Today we have grown to a nation in search of instant gratification, buy now pay later syndrome. So, without a good credit rating it will be very difficult to get the things you want at the time you want them. Consumer credit has been accepted as a substitute for cash, so that good credit is the key to the future.
As a consumer it is to your benefit to fully understand how credit works and every aspect of what is involved when you apply for any type of credit, including the major credit reporting agencies that hold your credit report file. If you understand what banks and other creditors are looking for to extend credit to you then you can monitor your financial future and accept only the best choice.
When you apply for credit, lenders want to know about you, your employment history, your income, your assets, and most importantly they want to know about your credit history. A creditor will get a lot of information directly from you by a credit application, then your credit bureau report to verify this information and confirm references and credit scores.
Then upon evaluation of your credit application combined with your credit report, the lender will determine your credit risk and make a final decision on whether or not to grant you credit and at what rate of interest they will charge you. Let's take a deeper insight into the factors that can either be an asset or liability at the time of the application for credit - your credit report.
What is a credit report? Your credit report is your financial resume, a summary of your financial reliability, containing both personal and credit information. Your credit report is obtained from credit bureaus, also credit providers, employers, insurers, landlords and other enterprises that have a legitimate need for such information. The Federal Fair Credit Reporting Act (FCRA) is recommended read.
Rick Sax, Inc.
The Credit Repair Law Firm, Chartered
Apart from the entire financial crisis it brings, the individual have to go through a lot of emotional distress as well. But it is in the best interest of the person filing to be able to regroup and start fresh. Many see this as a really bad phase in their life. They should try to forget about this as early as possible and get back to life. The road to recovery from bankruptcy is quite long and very difficult. The Credit Repair Law Firm Chartered can help.
After bankruptcy, you should meet with your creditors and make them aware of your situation. Depending on the type of bankruptcy filing, most of your assets can be liquidated, but you can take your car, furniture and some personal items at a specific value. But all non-exempt liquid assets like cash or Certificate of Deposit must be handed over to court appointed trustee.
One of the first questions after the bankruptcy is how to regain credit. First task to accomplish is to obtain secured credit cards. This is a credit card secured by a deposit and will be eventually released, look at this as a long term savings account. After that come the loans you should be aware that it is virtually impossible to obtain any type of loan for 18 to 24 months of bankruptcy discharge. It is not even worth trying to apply for one unless there has been enough time to evaluate the payment history of the secured credit cards. Instead, you should work on improving your credit rating at this time. This is why it is very important to establish the secured credit cards so there will be history of the new accounts to determine your creditworthiness.
A few things which you can do to improve your credit score are given below:
Reorganize your financial life after bankruptcy is difficult and requires determination and grit. Since the bankruptcy shows up in your credit history for next 10 years or so, it is very important that your recent credit history is clean. The information on your credit file needs to be accurate. The Credit Repair Law Firm Chartered can help restore your personal creditworthiness after bankruptcy.
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