Bankruptcy always proves to be a huge blow to your credit ratings. However, this does not mean that you are doomed forever. People over the years have linked eternal failure with the people who have filed for bankruptcy, which by all means is not the right thing to do. The first and the most important thing to do after you have filed for bankruptcy is to quickly build back your credit and credit ratings. I will guide you through all the required steps and attitude to build your credit ratings after bankruptcy.
The most important thing is to flush out the emotional factor linked with bankruptcy. Either you have filed for the chapter 13 or chapter 7; it does not mean that you have no right to build credit. The number of people that have filed for bankruptcy in the last four years is more than 6 million. So, you are not alone by any stretch of the imagination. Stand up to the occasion and have the belief that you can get back the credit ratings you need to have.
There are a number of credit loans scams trapping the recession-hit people. Try to avoid these scams and focus on core things to build your credit ratings. The bills you pay monthly can be of great help in this regard. Try to increase on the number of monthly payments you make. This can include any thing from you phone bill to your monthly cable connection dues. This will help you a great deal in adding points to your credit ratings.
Save some of your money and open a secured credit card. Watch out for any hidden fee’s they may try to tell you about and that you have to pay them. There are companies out there that want to help you rebuild and when it’s a secured credit card it’s your money not theirs. You place the 250$ in their bank and they report it as a credit card. Make sure they report as a credit card and not a pre-paid card. Just ask them when signing up.
You will also require making certain checks before you start building your credit ratings. Always check your credit ratings for any past after your bankruptcy application has been accepted. Moreover, try to get yourself a savings account in a larger Banking firm. However opening an account might not be enough. Try to save some money each month and deposit paychecks in your account. This will boost your credit ratings at a very healthy speed.
You can also start makings mall purchases using your secured credit card. However, you need to check out the interest rates and hidden costs. You can also get an old car for a down payment of sizable amount. However, follow the line of buying an old car only if you can make the monthly payments. Other wise, it can back track your other efforts to build credit ratings. All along these efforts, try to pay your bills on time.
If you do these steps and watch your payments and do not go overboard like before. You will build back your credit ratings in no time. It could take a couple years but you will get there and it’s not as hard you think it is.
