| So you have filed all of your papers with a bankruptcy | | | | credit line, just like some credit cards you have used in |
| lawyer and learned that the bankruptcy will stay on | | | | the past. If you make your payments on time and |
| your credit record for at least the next ten years and | | | | spend responsibly eventually the end result will be a |
| you are feeling a little depressed. Everything in your | | | | positive impact on your credit score. My friend looked |
| financial life has been affected including your chances | | | | at her credit report six months after getting one of |
| in the near future of getting a mortgage or car with a | | | | these cards and her score had actually increased by |
| low interest rate. What do you do now? As odd as it | | | | 20 points. What is also nice about the secured credit |
| sounds to some people many banks and companies | | | | card is that if you make your payments on time they |
| out there want to do business with you, which in turn | | | | might eventually switch you over to an unsecured |
| can help you start your financial life over. Increasing | | | | credit card and increase your credit line. |
| your credit score is not always easy, it is going to take | | | | 2) Big Box Store Cards: From researching these I |
| some planning, will power, and even a little hard work. | | | | have discovered that Harlem Furniture, Lowe's, |
| The good news is that it can be done. | | | | Menards, etc. might be willing to give you one of their |
| Credit cards may be what put you into bankruptcy in | | | | cards even after you have declared bankruptcy, but |
| the first place, but now it is your chance to use them | | | | their cards will definitely have a high interest rate for |
| to help you rebuild your credit history. I have a close | | | | you. If you buy an item from one of these big box |
| friend who in 2006 declared bankruptcy, but she has | | | | stores you have chosen for their credit card just make |
| worked hard to build up her credit and now has a very | | | | sure you pay responsibly and on time. Keep in mind |
| good standing with all three of the credit bureaus. | | | | that the final goal here is to show to the credit bureaus |
| Amazingly enough her credit score last time I talked to | | | | and future companies that you can make payments |
| her is averaging around 730 for Transunion, Equifax, | | | | on time and can be trusted with more and better |
| and Experian, which she thought would never be | | | | cards. |
| possible this soon after filing. It is true that she will have | | | | 3) Piggy Back on Someone's Good Credit: What on |
| the bankruptcy on her permanent record for many | | | | earth do I mean by that? I will go back to my friend |
| more years, but at least she has a chance to get a | | | | who is married to someone with amazing credit. |
| home, car, or other asset at a decent price sometime | | | | Because her husband had a great credit score she |
| in the future. | | | | was able to "piggy back" on his good credit. Which |
| Throughout this rebuilding process you will want to | | | | means she was able to become an authorized user |
| closely monitor the changes in your credit reports. | | | | on a couple of his cards. She doesn't even need to |
| Many times mistakes are recorded in your credit | | | | make purchases using those cards, but the credit |
| report, some experts cite studies that say as much as | | | | bureaus will report that she is in good standing. You |
| 48% of all credit reports have errors in them that hurt | | | | don't even have to use your significant other's credit to |
| the credit worthiness of the borrower. One of the nice | | | | help yours, it could be a good friend that trusts you and |
| things about some of the laws that have been passed | | | | won't mind adding you as an authorized user. At the |
| recently is that a free report is available from each of | | | | end of the day there are many tools at your |
| the three credit bureaus on a yearly basis. So make | | | | disposable to help you with your newly cleaned credit |
| sure you use these free reports to monitor and keep | | | | slate. |
| tabs on how your rebuilding process is progressing. | | | | Make sure you check on your credit reports |
| Some Tools You Can Use to Boost Your Credit | | | | periodically and dispute any mistakes that are not |
| Score | | | | supposed to be on there. Establishing your new credit |
| 1) Secured Credit Cards: The amazing thing about | | | | score is in your hands and you are ultimately |
| these little plastic rectangular items is that they are one | | | | responsible for proving to the credit bureaus and any |
| of the easiest ways to obtain credit after a | | | | creditors that you have changed your ways. With |
| bankruptcy. With a secured credit card you basically | | | | some discipline and hard work you can come out on |
| put a certain amount of money you have towards the | | | | top again financially, many people have gone down this |
| card balance, and that is the credit line you will receive. | | | | path before you, and you will soon be ready to join the |
| So if you deposit $200 with the bank or financial | | | | ranks of credit worthy consumers where you belong. |
| company on that card then you will have a $200.00 | | | | |