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Written by Joseph Durrett
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Making Wise DecisionsFor those looking to buy a home after bankruptcy, this ultimate form of credit is possible. Most lenders will require that you have worked on improving your credit n the time since your bankruptcy. You will need to wait at least two years to secure an FHA loan, which can help you get into a home faster and with a lower interest rate. Other lenders are available as well; each offering you a range of opportunities about 18 months to 2 years after your bankruptcy has been discharged.
The same is true for car loans. Most people will quality for a car loan about 18 months to 2 years after their bankruptcy was discharged. You will have to pay a much higher interest rate if you get a car loan at this time. Yet, you can use these loans to help you to rebuild your credit report, which can help you to get better credit cards and loans down the road.3 Tips For Rebuilding Credit After BankruptcyBe sure that you know what is on your credit report. All collections and discharged debts should be marked as discharged through bankruptcy. Keep an eye on your report every six months to yearly to make sure no mistakes are found there. This will help you build up a new history.
Use credit wisely. Do not carry a balance on any credit cards you have from one month to the next. Be sure to make all of your credit card payments on time each month. Never go over the limit and pay all fees according to the terms of service. Do not avoid using credit. The only way to rebuild your credit is with credit. Make wise decisions and over time, you will see a significant improvement.It may take some time to see credit interest rates improve for you after you file bankruptcy, but through good credit usage, it will happen sooner rather than later. |
