Debt Consolidation Loans

In the past, filing bankruptcy was like having a Scarlet Letter on your chest. Bankruptcy made people outcasts and pariahs. It was as if a contagious disease struck, and no one wanted to be near you for fear of infection.

Today, bankruptcy doesn’t quite have the stigma it used to. Many of the world’s most successful people have filed for bankruptcy. These people hit rock bottom, and have bounced back to become wildly successful.

To emerge from bankruptcy requires diligence and discipline. In order to get back on your financial feet, you must rebuild your credit.

If you filed a chapter 13 bankruptcy, you had to make your court-ordered payments until the bankruptcy was satisfied. Even though you made great strides financially by doing so, lenders don’t see it quite that way. Lenders don’t consider your bankruptcy payments as a way to rebuild your credit. In fact, the “rebuilding credit” clock starts after it’s discharged, no matter how long it takes you to pay while in chapter 13.

If you filed a chapter 7 bankruptcy, rebuilding won’t take quite as long. When you file for chapter 7 bankruptcy, your debts are essentially wiped out, and you start all over. Once your chapter 7 is discharged, which usually takes a few months from when you filed, your rebuilding credit clock starts.

When you file for chapter 7 bankruptcy, you have the choice of reaffirming some of your debt. In other words, you can choose to keep some of your credit lines open instead of having them wiped out. This is an option you might want to consider, especially if you have smaller credit cards with low balances (under $500). By continuing to pay your reaffirmed debt, you can help rebuild your credit with timely payments and low balances.

Regardless of which bankruptcy you file, there will come a time when the bankruptcy is fully discharged. It’s almost like being free after years in prison - you made some mistakes, you paid for them, you (hopefully) learned your lesson, and you’re looking to make a fresh start. Now, you have to rebuild your credit.

Paradoxically, you need to obtain credit to rebuild credit, but you can’t obtain credit if you just invalidated your creditors. One of the best and most popular ways to begin the process is to obtain a secured credit card. With a secured credit card, a credit company will extend you a credit line in exchange for a cash deposit. Your credit limit is usually equal to, or a percentage of, your deposit. Rarely, if ever, will it be higher than your deposit.

These credit cards are not hard to find. In fact, since bankruptcy is public record, many of these companies will find your name at the county courthouse and send you a solicitation to apply. You must be careful when dealing with these companies. Some are notorious for “kicking you when you’re down.” In addition to the deposit, they will charge you exorbitant junk fees and interest rates. Always read the fine print in the solicitation. As required by law, they must disclose their fees and rates to you.

As well, make absolutely sure that the credit card company actually reports your payment history to the three major credit bureaus. Getting a secured credit card is worthless if your history isn’t reported. It’s worth repeating that you must find out if they report to all three bureaus, as opposed to just one or two. You will handicap your rebuilding efforts if the history does not show up on all three.

Lastly, make sure the credit card is an actual Visa or MasterCard. Some credit companies offer credit cards that are only usable on their own products. They look like real credit cards, but if they’re not Visa or MasterCard, you can’t use them anywhere of consequence.

Once you have discharged your bankruptcy, obtain a copy of your credit report from the three major bureaus. In order to start your rebuilding credit campaign, you must know where you stand. Filing bankruptcy will have a tremendous impact on your credit scores. When you know where your score stands, you can take the necessary steps to boost them in the shortest possible amount of time.

About The Author
Frank Bruno has spent the last 3 years assisting hundreds of clients in saving thousands of dollars in Interest rates by teaching them unique techniques on how to quickly and dramatically raise their credit scores. For more information please visit his website- http://www.CreditScoreBooster.com.

Tags: money, bad credit, debt, avoid bankruptcy, debt problems

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One may be tempted to sit back and do nothing about an after bankruptcy credit repair because the argument is that the bankruptcy stays on one’s file anyway for ten years. What’s the point then of carrying out an after bankruptcy credit repair?

That kind of nonchalant or indifferent attitude may even get you in deeper trouble. Usually, someone who is proactive and cares about his financial rating is going to do something to his advantage right on day 1.

Why?

To re-establish credibility of course. To mend whatever is broken, and to maintain good relations with your bankers, creditors and anyone who is in the most subtle position to influence how your financial picture will look like from now on. An after bankruptcy credit repair is therefore intelligent planning on your part. And the sooner you do it, the better it is for your credit score. It may be a slow, excruciating process, but with time, people will realize you mean business and are doing everything to get back on your feet. After all bankruptcy is no longer the rare disease it once was. Your next door neighbor could have filed for bankruptcy and your gym coach may have done the same thing.

After bankruptcy credit repair: something beyond your capability?

Since bankruptcy is considered somewhat of a drastic move in the money scheme of things, and a bit of a complicated issue involving a set of dynamics different from a straightforward credit repair matter, you may consider a lawyer-assisted credit repair. He may be able to guide you on what steps you can take when the bankruptcy is put on your record and resides there for the next 7-10 years. Or his partner may know of a credit lead repair that many people still do not know about.

Before you rush over to your lawyer’s office, however, you may wish to make a pit stop at the credit bureau and see if you could obtain a copy of your latest credit report. You are allowed one free credit report per year - that’s the law - and if you note some discrepancies, you may want to discuss these with your lawyer.

After bankruptcy credit repair is like waking up the next morning after a hideous nightmare. But the idea is to keep moving, facing front, not back. Start by making timely payments on all debt, temper your credit card use, and consolidate all debt. Speak to your creditors - yes - even after you’ve filed for bankruptcy. Who knows, once they see that you’re diligently doing after bankruptcy credit repair, they might be more predisposed to removing negative information from your file.

The above are just a few of the ways that prove you’re making an effort for after bankruptcy credit repair.

Guy Ray is an established author with more tan 200 articles to his credit.. If you’d like additional information about after bankruptcy credit repair visit his website at http://www.all-credit-repair-tips.com.

Tags: consolidation, consolidate debt, debt problems, bankruptcy, get out of debt

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