It is the number 1 question I get asked whenever a client comes to visit
Michigan Bankruptcy Attorneys . Most of them have been told, incorrectly, that they will never get credit again and they're worried about that. The simple truth is, it is possible to obtain charge cards, auto loans, home loans, etc, even if you filed for bankruptcy.
Bankruptcy can remain on your credit report for ten years, however the older your individual bankruptcy case is, the greater your chances for consumer credit tend to be. When you successfully complete your Chapter 7 or Chapter thirteen, all those bad debts are eliminated from the credit reports ( though it will state that they were discharged during individual bankruptcy), so your credit score will increase slightly within just months after your discharge. Also, inside about half a year from your discharge, you will definately get charge card applications in the mail, though you will probably be paying a larger rate of interest than normal. However, if you have a low balance charge card, something you can repay each month, you can use this card to improve your credit score. Just pay the balance off every month as well as on time; this good payment record will be documented on your credit score.
There are several ways to use your credit cards wisely to help you fix your credit score. For those who have a cell phone that you just pay by check each month, make use of your charge card to pay off your cell phone bill, then utilize (blank) money to pay the charge card. The same goes for gas for the car; put a tank of fuel on the credit card, then pay the credit card off.
Should you be looking to get a auto loan, you'll also pay a greater rate of interest than normal, but you can still get a auto loan. It will depend on your job status and your credit rating. the more time you wait to purchase a car after individual bankruptcy, the smaller the interest rate you will be charged. If you are searching to obtain a mortgage, you may have to wait until two years from the release date so that you can qualify for a FHA loan.
Michigan Bankruptcy Attorneys recommends when you have a mortgage, car loan, or even utility bills, continue to keep those bills up-to-date and pay them by the due date. Most of the time, these bills are reported on your credit report and when you keep them current and on time they will be reported to your credit rating bureaus and definately will help rebuild your credit rating.
