Many people find the need to borrow after completing a bankruptcy case. In fact, borrowing is exactly what needs to be done to repair the damage from your prior negative payment histories. However, not all credit is good credit after a Dallas bankruptcy case, and it should be pursued with caution.
Secured Credit Tips
It is important to remember that getting credit after you have written a negative payment history for yourself in the past can be tricky. However, a little patience and effort can put you back on track in no time.
First, clean up your credit report. Make sure that your accounts have been updated after your debt discharge in bankruptcy. If your newly resolved debt statuses haven’t been reported, request to have your creditor update your information.
Next, obtain an unsecured line of credit first. This is especially important if you had your debts resolved through a Chapter 7 bankruptcy case. Since your debts were not repaid in Chapter 7, future lenders may be hesitant to approve your line of credit. By starting with an unsecured line of credit, you can establish yourself as a responsible borrower for a few months prior to applying for a secured car loan.
Last, prepare for your secured line of credit by saving money for a down payment and shopping around for the best deal. Having money to put down can boost your chances of successfully obtaining financing from the right company. Don’t feel desperate, you can still get a good loan with good terms. Take your time in finding a company that can offer you the lowest interest rate on your car loan.