How To Rebuild Your Credit After Bankruptcy?

How To Rebuild Your Credit After Bankruptcy?
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How To Rebuild Your Credit After Bankruptcy?

Bankruptcy discourages many creditors and lenders to do business with you. However, if you have a strategy in place after bankruptcy then you might just be able to get back on your feet financially.credit

When you file for bankruptcy, your credit score takes a hit and will end up in the lowest rankings depending on the severity of your bankruptcy and your past credit history.

However, there are ways that you can rebuild your credit after bankruptcy.

Before you file for bankruptcy, you should at least zero out one credit card that has a low interest. Your issuer might not allow you to keep this card, but if you are able to keep it then you are able to use it as source of potential good credit, which can help to rebuild your credit.

Any marks that appear on your credit history that bring up your bankruptcy are not good. You should get in touch with your creditors to see if they are willing to remove their zeroed balances from your credit report. Getting rid of these blemishes can automatically improve your credit.

It might be an idea to take a credit card, but the credit cards that you are able to get will have high interest rates and high annual fees. However, taking one of these cards can help to show that you are able to make timely repayments. You will need to make sure that you have allocated cash in your budget so that you are able to pay off these new cards, otherwise you will just run into the same problems. You may find that some issuers will need you to put up some collateral in order to qualify.

You can also sign up to be an authorized user of a third party’s credit card so that you are able to benefit from their credit. You don’t even have to make any purchases on this credit card, because the bureaus will see that you are able to maintain a line of credit that is in good standing and will reward you.

You should never assume that your credit score will be automatically boosted by the bureaus after you have better borrowing habits. Check your reports regularly to ensure that your borrowing behavior is being noticed after bankruptcy.

 

Save Money without Dramatically Changing your Lifestyle

Save Money without Dramatically Changing your Lifestyle
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We know that we are able to spend less by making sacrifices, whether it’s eating out less to buying less and cutting back on items. It can be an effective way to save, but it is also painful.

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Here is how you are able to save money, without changing yourself too much.

Get Healthy

Staying fit and being healthy is hard work, but if you are in good shape then you are able to save a lot of money on your life insurance and health insurance.

Consider Car Insurance

You should reexamine your car insurance every year to see if you are able to make any savings. You could for instance raise your deductible, which will then lower your premiums. If you have an older car then determine if you really need collision coverage. Also every year compare medical insurance quotes, which is easy to do online.

Improve your Credit Score

Of all the ways that you can save money painlessly, improving your credit score is the most important. Having a good credit score can save you a small fortune.

Invest on the Cheap

If you are a mutual fund investor then stay with funds that have a lower expense ratio. Keep the weighted average expense ratio under 50 basis points.

The Triple Threat

A large monthly expense is cable, Internet and phone. The major providers will usually offer discounts when all three of these are bundled together. You can then save money and get just one monthly bill each month.

Go Prepaid

The option of going prepaid on a cell phone will not suit everyone, but there are some that will be able to save a small fortune by going prepaid.

Shop Online

Online shoppers can take advantage of special discounts. There are also discounts, promo codes and coupons.

Cash Back

If you have good credit then there are cash back credit cards that gives you a certain amount back on purchases.