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.
There are plenty of people who use credit every day. There are some that only use it for cars and houses; others use credit for furniture and clothes and some use credit for their day-to-day purchases.
If you are someone that uses credit then you will be familiar with the term blacklisting. So what does it mean to be blacklisted?
There is not some sort of list that has everyone’s name on who has been blacklisted, but it is a term that isn’t officially used by credit providers.
The term blacklisted means that your credit provider has negative information about you, which may stop you from getting credit in the future.
The negative information that they have may indicate that you have missed a payment or that you are late with paying for something. This though can grow and it could mean that you end up in court, being prosecuted for not paying your debts.
If you have been blacklisted then you are most likely not able to get credit from a traditional financial institution like a bank. You may also find that you are denied access to business financing and any other credit from a credit card provider. The worst part though of being blacklisted is that you may find it hard to get a job. There are many employees that will not hire anyone that has been blacklisted or has filed for insolvency.
As there are severe consequences of being blacklisted, it is important that you do not get reported to the credit bureaus for being a bad payer. There are ways that you can avoid being blacklisted. Here is how you can stay on the good side of your creditors.
All your installments that you have agreed on should be paid and on time. If you are unable to pay on time then you should inform your creditors.
You need to speak to your creditors openly and honestly. If you are not able to make your payment on time, then call your creditors and tell them about it. Creditors are sometimes willing to give an extension or allow a late payment on occasion if you usually pay all your payments on time.
If you find that you are struggling to pay your current debt, then do not take on any more debt.
It is also a good idea to limit your lifestyle and try and spend less.