|
You Can Get Credit After Bankruptcy
|
| You Can Get Credit After Bankruptcy |
|
| Updated |
Jun 10, 2004 21:46:47 |
| Rating |
0 |
|
|
Description:
One of the best ways to start rebuilding credit after bankruptcy is to obtain what is known as a secured credit card. A secured card is a bank credit card backed by money that you deposit and keep in a bank account that is linked to the credit card company. That account serves as security for the card. (If you don't pay your credit card bill, the money in your account may be used to cover that debt. On the other hand, you may increase your "limit" by increasing the balance in your linked bank account.) Secured credit card grantors report to the credit bureaus just like the unsecured do, so your new-found positive payment history will be known by future creditors. Although the interest rates may be higher for these cards than for non-secured cards, they are worth the extra cost; you are showing that you can be trusted to "buy now-pay later" once more. And, as you build your good payment history with a secured card, the company may reduce the amount you must keep in your linked bank account or eliminate it altogether, thus giving you the kind of unsecured card you'd have little chance of getting otherwise.
Another good way to re-establish credit after a bankruptcy is to ask another person who trusts you to cosign a small loan for you; maybe just a personal loan at the bank where you have your checking and (hopefully!) savings accounts. As you make payments on the cosigned loan, the positive credit history you are building will be reported on your credit profile just like a loan you took out by yourself would. Just to be sure you and your cosigning partner understand what cosigning involves, you might both read this article on cosigning.
After you have spent a period of time charging and paying, borrowing and paying; you will be ready to adopt the methods, that people who have never declared bankruptcy would use to build good credit. Click Here for helpful information on establishing credit.
Click here for a free credit report.
Powered By CreditMatters.com |
|
