When your financial situation is bad, it can result in a dark cloud over almost everything. Once you make the decision to get your financial life in order by filing for bankruptcy, however, you will begin to see the clouds lift away. It might be difficult to imagine but you will be offered the opportunity to use credit again, so read on and get some tips for coping with those offers when they begin to arrive in your mailbox.
Get on very friendly terms with your credit report
You may have avoided having to look at this report in the last few months, but as part of your financial fresh start, you will need to monitor it more closely. There are now several websites that allow you to look at your report without charge as often as you need to and checking it frequently is a good idea. As soon as your bankruptcy is final, you'll notice the entry as a federal filing, and that entry will remain on your report for the next 10 years. In time, the impact of the bankruptcy will be downgraded by your other more positive moves to restore your credit.
Check your report for errors
Each and every creditor listed on your bankruptcy should be showing as "closed" once you have your final bankruptcy paperwork. If you find any creditors showing as open or late or anything else you must contact all three major credit reporting bureaus to report the errors.
Build your credit back up, but do so slowly and carefully
You might be surprised at how quickly you begin to get offers for credit cards, but at first, a lot of them should be filed in the trash can. Scrutinize the fine print on the offers and locate the following information before you apply:
- The interest rate on purchases and cash advances
- The late payment and over limit-fees
- Any yearly or even monthly membership fees
- Any other unusual fees or costs, such as a set-up fee or initiation fee.
If you do locate what looks like a good offer, be sure to leave plenty of space between your applications since each application will warrant a credit inquiry. Credit inquiries will impact your score negatively.
Consider a deposit card
Major credit card companies usually offer those trying to build credit an opportunity to do so by using a deposit account, and many of these offers are a good idea. You must send a certain amount of money to the card, and in return, you will gradually build your credit as you pay the money back. Make sure you understand the terms since you should not be having to pay interest or fees to use your own money in this manner.
To learn more about the financial fresh start you could see by filing for chapter 7 bankruptcy, you shoulder speak to an attorney.