Credit problems do not disappear on your credit report quickly. When you file bankruptcy, that can stay on your credit report for ten years. Missing and late payments or defaulting on your debt can remain on your report for seven years.
Check Your Report
Check your credit report to ensure accuracy. If there is a debt on there that is not yours or not accurate, you can dispute it with the credit agencies.
Soon after your bankruptcy case is completed, you will start to receive offers of credit. These offers usually come with high-interest rates and unfavorable terms. If you are patient and pay your bills on time, your potential lenders will see that you can manage your money better.
Shop around for lenders if you are in the market for a large ticket item. Don’t assume that since one creditor says you are a bad risk, others feel the same. Check for the best interest rates you can qualify for and don’t take the first offer. Beware of the “No Credit, No Problem” lenders. They will usually be a high-interest rate and long term payments.
When you are shopping around for lenders, include a letter explaining your past financial problems and the measures you have taken to correct them.
Don’t be too eager to obtain new credit, but getting a low balance credit card and paying it off in time or before each month can show your potential lenders that you have developed better financial habits. Getting too many small cards at once, though, leads the potential lenders to believe you may be overwhelmed in debt.
If you have questions about bankruptcy and if you will be able to obtain credit afterward, contact a McAllen bankruptcy attorney today.