Just because you have filed for bankruptcy, that doesn’t mean you will be ineligible for credit in the future. Some argue that, in the early stages post bankruptcy, you are probably one of the best credit risks going around. You are almost debt free and you’re desperate to improve your credit score – in that situation, you are willing and able to repay any loans.

In practice, it can be hard to obtain credit post bankruptcy. It should be remembered that obtaining credit is not a right – it is a benefit that is earned by having a good financial history. Having said that, there is a whole new industry that has been built around helping people rebuild their credit scores post bankruptcy. Some of these new businesses are quite shady, and that’s putting it politely.

For most people, the first two years following the discharge can be the hardest. In reality, rather than looking for credit, people should be looking to rebuild their own financial confidence. Saving wherever possible, and avoiding credit wherever possible. We have become a society addicted to credit cards – break that addiction and you can move on in life.

After two years, it becomes a lot easier to gain a mortgage – and this is where saving as much as possible over those first two years becomes so important. Car loans become easier since the lender has the car as security. Credit cards are available although the credit line is often low and the costs, especially interest, are high.

As I mentioned, credit isn’t a right. Rebuild the financial components in your life and credit will become more available – in a worse case scenario, the bankruptcy information only remains on your credit record for ten years.

Related posts:

  1. What If Your Income Makes You Ineligible For Bankruptcy?
  2. Don’t Make These Mistakes When Contemplating Bankruptcy
  3. Four Mistakes People Make When Threatened With Bankruptcy
  4. Which Famous People Used Bankruptcy To Make A Fresh Start?
  5. Accessing Post Bankruptcy Credit Cards