and make sure that everything included in your bankruptcy that is on your credit report states either discharged in bankruptcy or has a zero balance. There are so many errors on credit reports after bankruptcy. If there are things that aren't shown as "included in bankruptcy", just dispute it with the credit bureau and they will correct it. As far as obtaining credit or purchasing a vehicle, there should be several dealerships in your area that will finance you provided that your case has been discharged. Please be advised that your interest rate may be a little high...maybe lower double digits {11 - 12 %} but you can get financing. The most important thing to do is to review your credit report. There is no need for you to contact a credit repair company because they will charge you for something you can do for free. Source(s): ~I am a Bankruptcy paralegal~ Don't buy anything. Pay all your bills on time. Don't buy anything on credit. Pay all your bills on time. Takes years to recover from this on your credit history By implementing these tips you could save hundred of dollars in interest in the long run and put cash back in your pocket in the short term. 1) Avoid using cash and borrowing from family for all your purchases. In the eyes of creditors no credit history is the same as a bad credit history. You may get away with paying cash for your car but when you buy your first home it will come back to haunt you. Even if you can afford to borrow or pay cash try opening an account to buy your furniture, automobiles, or home improvements. A diverse credit background will help with your credit score. 2) Your credit report tells all. Do not lie or stretch the truth to lenders, banks, or employers. They will easily catch you and the consequences are not worth it. 3) Do not cancel credit card accounts to improve your credit. The intended affect may be the opposite of what you expect. You can hurt your credit by canceling your credit cards; especially if you have a long history with the account. Losing a ten or twenty year credit history isn't worth it. If you absolutely must stop using a card, try shredding it. An open account that doesn't have a balance looks far better then no credit account at all. 4) Starting early is always better when establishing credit history. Getting a teenager or college student a credit card is a great way to get their history started. For those who don't trust their child's judgment yet there are many prepaid cards that report to credit bureaus. Read more from: http://www.credit-card-gallery.com/artic... .You might consider credit repair. Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters鈥攖his is the key鈥?.people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact. www.creditrepair101site.com This site may help you out,sure helped me. Good luck. |
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