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 Bankruptcy Articles


Getting credit after bankruptcy is difficult; nevertheless, it is possible. Immediately after declaring bankruptcy, one's credit life can be disastrous, but one could take advantage of their situation and start to build a new credit record during this difficult time. The three most common ways to getting credit after bankruptcy is to receive secured credit cards, high interest credit cards, or a small loan. These rebuilding steps will require great effort by the bankrupt; however, they will re-establish one's credit after he or she has declared bankruptcy.

Secured Credit Cards
Maintaining a secured credit card is one of the easiest ways to re-establish credit after declaring for bankruptcy. A secured credit card is a type of credit card where one must initially deposit money with the creditor in order to receive a small credit line. This deposit is a safety measure for the lender in case one defaults on their loan. In other words, secured credit cards are "secured" by savings accounts that are authorized with card companies. If the borrower maintains his or her payments for several months after the deposit, he or she will most likely have their deposit refunded. One should strive to receive a secured credit card from a lender who reports his or her payment history to the credit bureaus. By reporting your secured credit card payment to Experian, Equifax, or TransUnion, one is able to publicly re-establish their new credit history and start on the path towards financial freedom.

High Interest Credit Cards
Possessing a high-interest credit card is another way to re-establish your credit after declaring for bankruptcy. These types of credit cards typically have interest rates of 20% to 30%, accompanied by large initiation fees and high annual fees. Remarkably, the fees can often match the credit card's limit; however, they do re-establish one's credit with the bureaus, if reported. Although the fees seem steep, after several on time payments, one's credit line will increase as well as their credit score. Nevertheless, high interest credit cards do posses many deterrents but if treated properly they could start to relieve one's credit.

Small Loans
Acquiring a small loan is another way to start to relieve one's credit after declaring bankruptcy. Although this the most difficult way to repair one's credit after bankruptcy, it is possible; however, it is solely based on you relationship with your financial institution. If you know your loan officer well, and he or she trusts you, they might be open to creating a small loan for less than $10,000 in order to help you get your credit record back on track. Often times, these new loans come with high interest rates and small credit lines, but they are another way to rebuild your credit after bankruptcy.

In order to start getting credit after bankruptcy, one must seek ways to receive loans which are reported to the credit bureaus. These documented loans are the quickest way for one to start getting credit after bankruptcy. Even though one has declared bankruptcy, their financial future is not permanently damaged. If one receives any of these types of loans, he or she will start getting credit after bankruptcy and start on the path towards financial freedom.



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