Bankruptcy Myths #4: I Will Never Be Able To Get Credit

It is common to be concerned about your credit and even more so after a bankruptcy. Although you will face some credit challenges after a bankruptcy, your future in credit is not ruined. The truth is, there are plenty of lenders that offer credit to consumers post-bankruptcy.

Getting Back On Your Feet

The best way to take steps towards obtaining credit after bankruptcy is to begin repairing your credit. This takes time and effort. You will need to be sure your information is up to date on your credit reports and that you have all of the necessary documents showing your accounts are no longer delinquent.

While you are working towards obtaining new credit, begin looking at your money management skills. Even though many people end up in bankruptcy through unexpected financial hardships, many of us could improve in how we manage our money each month. Set a budget and begin setting aside the money that will, in the future, be allocated for paying a new line of credit. This will help you save money while you are waiting for approval on a new line of credit.

After a bankruptcy you may feel undeserving of credit, which could lead to poor choices. Just because you filed for bankruptcy doesn’t mean you should accept the first credit offer that comes along. Just like any consumer, shop around and compare lenders. Find the best interest rate that you can on a line of credit. Once you have been approved, make it your goal to maintain a small and manageable balance that you can afford. Make timely payments and minimize any additional credit for at least 6 months to a year.