Filing bankruptcy may help clear up debt.
It also wipes out credit.
Consumers do have ways to rebuild their credit with secure credit after bankruptcy.
It takes some time and tenacity, but this is not an impossible task.
Read on to learn how you can get a fresh start in obtaining the trust of a financial institution.
The simple truth is that in the world of commerce, individuals that have gone through bankruptcy are considered a greater risk, so higher interest rates will be applied to those with low credit ratings.
Once trust is established once again and payments are made on time, the interest rates will be lowered for the consumer.
The period of time you are unable to borrow would be a great time to catch up on the bills that the bankruptcy was not able to clear.
This step in the repairing process often takes up to eighteen months.
New credit after the bills are paid will be available at a higher interest rate, but it will help establish credibility with creditors once again.
Trust after bankruptcy is available through secured credit cards.
A deposit is made to an account and held as security for the credit card.
Credit limits range from fifty to one hundred percent of the deposit that is securing the credit card.
Some banks will even pay a small amount of interest on the deposit.
Applicantswill be charged fees for the credit card and sometimes a money transfer fee as well.
Most credit after bankruptcy will require an annual fee be paid for the secure credit card.
Rebuilding a positive credit record often will take about two years.
At this time many consumers that have maintained a good credit record with the secured credit will be offered unsecured credit.
The credit limits increase as long as the consumer makes the payments in full and on time.
There are even lenders that will extend credit after a bankruptcy when the consumer is trying to purchase an auto, though interest rates, once again, will be higher than for individuals who have never filed bankruptcy.
The continued good credit depends on reliable payments being made on time.
Rebuilding credit after bankruptcy is not impossible, but it will take some time.
Responsible spending and savings along with patience are the keys to rebuilding your credit.
There are many agencies that can help you to rebuild your credit.
Check them out and compare the different methods of getting your credit rating back up to par.
Your future purchases and credit availability depends on you making payments in correct amounts and on time.
The road back to stability may seem long, but it is sure when you slowly take on only the credit you need and save for everything else.
This method of rebuildingcreditis the safest path to your economic stability.
Step by step it is possible to become financially stable once again and to get life back on track.