Wealth management solutions – Despite the fact that filing chapter 7 shows on your credit report for up to 10 years, you’ll still want to get the best credit card after bankruptcy discharge. Lower interest credit cards for people with bankruptcy can help you to manage your finances, save money and rebuild your credit score. This is one of the best wealth management solutions. Although you won’t qualify for the best card deals immediately, a bankruptcy credit card will help you to qualify in the future. The more punctual repayments you make, the better your credit rating will become.
How to Get the Best Credit Card After Bankruptcy Discharge
With respect to wealth management solutions you can get a card shortly after being discharged, but the terms won’t be as favorable as they were before you filed chapter 7. If a lender doesn’t use the Fair Isaac credit score formula, the cost of borrowing will be a lot higher. If you didn’t have any past credit indiscretions, you wouldn’t need to avoid a credit check. Lenders know this and appreciate that they are helping customers with a higher statistical probability of defaulting on the agreement. The terms of borrowing reflect the risk faced by the lender.
Unsecured Bankruptcy Credit Cards
Default rates are far higher when a customer has a bad credit history. An unsecured post-bankruptcy credit card doesn’t necessarily charge a high rate of interest as this puts customers off signing up. They tend to include more fees and charges which you’ll probably need to settle before using your new card. You’ll also tend to find that your new credit limit tends to be on the low side, possibly just $250. However, after making timely repayments for a six-month period, your limit can be reassessed.
Secured Credit Cards After Bankruptcy
If you’re looking for the best credit card after bankruptcy discharge following wealth management solutions, a secured credit card could provide the optimal solution. The credit limit on an unsecured bankruptcy credit card is low so providing collateral helps you to get a higher limit. A discharged bankrupt provides the lender with a cash deposit or property which means that the lending risk is minimal. Although your collateral is now at risk, you receive enhanced lending terms than would have otherwise been available to you.
Best Bankruptcy Credit Cards to Rebuild Credit Scores
If you are in a position to offer the lender collateral, secured credit cards offer you a higher credit limit, a lower rate of interest and impose fewer charges, says wealth management solutions. You should seek to use no more than 30% of your allocated credit limit in a single month. This is to reduce your credit utilization figure as lenders want your credit repayments to be affordable to you. You don’t want to appear to be stretched financially.
In terms of wealth management solutions, if you don’t have any money or property to secure the debt, an unsecured credit card for discharged bankrupts could still help you. Provided that you pay on time, your credit limit will be reassessed after six months. In the short term, the best credit card after bankruptcy discharge is only suitable for improving your credit score. Make a series of punctual repayments and this will change.
How to Recover from Bankruptcy By Fixing Bad Credit Scores
In order to recover from bankruptcy in terms of strategic financial planning, it is important to proactively seek to improve credit for a better credit score. An adverse credit history not only makes borrowing money more difficult, it could also increase the cost of insurance and make it more difficult to get certain jobs. Chapter 13 and chapter 7 bankruptcy will show on personal credit reports for 7 and 10 years, respectively. However, credit repair after bankruptcy means that a higher credit score can be achieved in a fraction of the time.
Fixing Bad Credit By Removing Credit Report Errors
It is a reality for many discharged bankrupts that some of the debts that have been eliminated by filing for bankruptcy still show as open, overdue financial obligations. The amount of money owed is a vital factor so it is important to get any issues corrected as soon as possible in strategic financial planning.
Request a free credit report and request that these errors are removed under the Fair Credit Reporting Act. Check the records for each credit reference agency as each set of records is completely different.
Provide the credit reference agency with any paperwork from the bankruptcy agreement. This is proof that the debt has been eliminated and should no longer show as active.
Although not necessary, the services of a credit repair attorney can achieve the same objective. This can be useful if certain creditors are proving unhelpful. A variety of services are offered for a set monthly fee.
Recover from Bankruptcy By Paying Other Debt Punctually
If a better credit score could never be achieved again in terms of strategic financial planning, there would be no incentive to ever pay a bill on-time again. Whilst filing for bankruptcy will cause a score to plummet, credit repair after bankruptcy can be achieved by repaying new and existing credit arrangements on-time.
Installment debts. Whilst most unsecured debts will have already been written-off, certain secured debts – mortgages and car loans – will have been reaffirmed under the 2005 bankruptcy laws. Continue to make timely repayments in relation to these debts and student loans and this will lead to a higher credit score.
Revolving debts. Consider getting a secured or unsecured poor credit card as a source of revolving debt will help with fixing bad credit scores. Avoid using more than 30% of the overall credit limit in any one month – less than 10% is optimal.
Fixing bad credit scores will happen more quickly if timely repayments are made towards a source of both installment and revolving debt.
Credit Repair After Bankruptcy Means Qualification for Finance
Although it is possible to recover from bankruptcy more quickly in strategic financial planning, this won’t happen overnight. Although credit history repair is a gradual process, it is possible to qualify for secured credit cards, poor credit car loans and cash advances from specialist lenders straight away. The problem is that the high risk of default means that the APR is normally extremely high. After a period of 2 to 3 years of fixing bad credit scores, it may also be possible to get a bad credit mortgage.