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The best way to
re-establish credit is to get more credit.
Many banks will offer credit cards -- even with no security
-- to recent bankrupts. Every current payment
helps build your credit. Moreover, your credit
score improves even more if you charge no more than 30%
of your available balance and pay it off every month
There are many online
sites that provide listings of creditors willing to provide new
credit to people with poor credit scores. There are even many
banks that will provide you with unsecured credit lines.
Many people are surprised to learn that in many cases
they may be better risks after bankruptcy.
After all, you are largely debt free and a better risk
so long as you have enough income to cover future
obligations. For instance, most bankrupts can
obtain a mortgage at or near market-rate interest after
as little as two years.
There are a lot of
banks that will offer credit cards -- even unsecured
credit lines -- even before your bankruptcy is
discharged. These cards usually carry low credit
limits at first but the limit usually increases steadily
as you make monthly payments on time. Again, the
key is to never charge more than 30% of your credit
limit and pay the card off every month.
Plenty of car
dealerships also offer financing through local banks for
people who have filed bankruptcy. Your payment
history on a car loan helps you re-establish your
credit. Often, in as little as six months after a
bankruptcy filing, your credit score can be higher than
it was before you filed bankruptcy.
For an
excellent article on how to re-establish your credit
after bankruptcy, read this piece on from MSN Money.
MSN Money by Liz Pullian Westin.
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