Two Year After Bankruptcy Plan

Under Credit After Bankruptcy+ Life After Bankruptcy+ Mortgage After Bankruptcy

In order to get your credit problems behind you quickly and move forward with your life build a thorough two year after bankruptcy plan. With a thorough plan you can move forward much sooner than before it actually falls off your credit report. Rebuilding your credit is going to take a lot of persistence, but as long as you stay on top of it, you can make some big improvements with some simple credit building tips.

The first thing you need to do, about a month after you’ve finally discharged your debts, is get a copy of your credit report. You need to make sure that all of your past debts have been marked as “included in bankruptcy” and not open, late, etc. This is very important. Many companies will fail to fix this because they have no real motivation to take care of it, but with it still on there it looks as though you had a bankruptcy AND still more debt. You need to call the companies and if they are not on top of things you need to ask to speak to managers, send a written request, and possibly just keep calling until it’s done. This is unpleasant, but very important.

Put together an emergency savings account with at least $1,500, and keep it replenished over time. This will keep you out of trouble when life’s unexpected problems come up, especially because of how hard it will be for you to get any kind of outside financing now.

Once you have the funds to do so, get a secured credit card. You can get these at most financial institutions. This will take some money, as you have to put some funds into a savings account that you can’t touch for between 12 to 18 months, but is a wise financial move that will really get the ball rolling for your two year after bankruptcy plan. This is one of the fastest, easiest, best things you’ll do to improve your credit.

Eventually, possibly a year later, get a small loan. It will be easiest to get a secured one, but you’ll have to go with what you’re able to do. It doesn’t really matter what it’s for (school, a car, etc) just that you’ve gotten a small amount of financing and pay it back with all of your payments on time. If you have a difficult time doing this, look into CD secured loans–this will require you to have some money available to buy a CD (certificate of deposit) but when all else fails, this is an easy option for getting loan approval.

During all of this keep an eye on your credit report and always keep working on building up a history of healthy financial accounts. The more on time payments, the more healthy activity over time, the higher your score will be and more willing people will be to work with you. In as little as two years after bankruptcy, with a good plan, you can have a good score and have an easier time financially.

By Jennifer

Buying a Home After Bankruptcy

Under Life After Bankruptcy+ Loans After Bankruptcy+ Mortgage After Bankruptcy

Buying a home after bankruptcy doesn’t have to be all that different from doing it without that on your record. If you really want a home, don’t let your past stop you, but do be aware that you’ll need to be more persistent and patient.

Almost every lender will want you to wait two years after you’ve completed bankruptcy to apply for a mortgage, but it will probably take at least that long to get your other things in order anyhow. There are four things you need to do to prepare yourself- take care of your past problems, save a down payment, build new credit, and secure steady, well paying employment. Taking care of your past problems should be something you do whatever your financial goals. You should obtain a credit report and make sure that all appropriate accounts are marked “included in bankruptcy” and not open or overdue. This is a common problem and a very important one to take care of as soon as you can. To show that you are serious about buying a home after bankruptcy you should have a large down payment, which you should have anyway. To avoid private mortgage insurance you need to have a twenty percent down payment. I know this is a lot of money, but so is a house.

The most important thing to do to build new credit is to make timely payments. Build a budget, stick to it, and stay on time. On that note, getting a credit card and using it lightly is a great way to build credit. Right after bankruptcy I would suggest looking at secured credit cards. As with anything, look at several deals to find the best rate. It’s also a good idea to secure a small loan to show you can be responsible with one, but be aware that your interest rates will be very high. The other thing that you need to do, which will be really needed for all other things is a well paying, steady job. The longer you’ve been with your job, the better for your application.

It may seem frightening and impossible after your past problems, but buying a home after bankruptcy is possible.

By Jennifer