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Buying a House After Bankruptcy Is Possible

Buying a House After Bankruptcy Is Possible
"""Many individuals have been led to believe that if a person declares bankruptcy, their credit will be devastated and they will never be able to purchase a home. These assertions are completely and wholly false.

In reality, purchasing a home after bankruptcy is possible. When you have had financial difficulties and had to file bankruptcy to regain control, you have not done anything that will forever define you. The filing of Chapter 7 bankruptcy, the most common form of bankruptcy, remains on your credit report for only 10 years. Not for eternity.

Also, credit repair after bankruptcy does not require a 10-year waiting period. As soon as you have resolved the issue that led to your poor financial situation, you can begin to rebuild your credit scores. At this point, you have a clear slate, with the exception of the bankruptcy appearing on your credit report. Therefore, reconstructing credit after bankruptcy is akin to starting from scratch, with no history of missed payments, repossessions, or defaults to hinder you.

One of the first steps you can take to reestablish your credit is to apply for a secured credit card. These cards require you to send in the sum that will serve as your credit limit, typically $250. This quantity is retained by the credit card company, and your credit limit corresponds to it. As with unsecured cards, the credit card company will send you a monthly statement with a balance due, minimum due, and due date. You make timely monthly payments, and the company notifies the main credit reporting agencies of your payment history. After a certain period of payments, the company may restore your initial deposit and convert your account to an unsecured one.

Second, apply for store credit cards. Store cards are typically simpler to obtain than other unsecured credit cards because they can only be used within the store that issued them. Once more, punctual payments are required for the credit score to begin to rise.

In addition to credit cards, you must establish credit with accounts that are not revolving. You must obtain a personal loan or an auto loan and demonstrate that you can pay it back according to the terms of the contract. Consider obtaining the loan from the bank with whom you do business, as they are already familiar with you. When you obtain one of these loans, you must pay more than the minimum monthly payment. If the monthly loan payment is $233, pay $253 per month. You will more than likely never miss the additional $20, but it will be applied to the principal balance. Therefore, it will reduce your principal, thereby reducing your interest and making it appear as though you paid off the loan faster.

It is possible to purchase a home after declaring bankruptcy if you remain determined from the day you submit.

" - https://www.affordablecebu.com/

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"Buying a House After Bankruptcy Is Possible" was written by Mary under the Finance / Wealth category. It has been read 75 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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