Bankruptcy Myth #1: You won’t receive credit offers after your bankruptcy.
Don’t be surprised to receive many credit offers following your bankruptcy. Car lenders, mortgage financiers, credit card companies and more, often line up for the chance to provide post-bankruptcy debtors with all types of consumer spending opportunities.
Bankruptcy Myth #2: Taking creditors up on all of their offers is a good thing.
These same lenders and card companies are also coming forward to capitalize on the clean financial slate your bankruptcy provided. Unfortunately, many of these so-called “helpful” creditors are actually subprime lenders targeting average Americans just like you who are attempting to improve their credit and get back on their financial feet.
As a result, post-bankruptcy beware quick credit offers and avoid subprime lenders by following a few easy tips to stop the cycle of debt and get back on a better budgetary track:
Remain Vigilant About Your Credit Report
It may sound obvious, but in the months following your bankruptcy, your credit report should accurately show that the debts you discharged in bankruptcy are fully discharged. If discrepancies appear in your report, rectify them by contacting your credit bureau and calling attention to the errors. The power of an accurate credit report post-bankruptcy cannot be understated: fewer debts; higher credit scores; attracting higher quality lenders for better credit offers.
Pay Your Bills
Improving your credit post bankruptcy is as easy as paying all of your bills, all of the time, on time. From house notes to car loans to utility bills and more; anything that you kept and continue paying for, on time, post bankruptcy reflects a positive payment history and a better credit report. These small fiscal steps can improve your credit rating and provide more wiggle room to work with better lenders in the long-run.
Be Choosy With Your Credit Cards
In many cases, credit cards are the culprit in necessitating a bankruptcy filing in the first place. Don’t make the same mistakes twice. Seek out a secured credit card that can reflect positively on your payment history and show early signs of responsible credit use. In addition, keep up your credit card payments and keep in mind that credit does not equal cash, but merely a way to keep up appearances that you are an accountable consumer and worth lending to. As such, use credit cards infrequently.
Even infrequent use of credit cards can cause serious financial woes if you don’t read the fine print. To avoid unwieldy interest rates and fees, carefully read all terms and conditions when applying for credit. While new credit card legislation was enacted to minimize the amount of surprises and confusion when dealing with creditors, it’s important to be your own best watchdog when warding off predatory lenders.
Even if you haven’t been through a bankruptcy yet, , understanding the tips listed above can help you avoid bad lenders and bad debt. If you’ve already succumbed to subprime loans, there’s never been a better time to contact a qualified bankruptcy attorney that can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure fiscal future. The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.