Having a bankruptcy notification on your credit report is one of the worst things that can happen, as it serves as a massive warning sign to banks, lenders, and other credit providers. Even though the actual period of bankruptcy can be as short as twelve months, the taint of it can remain on your credit report for at least six years, with credit blacklisting potentially lasting much longer. As a result, it is nearly impossible to obtain a loan or other form of credit during this period, not least because most lenders won't handle you if you disclose your bankruptcy, and concealing it is a criminal offense.
It is possible to obtain credit after your bankruptcy has been discharged by the court, although it is difficult. The key is to demonstrate to lenders that you can be relied upon to repay the money you borrow and that you are responsible with your borrowing. Joining your local credit union and saving regularly can be beneficial, as credit unions frequently offer loans to members who have demonstrated financial responsibility. You should also obtain a copy of your credit report from one of the main credit reference agencies, such as Experian or Equifax, and thoroughly review it to ensure that your discharged debts are accurately reflected. If they are not, notify the agency so that a correction can be made; since this is what lenders will look at when conducting a credit check, it's vital that it accurately reflects your current credit standing.
After completing these steps, you can contemplate applying for credit again. Rather than applying for multiple loans and credit cards, which are likely contributors to declaring bankruptcy in the first place, find one whose repayments you can afford and adhere to it, using the consistent monthly payments to begin rebuilding your credit score. Ideally, you should utilize the services of a reputable loan intermediary with access to a vast network of loan companies; they will be able to assess your situation and recommend the most suitable products. It is preferable, however, to find one that only charges a fee after you have been approved for a loan, as you do not want to pay for a service that ultimately results in a series of denied loan applications.
However, only after your bankruptcy has been discharged.
Since a bankruptcy can remain on your credit report for six years, it may be extremely difficult to obtain.
Possibly more accessible if you begin repairing your credit score by saving money.
Should be handled responsibly to prevent additional problems in the future. May be simpler to obtain through a reputable loan broker with no up-front fees.
Copyright: Personal Finance (2010)""
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