Once people have decided to claim bankruptcy, the first question often asked is what happens to their credit afterwards. Many people think that claiming bankruptcy puts you on a blacklist that means you can never again get credit. But, that just isn't the case.
However, claiming bankruptcy will do a "number" on your credit. But, it is important that you realize that the damage done is not forever and that you can rebuild your credit and your financial standing with the right attitude and information on how to do it.
Here you can find more specific information about getting post bankruptcy mortgages, mortgage refinancing, credit cards, car loans, personal loans - as well as information about credit repair and your credit report after bankruptcy.
You can also find many books on the subject that offer solid information on getting your foot back in the proverbial credit door and how to keep increasing your credit worthiness. A few reading suggestions are listed below:
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Bounce Back From Bankruptcy 3rd Ed. : A Step-by-Step Guide to Getting Back on Your Financial Feet
by Paula Langguth Ryan
Credit After Bankruptcy: A Step-By-Step Action Plan to Quick and Lasting Recovery after Personal Bankruptcy
by Stephen Snyder
Yes, You Can Get a Mortgage: Even If You've Had a Bankruptcy, Foreclosure, or Other Credit Issue
by Brian I. Sacks
The Complete Idiot's Guide to Surviving Bankruptcy
by Carol Costa, James R. Beaman
Beware of outrageous claims when trying to rebuild your credit. There are many scam artists looking to take advantage of your misfortune. There are credit card companies, mortgage companies, car dealers and other creditors that may try to use your bankruptcy as an excuse to charge you sky high interest rates.
Getting a new credit card after claiming bankruptcy could help improve your credit. Many people find they are able to get secured credit cards after bankruptcy. By making small purchases on your credit card and paying off the balance each month and NOT making minimum payments on it, you are showing creditors that you are capable of being trusted again. It takes time, but can help you rebuild your credit.
There are many other ways you can help improve your credit rating after bankruptcy. The books above will be your best bets on learning what they are in depth and which ones apply to and can help you personally.
Also be sure to take a look at your financial present as well by opening a bank account with a small credit union (which is usually without the big fees and minimum balances of bigger banks) and depositing what you were paying on your credit cards into a savings account. This will help you build a cushion that can help prevent being overwhelmed by bills in the future.
The most important thing to remember after filing bankruptcy is to be sure to be sensible when making any purchases on credit and to not allow yourself to get over extended on credit again and in the same situation that caused you to claim bankruptcy in the first place.
