Is My Credit Score Ruined Forever After Filing Bankruptcy?

Is My Credit Score Ruined Forever After Filing Bankruptcy

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The major disadvantage of filing for bankruptcy is that your credit score will be quite low for a while. The importance of a good or decent credit score will determine if you can ever apply for a loan on a car, house or even a credit card. Since just about any transaction in this economy is based on the credit score, take every effort to increase your credit score, even if you have filed bankruptcy.

Reparing your credit score post bankruptcy can be accomplished rather easily and is unquestionably attainable. Just 1 month after receiving my bankruptcy discharged, I received a preapproved credit card application from Capital One Bank. Capital One knew about my bankruptcy as stated in the preapproved letter and did not care that I have a little mar on my credit history. I received my first credit card post bankruptcy and has been working towards increasing my credit score. It is possible to restore your credit score because I am the prime example of it. After filing for bankruptcy, I did not even bother to check my credit score, because I know it will be extremely low. After 15 months of credit repair, I managed to get my credit score to 750.

Why wait to fix your credit when you know your credit score will be damaged once you have filed for bankruptcy?

Rebuild your credit history by acquiring a secured credit card

Secured credit card is relatively easy to obtain because it has to be paid in advanced, and you can only spend what your account balance holds. Secured credit card will not allow you to spend more than you have balance for in the card. Use your secured credit card on expenses such as your monthly bus ticket when you commute to work. If the monthly bill that you are paying using the secured credit card is $75, remember to reload the secured credit card $75 or more per month. You want to use this method to fix your credit score over a period of 12-15 months in order to establish your credit worthiness. If you can prove to the lenders that you are responsible for the debts you have incurred, you will see your credit score increase over time. Do not worry if you cannot get a secured credit card. A lot of secured credit cards are aimed towards people with bad credit history so you will more than likely get one.

Try to apply for an unsecured credit card some time after using your secured credit card

Unsecured credit card is issued by the lenders based on your income and your credit history, therefore it is more hard to get if you have just gone through the bankruptcy process. The reason why you should apply for an unsecured credit card is because you have already established a good credit history months leading up to the application.

Take precaution not to "max out" your secured or unsecured credit card when you want to repair your credit score. Lenders want to see that you are using your credit line frugally and that you can pay it off on time. When they are convinced you have the ability to pay off what you are spending, your credit score is bound to rise over time.

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