Copyright (c) 2010 Liz Roberts
Many credit consumers think that it is very difficult to get approved for financial assistance after filing for bankruptcy. After all, a bad credit report, especially one that contains a bankruptcy mark is enough to cause a lender to turn down a borrower’s application for credit.
But such notion is a thing of the past. Consumers can now easily rebuild their credit reputation and be granted the financing deals they need, even during the term of their bankruptcy. How come?
It might be true that a bankruptcy mark can lessen your chances of getting approved for a new credit card or loan but keep in mind that this mark does have long-lasting effect on your credit standing. In fact, you can be eligible for low interest loans, even while you possess a bad credit report.
Still, you can only be granted the credit accounts you need so long as you begin repairing your credit history today. How can you do this? Below we have discussed four steps that can help rebuild your credit reputation and allow you to bounce back from bankruptcy.
Four Steps on How You can Bounce Back Right After Bankruptcy
1. Change your mindset regarding bankruptcy. Remind yourself that bankruptcy cannot influence your life forever. The truth is that the effect it has on your credit score can only last for seven years. After this period, it can no longer generate a negative effect on your credit report. You can even see this for yourself. As soon as your bankruptcy mark has been dropped from your records, request for a copy of your credit file from the three credit reporting agencies. By then, you will see a better credit score than what you once had. Your new and improved credit score will surely help you get the approval from lenders.
So, change your mindset regarding bankruptcy and for sure you will realize that bouncing back from bankruptcy is indeed possible.
2. Learn from your experience. If you think that you financial problems started because you are an irresponsible and impulsive buyer, then you should make changes from now on. On the other hand, if your problems can be attributed to the recent financial crisis, then make it a point to establish a savings or contingency fund. This way, your bankruptcy can give you an opportunity to figure out what went wrong with the way you manage your finances so that you can fix it immediately.
3. Review your Credit Records. Always obtain and check the credit records you have with the three credit report firms: Experian, TransUnion and Equifax. As soon as your credit file arrives, see to it that you carefully review all the entries listed on your credit report. Check if there are credit accounts that were not discharged under bankruptcy. If there are credit obligations that are retained on your file, immediately file a dispute letter with any of the three credit reporting agencies. By doing so, you can prompt the credit bureau to investigate your records and eliminate the errors that you have encountered on your credit file.
4. Get new forms of credit. Many consumer experts suggest that those who have filed for bankruptcy must immediately apply for a revolving credit line and an installment loan program. This way, they can have two credit accounts that they can manage responsibly so that they can prove to lenders that they can once again be entrusted with credit lines.
Still, these borrowers must ensure that they make prudent and complete payments of their credit charges each month. In so doing, they can cause immediate improvement on their credit standing and eventually rebuild their credit reputation.
New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989.Looking for a credit card, feel free to read our credit card reviews. Click here for the list of credit cards for bad credit.