Filing for a Dallas bankruptcy is an incredible opportunity for the fresh financial start you’ve always wanted. However, getting lenders to trust you with credit again can potentially be a challenge. Once you understand how to appeal to lenders after bankruptcy, you’ll be able to prove that you’re now a low credit risk. With proper money management, you can rebuild your credit and achieve financial stability over time. Your bankruptcy provides you with an opportunity to develop new financial habits and money management skills—now it’s time to prove you’ve developed those habits and skills to lenders.
How to Showcase Money Management to Lenders
After you file for bankruptcy, some lenders will be cautious about lending you new credit. But if you know how to handle their questions and prove that you have improved your money management habits, you’ll be able to not only get new credit, but also raise your credit score over time. Common money management questions lenders will ask you include:
Has your debt been discharged? Lenders don’t want to know that you’ve begun or are in the process of filing bankruptcy. In other words, they want to know that your bankruptcy is complete. This is an important consideration for lenders, because if your bankruptcy hasn’t already been discharged, you could technically still add debt to it. Be very clear with potential lenders that you’ve already completed the bankruptcy process.
How have you paid your bills since then? After bankruptcy, lenders will want to know whether you’ve taken advantage of the opportunity to establish new money management habits. Be sure that you’ve paid all your bills on time (early if you can!) so that you have something positive to report to lenders. No matter what, you cannot afford to be late—or miss payments.
Have you worked to rebuild credit after your bankruptcy? Proper management of your finances, including your home mortgage, care loan, lease, credit card, gas card, student loan, and much more can rebuild your credit. What does your money management say about you?