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In today's society, credit is a vital tool needed to obtain goods and services. However, far to often, we look at credit as a right vs. a privilege. Now that you have been through the fire of bankruptcy, it's time to STOP and take inventory as to the reasons for filing bankruptcy. There are several compelling reasons for filing bankruptcy such as;
REASONS OF FILING BANKRUPTCY
* To eliminate all legal obligations towards debts.
* To stop foreclosure proceedings on their homes.
* Stop repossession of car or other property.
* Unable to pay high medical bills.
* Loss of work.
* Over spending (no budget in place).
In all likelihood, you have little or no credit card debt right now. So use this as an opportunity to stop using credit cards or at least start controlling the way you use them. If you can possibly avoid using credit cards, avoid them. Nevertheless, avoiding using credit cards is not a financial strategy that everyone can use. Therefore, I suggest the following actions to reestablish credit:
7 STEPS TO REBUILDING CREDIT
1. Take stock as to the reason for filing bankruptcy. It's time to ask those very hard questions. Was bankruptcy the only way out? Did I live beyond my means? How could I protect my income in the future? Did I have a budget? What was my financial strategy? Did I have a financial strategy? Sometimes, by looking back, you can avoid future mistakes and situation. Asking these and other questions and being 100% truthful with the answers can be the hardest part of rebuilding your credit.
2. Open a checking or savings account. This will show a lender that you can handle money.
3. Apply for a secured Visa or MasterCard. A secured credit is secured against a savings account. Usually, the credit limit is based on the amount of the deposit. Make certain that the credit card company reports to all three credit reporting agencies. Equifax, Experian and Transunion.
4. Write a letter to each credit reporting (Equifax, Experian and Transunion) explaining the reason for filing bankruptcy. This written statement will be added to your credit report for future creditors to review.
5. Make sure all three credit bureaus (Equifax, Experian and Transunion) show that your debts have been discharged in the bankruptcy. All to often the credit reporting agency does not update the credit file to indicate that a debt has been discharged in bankruptcy.
6. Pay all debts that were not discharged in the bankruptcy procedure on time.
7. What's my credit score? Since this number is reviewed by creditors, you should always know your credit score. Creditors use credit scores to check your financial responsibility before extending you credit. Checking your credit report is simple. You can get a copy of your FREE CREDIT REPORT
The above strategies are one of many. But, remember, it will take time, patience, and hard work on your part. However, life after bankruptcy can be enjoyable, if you control your future credit decisions and not let them control you.
Sound credit planning is essential to getting the most out of life. First Credit Associates has the knowledge and experience to guide you through your important credit decisions (before and after a bankruptcy).
How important is my credit score? What factors go into the credit-score formula? How do I teach my children about credit? How do I get the best credit card deal? Is there life after filing bankruptcy?
Visit [http://www.wisewithcredit.com] for more details.
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