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After filing for bankruptcy, when do banks consider lending to you again?

Written by paul on September 20th, 2006 with no comments.
Read more articles on Credit Help.

If you have declared bankruptcy , there are a few things you need to do after your bankruptcy is discharged.

  1. One or two months after discharge you need to pull your credit reports and verify that all accounts are “included in bankruptcy”. Lenders will look at “included in Bankruptcy” as a positive because they know you cannot file for another 7 years.However, not all accounts will report bankruptcy information accurately and, even after you update incorrect information, there is a possibility that the accounts will revert back to “charge off” or “unpaid” status.

  2. You need to reestablish credit and the best credit card for that is Orchard Bank Orchard bank offers credit cards that allow you to rebuild your credit. Use this card as a credit building tool by paying the balance off each month (interest becomes a non-issue).
  3. Keep your debt ratio as low as possible and you should be able to get a mortgage loan within one or two years at your local credit union. It is possible to achieve mid 600 credit scores and receive 100% mortgage financing

You should be able to get an auto loan almost immediately after discharge but you need to be careful on a few key issues. Be sure you can afford the payments as the interest will be higher. Be sure you know what you need in a vehicle as you will not have equity unless you can manage a large down payment. Auto loans are a “fast track” score builder if handled properly.

Topics: Credit Help |

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