Bankruptcy not only affects your finances but also your credit score and we can?t deny the fact that almost everything from jobs, insurance, purchase of a home and cars to even apartment rental depends on your credit score and bankruptcy can put your credit score in very bad state. A bankruptcy will remain on your credit report for up to 10 years and can keep your FICO score low until you improve your credit score. But don?t worry, after bankruptcy, there are some real ways by using which you can improve your credit score.
Some of the ways to rebuild your finances after bankruptcy are:
Examine your credit report:
The first thing you need to know is about your financial condition according to your credit report. ?Obtain a copy of your credit report and check for flaws and inconsistencies. Try to find out how it breaks down and identify any loopholes. You can get a free copy of your credit report every year from Equifax, Experian and Transunion.
Make payments on time:
The best way to improve your credit score is to make payments on time as most of the credit report includes information your payment history
Opt for secured card:
Getting a secured card for which you need to keep a security deposit with the issuer can help to improve your credit rating even if you don?t carry any balances on your card.
Take a loan:
After completing a year or two, post-bankruptcy, it will be better to apply for a car loan or a line of credit and repay the loan amount successfully. Getting a loan can cost you high a rate of interest to start off with but repayment will effect positively to your credit score.
Research properly before using credit repair services:
There may be the chance that some credit repair services approach you with an offer to repair your credit. Carefully examine and do research about the credit repair services before hiring them as their fees can be very expensive.
Know your credit card limits:
It will be better to know your credit cards limits and to keep your expenses below them. There are chances that you may have very low credit limit because of your credit score. Use your credit card wisely and make payment on time.
Avoid long-term loan:
Never opt for a long-term loan while improving credit score as these loans can put you in debt for a longer period and inability to repay can affect your credit score badly. In case of financial emergency opt for short term loans such as payday loans which you have to repay on your next payday.
Don?t close your accounts:
Closing of your accounts and credit card will not improve credit; instead it is going to damage your credit score badly as it decreases the amount of credit available to you.
I am Michelle Ryan. I am a tech writer from UK. I am into finance and Business.?Catch me @financeport.
What is Bankruptcy
Bankruptcy in simple terms means a person or organization is insolvent or is in a state of insolvency. Insolvency means the person or the organization is not in a position to repay the debts it owes to its creditors. This is mostly imposed by a court order which is being initiated by the debtors. Let us delve a bit deeper and try and understand the origin of the very word ?bankruptcy?. It is derived from the Latin word ?Bancus ?(which means a bench or a table) and ?ruptus? (which means broken). Earlier banks referred to a bench, which the initial...
Tips to Get Rid of Your Bad Credit
Everyone is looking for ways to improve their credit, as the economy is little less than desirable. With a bad credit score it is difficult and sometimes, impossible to get your loan approved, and even if your loan does get approved, the interest rates will be high and unbearable? this makes your financial situation even worse.So, it is important to repair your credit score before you apply?for a loan or other credit. Below are some of the tips that help you to?improve your credit score: Check your credit report first:Your credit report contains all the information on your finances, including...
5 Great Tips to Get a Bad Credit Mortgage Loan
Buying a home is one of the expensive investments that people ever make. Purchasing a home typically involves approval of a mortgage loan which can cost thousands of dollars in interest over the life of the loan. If you are suffering from bad credit and want to get a mortgage loan, you have to take in to account several things before submitting a mortgage application. Your mortgage lender will ask you about your credit profile and it might be difficult to convince a lender to approve you for a mortgage loan. However, certain tips may help you secure a bad...
The Very Basic Credit Score Improvement Tips
Have you ever tried to shed your weight? If ?yes?, then you must understand how frustrating it is. You are not a miser in pouring in your best effort but still the sticking out tummy shows no sign of becoming flat. Wondering why I have made a mention of flab-reducing exercises in this regard? Well, credit score improvement is sort of trying for weight loss, lots of effort but least of gain. Some may tell you about the easy credit record improvement tools that work really fast. But never believe in such assurance. There are no ?wonder? tips to improve...
Tips on How to Build Good Credit as a Student
Building good credit can be difficult for a student going off to college because many times they will have no prior history built up for reference. Good credit can make it easier to rent an apartment or obtain a loan to buy a car in the future. Achieving a high credit rating will take some time but there are some tips that should be kept in mind to make the process easier. Get some credit It may seem odd, but in order to get favorable credit a consumer first has to have a credit history. This is not an easy...
Source: http://financecareguide.com/rebuilding-your-finances-post-bankruptcy.html
westminster bonnaroo 2012 lineup twisted metal sea lion si swimsuit 2012 westminster dog show abe lincoln vampire hunter
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.