Bad Credit Tips – Credit After Bankruptcy

Bad Credit Tips For After Bankruptcy

When your bankruptcy has at last been discharged by the federal courts and you have the papers in your hands, then what? How can you go about repairing your credit? The first thing is to keep in mind why you filed bankruptcy in the first place. You don’t want to end up in another bankruptcy situation. The first step is to begin to re-establish your bad credit after bankruptcy, but where to start.

Your Credit Report

Ordering your credit report from the big three credit bureaus (TransUnion, Equifax and Experian) so you can find out exactly what’s on your credit report and why.

To start you must learn about your credit rating, even if your credit score is lower than you’d like it to be, it is much nicer to now it than being in the dark about it. If you in no way keep track of your credit report, you can’t know what’s on there that shouldn’t be, and if it isn’t supposed to be there, that may well be bringing down your score. You have the right to have anything that is inaccurate investigated and if found inaccurate, removed. That’s the first thing, getting your credit reports cleaned up so that they reflect correct information.

You Must Pay Your Bills

Most people think, “I’ve got a bankruptcy, I have no credit and it just doesn’t matter.” This is not the case, it really does matter. Repairing your credit after bankruptcy isn’t that hard and you can probably do it quicker than you think. But you have to pay your bills, on time every time. Do not start taking on any more debt that you cannot repay. This is the first step to rebuild your credit.

Applying For Credit After Bankruptcy

By no means should you do it, applying for any kind of credit, but especially with an already low credit score. The reason being, every time a lender makes an inquiry to the credit bureaus on your behalf it will lower your credit score even further. You really can’t afford that at this point in the game.

Know this, applying for any one loan can spawn many inquiries to the credit bureaus. A lot of businesses will present your credit application to many different lenders generating many more uncalled for inquiries. With each one lowers your credit score.

Credit Card – Yep Get One

Are you nuts get a credit card? Credit cards are what got me into this mess.

Not entirely true, the credit card just sits unless you use it, so really you got yourself into this mess not the card. There are several types of credit cards for people with bad credit and you can be qualified for one. Now at this point in trying to repair your credit it will in all likelihood be a secured card but that’s ok.

The point is to get some helpful information on your credit report. If you want to rebuild your credit after bankruptcy, getting a credit card even secured, is not so you can go crazy shopping. (Don’t forget why you’re here) Use your new card easy and pay it off in full on or even before the due date. If you can’t make that happen in any given month don’t use it.

Get A Car Loan – Easy and Smart

Are you out of your mind? A credit card now a car loan. If you want to rebuild your credit this is a great way for you to do it. You must get as much good information on your credit report as possible. Get a car loan. You may need a little money for a down payment but know you can get a car loan right after your bankruptcy has been discharged.

Bear in mind the part I said paying your bills on time every time. Start small get a car you know you can make the payments on without any problem. Don’t go to a buy here pay here auto dealer though, they commonly do not report to the credit bureaus. There are auto dealers that use lenders that specialize in getting loans for people with a discharged bankruptcy or bad credit. Find a dealer and buy a car you can pay for every month on time. Don’t be embarrassed to tell the dealer about your state of affairs, this will make buying a car a lot easier in the end. Ask the dealer so you know if the lender they use reports to the bureaus.

The interest rate is going to be high. But you making payments on time every time will show good on your credit report. If you have extra cash flow in any given month to make extra payments you’d be wise to do so. Paying your car off early, if you can, will only help you out in repairing your bad credit. Then and only then trade it in and do it again. By now you’re well on your way to reestablishing your credit

In Closing

Filing Chapter 7 or 13 bankruptcies is not the end of your good credit, it only appears that way. You can pull through but you must be disciplined and patient. You didn’t get here in a couple year and you can’t fix it in a couple years either. If you pursue these steps you will be well on your way to better credit. It just takes effort on your behalf and some time to repair your credit after bankruptcy.

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Simple Credit Tips For Students

There is no question that having a good credit record is more significant these days than ever before. We may be aware of it or not, but the truth is that most of the financial aspects in our lives are very much dependent on our credit scores. As students in need of taking student loans, there are several credit tips for students that will make it easier to maintain a clear credit background.

-Open checking or savings accounts.

If you wish to start a credit record the right way, it is best to initially have your own checking or savings account. This will prove to be very beneficial and useful in the end. You then had better get yourself a student credit card. But make no mistake about it; you are not supposed to use your credit card to enjoy spending. You will be using your credit card only on things that are necessary. One of the best credit tips for students that you will find everywhere is to let your credit value and reliability increase through the help of the transactions you make every day.

-Never get multiple credit cards.

You are a student and you should realize the fact that there isn’t so much need for you to spend so much money. If you have one credit card and you use it to buy only the things you need, then that should be enough. While the credit limit of a student credit card is rather low, you can certainly get higher limits as you consistently pay off your dues on time. This is always one of the credit tips for students because it has been proven many times that letting a student have more than one credit cards leads to future credit and financial problems.

-Set your budget and stick to it.

This is definitely among the most challenging and vital credit tips for students, because it would need you to have self-discipline to be able to maintain this. Have a list of all your expenses in a month, putting the most important expenditure first. This will remind you of what you need to prioritize when it comes to budgeting. Make sure also that you do not spend money on things not included on the list.

-Be a responsible payer.

Always make it a point to pay all your credit card debt on time. Try to develop the attitude and habit of gaining satisfaction from paying your debts. It doesn’t matter whether you are a day or a month late in paying your dues, as either case will definitely affect your credit record negatively. Paying your bills on time will also increase your chances of being granted higher credit limits, which is a good result of following these credit tips for students.

-Regularly check your credit reports.

Although you are just a student and you don’t have a significant credit history yet, you are still a potential victim of identity theft. See to it that nothing strange is taking place in your credit record by checking on even one of the credit bureaus every once in a while

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