Thursday, July 21, 2016, PM | Leave Comment
The number of people who file for bankruptcy increases every year. It is not a secret that our economy has seen better days and a poor economic stance can affect the general population immensely.
In 2015 alone, more than one million people sought help from the bankruptcy court. If you have had to file for the court’s protection, do not be dismayed. You can rebuild your credit and be good as new.
However, it is very important, that your next steps are made to with the thoughts of improving your credit, and not continuing the downward financial spiral.
Use New Credit to Build Credit
There are always plenty of lenders who want to help you re-establish your credit. They will offer credit cards and various other forms.
Collateral loans, such as those offered by Sol’s Jewelry & Loan, are a great way to get a loan with a fair interest rate that is affordable.
These loans will report to the credit bureau each month and help to raise your score. Keep in mind that you will need to show consistent payments for about a year before your score will increase.
Read the Fine Print
While there will be many companies that offer you credit, make sure that you only take advantage of the ones that will help you, not hurt you.
There are numerous offers out there that require you to pay large activation fees and yearly service charges. They leave you with $50 left out of a $300 credit limit. You want a credit card that works for you not against you.
While building your credit is important, it is just as important that it is done in the right way.
Don’t Make The Same Mistakes Again
The goal with bankruptcy is to learn from the past and have a better future. If you have a hard time managing your money, get a financial adviser to help you.
Make a budget and learn to stick within its restrictions. The worst thing you can do is make the same mistakes again.
You can only file bankruptcy every eight years, so make sure you don’t repeat the same mistakes.
Some say that a couple of good items on your credit report can help you rebuild your credit in no time. Larger ticket items, like houses and cars, carry more clout than credit cards.
After about 24 months of consistent payments and good credit marks, even those who have filed bankruptcy can apply for a mortgage. Start small and ensure your credit decisions are wise.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing about personal finance and spending time with her dog, Max. Information credit to EZ Money, Cash Advance, Payday Loans, Payday Advance.