This is the number one question I am asked each time a client visits Michigan Bankruptcy Attorneys . Most of them have been told, incorrectly, that they will never get consumer credit again and they are concerned about that. In reality, it will be possible to obtain charge cards, car and truck loans, mortgages, etc, even though you filed for bankruptcy.
Bankruptcy usually stays on your credit report for 10 years, however the older your personal bankruptcy case is, the better your chances for credit tend to be. If you successfully finish your Chapter 7 or Chapter thirteen, those debts will be eradicated out of your credit report ( although it will state that they were discharged during individual bankruptcy), which means that your credit score grows slightly within just months after your discharge. Also, within about six months from your discharge, you will get charge card applications in the mail, although you will be paying a higher rate of interest than normal. But if you have a low balance credit card, something you can pay off each month, you can use this card to improve your credit score. Simply pay the balance off monthly and on time; this positive payment history will be documented on your credit report.
There are several ways to use your credit cards sensibly to help you improve your credit score. For those who have a cellular that you pay by check each month, make use of your charge card to pay your mobile phone monthly bill, and then utilize (blank) money to repay the charge card. The same thing goes for gas for your car or truck; put a tank of gas on the credit card, then pay the card off.
If you are searching for a auto loan, you will also pay a larger interest rate than normal, but you can still obtain a car loan. It depends on your job status as well as your credit score. the longer you wait to purchase a vehicle after personal bankruptcy, the smaller the interest rate you will be charged. If you are searching for a mortgage, you might want to hold off until 24 months from the discharge date so that you can qualify for a FHA loan.
Michigan Bankruptcy Attorneys suggests when you have a home loan, car loan, as well as utility bills, continue to keep those payments up-to-date and pay them by the due date. Usually, these payments are reported against your credit history and when you keep them current and on time they’ll be submitted to your credit rating bureaus and definately will help rebuild your credit rating.
