Many consumers are finding it easier to reestablish credit after filing
for bankruptcy. After receiving a discharge, most debtors will begin
receiving advertisements from lenders offering to finance homes,
vehicles and credit cards. The most important way to reestablish your
credit is to stick to a budget so that you do not get into a financial
bind again. Here are some additional tips:
1. Consider opening a
checking and savings account. Some lenders look at this to determine if
you can responsibly handle money. Being able to pay bills from a
checking account is also much more convenient than paying with money
orders.
2. Consider applying for applying for store and gas
credit cards for purchases for which you would normally pay cash. These
cards usually have small limits and can help you restore you credit,
but only if you have the discipline to set aside the money to pay the
bill each month.
3. Consider applying for a secured card where
you deposit cash and charge against it. If you borrow money for short
periods of time and pay it back, this will reflect positively on your
credit report.
4. You MUST pay your utility bills and rent on time for at least a year.
5. If possible, find a friend or relative to cosign for you on a loan and pay it on time.
6.
Look for car dealers and mortgage brokers that attest to being
"bankruptcy friendly". Buy a used car on credit so you do not get hit
with the depreciation that occurs during the first two years of a new
car purchase.
7. Stay away from payday loans that are at high interest rates and are a bad credit trap.
8. Write a letter to each credit reporting agency explaining the circumstances that lead to your bankruptcy filing.
9.
Live within your means. Do not unnecessarily increase your
debt-to-income ratio by taking on credit to purchase luxury items that
you DO NOT NEED. Your payments on consumer debt should equal no more
than 20% of your expendable income after costs for housing and a
vehicle.
10. Pay your reaffirmed, pre-bankruptcy debts on time.
Source: http://www.chs-law.com/2008...