| Most credit experts agree that the worst possible | | | | represent. Interest rates can go as high as 28%, |
| credit entry on your Credit Report is a Bankruptcy. | | | | that’s almost a third of the amount you |
| Whether you have filed a Chapter 13 (13 is a pay | | | | borrow. But you can still find a relatively good rate, |
| back plan with just some debts eliminated) or | | | | maybe not the lowest (prime rate +1) but within a |
| Chapter 7 (everything is eliminated except for a few | | | | few points. |
| essentials), it demonstrates a complete failure in | | | | The tough part is finding some creditor to give you a |
| managing your credit. | | | | second chance. And you also have to be very |
| Regardless of why you filed, this entry stays on your | | | | careful, as there are many companies that will take |
| credit report for 7-10 years. Everyone has their | | | | advantage of your situation. The credit industry is a |
| story, and sometimes circumstances go beyond | | | | business just like any other. There are lenders out |
| anyone’s ability to recover from | | | | there that will give you credit, but the catch is finding |
| insurmountable debts. A good example is when a | | | | credit at a reasonable cost. |
| family member suffers a catastrophic illness and the | | | | Start out slow, and make some small purchases at |
| medical bills are way beyond any health insurance | | | | stores who will grant you a small amount of credit at |
| benefits. | | | | a reasonable rate. Electronic, appliance, and furniture |
| But there are ways to recover fairly quickly from this | | | | stores are usually willing to give you a chance to |
| type of situation. It takes a little dedication and | | | | start building good credit. A good example in Texas is |
| effort but in as little as 18 months you can have your | | | | Conns ( Appliance Stores. They have a good |
| credit score back in the high 600 range. Your credit | | | | program and charge very reasonable rates. |
| score can range from 300-800+, and if your score is | | | | Stay within your budget and make a down payment |
| below 600 for any reason it’s time to make | | | | of half. Then try and pay off the note within 6 |
| some changes. | | | | months or as early as you can. Do the same thing at |
| The reality is that no one is better at improving your | | | | a furniture or appliance store. You can have 3-4 good |
| credit score than you. It doesn’t take any | | | | entries in your credit file within 9 months. |
| special talent or skills. You do need to face the reality | | | | Get a small limit (or even a deposit based credit card |
| that you are at a disadvantage and it’s time | | | | – most will convert in 6 months or less if you |
| to start taking corrective action. Put the bad | | | | abide by all the requirements) credit card and only |
| experience behind you and move forward. Easy to | | | | charge very small amounts. Pay off your balance in |
| say, sometimes hard to do. So if you need some | | | | full each month, and pay it off early if possible. |
| counseling help, a good place to look is your local | | | | Make sure that you pay on time or early on any |
| community organizations or perhaps even your | | | | credit account that you retained after your |
| church. There are people that are willing to help you | | | | Bankruptcy filing, such as a house or car. This will |
| get over this problem, and don’t have to pay | | | | show creditors that you are now managing your |
| for it. | | | | credit and will improve your credit score. |
| A low credit score can cost you money, job | | | | In fact if you do all of these things above and follow |
| opportunities, and credit denial. Bad things happen to | | | | the basic instructions you will get back up to the 680 |
| good people and so many creditors may consider | | | | score and above. I have seen it happen time and |
| more than just your credit score. But your credit | | | | time again. This is not brain surgery and anyone can |
| score still plays a big part in most decisions made on | | | | recovery from a bankruptcy filing in a comparatively |
| whether to grant you credit and at what interest | | | | short time. |
| rate. | | | | It’s also a good idea to monitor your credit |
| Many high paying jobs ($100,000+) or jobs that you | | | | reports during your recovery period. Everyone should |
| have a key role in handling money will run a credit | | | | check his or her credit report each year. It’s |
| check on any applicant. You can understand why, | | | | now Free and won’t take much time as long |
| sometimes the temptation is to great and people | | | | as you stay on top of it. You can request one credit |
| have misused their positions for financial gain. | | | | bureau at a time every 4 months and have a good |
| Employers have to protect themselves so this policy | | | | idea of what’s been entered in the past 12 |
| is very understandable. | | | | months. |
| The lower your credit score, the higher interest rate | | | | Don’t pay for something that you can get for |
| you will be offered due to the higher risk you | | | | FREE. |