Life After Bankruptcy: Qualifying For Credit & Loans
Written by: R. Lawrence Anderson
When it comes life after bankruptcy, most people are concerned
with how it will affect their credit rating - and their ability
to qualify for credit and loans as a result.
It's a legitimate concern and one that should be addressed. With
that in mind, this article will discuss life after bankruptcy,
and what you can expect.
First, let's assume your bankruptcy has been discharged. Your
credit score will have been negatively impacted by your
bankruptcy, as well as any other negative items appearing on
your credit report. So what can you do?
The first step in your life after bankruptcy should be to
rebuild your credit and increase your credit score. This is
important for two reasons: First, it can mean the difference
between qualifying or not qualifying for credit and loans.
Second, it can potentially lower the amount of interest you pay
- depending on how much you are able to increase your credit
So how can you rebuild your credit and increase your credit
score? Start by making sure to remove any inaccurate or obsolete
negative information from your credit reports. This takes an
investment of time on your part, but it is worth the effort.
Another way to rebuild your credit history, and improve your
life after bankruptcy, is to keep all of your accounts current
-especially those which are reported to the credit reporting
agencies. Over time, this will play a key role in rebuilding
your credit history and helping you to qualify for credit and
For example, let's suppose you want to apply for a home loan
after bankruptcy. Generally speaking, among other criteria,
lenders want to see that you've paid your accounts in a timely
manner over the last two years or so since your discharged
bankruptcy. If you've had any late payments placed on on your
credit report since your discharged bankruptcy, it could hurt
your chances of qualifying for a home loan. So to improve your
life after bankruptcy, make a commitment to keep all of your
In After Bankruptcy Credit Solutions, I cover a total of nine
ways to increase your credit score after bankruptcy. I also
explain how to clean up your credit reports. There's not enough
space here to cover them all, but I mention them because you
should know that there are a number of ways you can rebuild your
credit and increase your credit score.
What about life after bankruptcy when it comes to auto loans?
There are a number of lenders and dealerships that will finance
someone with a discharged bankruptcy. You just need to know
which ones to approach, and how to get the best interest rate.
You may also need a larger down payment depending on your
overall financial and credit situation.
What about qualifying for a credit card? Well, in this arena
life after bankruptcy isn't too difficult if you go with a
secured credit card. A secured credit card is "secured" by a
special savings account you establish with the bank issuing the
credit card, which serves as collateral for the credit line they
By the way, many of the banks issuing secured credit cards don't
even run a credit check on the applicant. That's why I say that
life after bankruptcy isn't difficult when it comes qualifying
for a secured credit card.
The secret is knowing which ones are the best credit cards after
bankruptcy. As a starting point, only consider credit card
issuers that have reasonable fees, and which do charge
excessively high interest rates. If you have a criteria to apply
to potential credit card issuers it can help you narrow down
your choices very quickly and make life after bankruptcy easier.
Hopefully, this article has given you an idea of what to expect
when it comes to life after bankruptcy. We also looked at
actions you can take to make your life after bankruptcy easier
when it comes to qualifying for credit and loans.
Copyright (c) 2006 Innovative Solutions Publishing, Inc. All
This information is designed to provide only a general overview
of the subject matter herein.
This information is provided with the understanding that neither
the publisher nor author is engaged in rendering legal,
accounting or other professional advice. If legal or other
expert assistance is required, the services of a professional
should be sought.
Neither the publisher nor author shall be liable for any loss or
damages, including but not limited to special, consequential,
incidental or other damages, caused by the information contained
About the author:
R. Lawrence Anderson is author of After Bankruptcy Credit
Solutions, which shows individuals how to qualify for credit and
loans after bankruptcy. For details visit:
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