subject: Post Bankruptcy Credit- Restore Your Financial Status Even After Bankruptcy [print this page] Post Bankruptcy Credit- Restore Your Financial Status Even After Bankruptcy
Post bankruptcy credit is the process of restoration of the debtor's financial status. The bankrupt tries to fix his financial mistakes in order to accelerate his future financial growth and stability. Building credit after bankruptcy could be a challenging task, but is certainly possible through effective money management and control. The bankrupt must exercise strict control of all the financial activities, properly regulating the income and the expense. Aggressively follow the money control procedures to improve the credit score. Obtaining the advice of a financial counselor immediately after bankruptcy is essential to rebuild the credit status. The primary goal to get the advice of such expertise is credit repair after bankruptcy, which means analyzing the current situation and ensuring that all those debts are dismissed. A financial counselor will assist to set up an effective budget control curbing all thee unwanted expenditures. This is essential to build a strong savings account. Creating a budget that covers all the incomes and expenditures paves way for a good saving habit. The credit condition will start to get better within an incredibly short phase of time. The next viable option is to obtain secured credit cards. As a security for your credit limit open a savings account required by the credit card accounts. Many banks propose these types of accounts for people who are trying to improve credit after bankruptcy. When using the secured cards for credit revamp, the bank will inquire the borrower to deposit some amount into account with respect to the borrowing limit desired on the card. This system can be used for financial restore by making on-time expenditure for a few months and then close the card account within several months. Before applying for a post-bankruptcy credit card consider the following
1)Verify the amount of the application fees
2) Also check if any yearly renewal fees is included.
3) Clarify if any hidden charges and taxes are included
4) Scrutinize the credit scoring application thoroughly.
5) Try to obtain credit card with lower rate of interest. The shortcoming to this means of post-bankruptcy credit restoration is that the card account will be levied high interest rates, but with prompt payment and monetary control ,secured credit cards will severe beneficial in the long run. Obtaining a small financial loan will certainly help in rebuilding the credit status. Ensure prompt repayment of the loan to avoid any further financial instability. Request for a co-signer if the loan sanction appears to complicated and difficult. Ensure that the co-signer has a proven track of credit status. Obtaining bank loan can be easier if the borrower uses savings account as collateral security. Determination, time management and discipline should be strictly adhered in order to rebuild the financial position. Time is one of the most determining factor is regaining financial stability. Responsible usage of money with sensible financial control will improve the credit score, thereby offering a fresh start for the bankruptcy filers to regain the financial status.
