Is Bankruptcy Credit Available?
Getting credit after bankrutpcy is not impossible. What's not obvious is how to obtain it. Many people assume time itself is the healer, and although it helps it is not the most significant factor.
If you are seeking credit after bankruptcy or are researching its effects, this site will explain how you can obtain bankruptcy credit.
Why would I want Bankruptcy credit?
Many people experience bankruptcy and, for a short while, swear they will never obtain credit. The fact is, as a discharged bankrupt you will probably need credit at some point in the future. For example, you may want to buy a house or a car.
Even if you don't, without repairing your credit, you may be limited to a bankruptcy bank account where the banking facilities are limited. You may also face restrictions with mobile phone contracts, insurance and other consumables where finance agreements are necessary.
How easy is it to obtain credit following bankruptcy?
In short, getting credit after bankruptcy is possible and your success depends on your personal circumstances. Knowledge is the key and you will need a credit repair plan. For this it helps to know about:
- Credit Scoring
- Credit Reports
- Bad Credit products and providers
Importance of a good Credit Worthiness
Even if you are not seeking credit immediately after bankruptcy, it makes financial sense to repair your credit.
Reasons that you may want to repair your credit include:
- Getting a current bank account with normal facilities
- Applying for a business bank account
- Getting a mortgage or car in the future (it takes time to repair credit!)
- Insurance given on credit card purchases
- Using cards abroad
- Getting a mobile phone contract
- Obtaining insurance
- Emergencies (Eg. medical)
What Bankruptcy Credit is Available?
The following mainstream products may be available to you either now or in the future after you have repaired your credit:
- Credit Cards, Car loans, Mortgages, Secured Loans, Unsecured Loans
As a discharged bankrupt, you will be considered higher risk by the lenders. As such:
- Less products are available
- Less providers will help
- Fees may be higher
- Interest rates may be higher
