Bankruptcy Laws Designed to Protect Citizens, Not Hurt
Rebuilding Credit During/After Bankruptcy
Before reviewing the contents of this article on credit and bankruptcy, be advised that it would be wise to consult a local, qualified bankruptcy lawyer in your area. This is the best way to make sure that the information you apply to your situation is pertinent and based on the most specific facts that match your situation and the local state bankruptcy laws that apply to you. This website is not to be construed as legal advice for your situation.
Many folks who go through bankruptcy end up being surprised when they find out how fast the credit can recover if it is well-managed. Yet, attempting to get started to quickly when you’re over-eager for rebuilding credit can end up causing the exact opposite effect. Secured cards and other credit cards are simply not created equal. Some credible banking and lending organizations and financial institutions offer secured lines of credit which end up costing you hoards of money, just to get small credit lines that never benefit your credit much. Still, there are different lenders that are reputable.
In these situations where excessive amounts of card fees work against you and place your available line of credit in an immediately vulnerable situation before charging a penny. When you accepting credit offers just to begin establishing your credit rating again may cause you more harm to your scores than good over the long haul.
Here are some of the potential financial and credit pitfalls you may encounter after a bankruptcy:
- Predatory lenders flood mailboxes with low-quality credit offers. Don’t apply just because you receive an offer. Use your common sense and review the fees carefully.
- Directly after a bankruptcy, don’t get too down on yourself. You can rebuild your credit carefully and patiently and with time you’ll be able to buy a home or vehicle on credit if needed. If we have our way, we’ll do our best to convince you that you do not need to be beholden to the world of obtaining credit anyway. Even houses can be paid for in cash if you will work hard and do your best to save save save!