post bankruptcy loans
Post bankruptcy credit repair
In the wake of the financial crisis and the collapse of the housing market, bankruptcy filings have risen dramatically. Despite the fact that bankruptcy was made considerably more difficult by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, by late 2008 bankruptcy rates had returned to pre-2005 levels. This means that there are many people in the United States that now have bankruptcies on their credit reports.
Though a bankruptcy has a devastating effect on a person’s credit scores, these effects are not permanent and the savvy consumer can even begin rebuilding their credit immediately after the bankruptcy. Generally speaking, a bankruptcy stays on an individual’s credit report for ten years; however, it is possible to have a good credit rating even before the bankruptcy is removed.
The first step after the bankruptcy is concluded is to get a copy of the credit reports from each of the three major credit reporting agencies: Equifax, Experian, and TransUnion. By law all U.S. residents are entitled to one free report from each company every year, but a person can also simply apply for a loan that they know they will be denied due to the credit report. If a person is declined for a loan based on their credit report, the relevant credit reporting agency has to provide the person with a free copy of their report.
Learn More About Repairing Credit Rating Here…
The reason for getting copies of the credit reports is that after a person’s debt has been discharged by the bankruptcy court, it is frequently not removed by the credit reporting agencies. This means it is up to the individual to have all their discharged debts removed from their credit report. Failing to do this will mean that these debts will continue to show as valid on their credit reports even though they were discharged by the bankruptcy courts.
After cleaning up the credit reports to accurately reflect the bankruptcy, the next step is to obtain a secured, or prepaid, credit card. These basically work like debit cards and are available to people with bad credit since there is nothing for the issuer to lose. Further, many of these cards charge outrageous fees, so they are quite profitable for the issuers. However, if the customer begins charging, making regular and timely payments and carries a very low balance, these cards directly contribute to improving the person’s credit score.
Within a few years, even after a bankruptcy, it is entirely possible to have a decent credit rating and to be deemed worthy of receiving real credit again. Many people find this surprising, but it is true nevertheless.
About the Author
Wendy Polisi is the founder of Credit Repair College. Credit Repair College empowers people to fix credit fast by educating them on all aspects of credit repair. Please visit them on the web to learn how to fix bad credit and take control of your financial future.
Article Source: http://EzineArticles.com/?expert=Wendy_Polisi
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