Getting to Your Feet after Bankruptcy

By Leni Parrish on October 23, 2010

When people have too much debt to handle, they end up losing most of their assets. Their home mortgage gets foreclosed, the car already claimed as payment and settlement for pledge, and often times, they lose their jobs. It may look like a typical television drama, but these things do happen. Fortunately, most of these people don’t give up and would rise to their feet to start over again.

With the red marks of bankruptcy on their credit reports, it would take a long time for them to get a new credit. Credit bureaus report that it will take seven years for the bankruptcy record to disappear from the report. And if these bankrupt people need money very much, especially if they have kids to take care of, they usually have to turn to credit. Luckily, credit card companies also understand bad credit history situations. That is why they provide Secured Credit Card Offers.

One of the problems faced by bad credit history consumers is coming up with security deposit. Yes, the deposits are not cheap, but the amounts are reasonable. Also, this amount is not an advance payment or upfront fee. It is just a deposit which will be later on returned after the credit amounts are paid. So if customers place this deposit in account, which by the way will grow interest as long as customers don’t cause it to disappear.

The interest rates are high, that is true, but customers must find this as an advantage. Paying high rates show that the customer is willing to build a better credit history. And upon successful no-default or no-late payments were consistently made, customers will find their credit history improving and their credit scores rising bit by bit. This is enough proof for them to show their sincerity in improving their credit report.

Though they have proven to themselves that they have reestablished a credit history through secured credit card, it should also be reflected in their credit report. Credit bureaus will file the credit data submitted to them by credit card companies and record them in the credit reports. If the payments made with the credit cards haven’t been recorded in the report, efforts may be useless and future loans and credit applications are still unreachable.

But thanks to the new federal laws, customers are permitted to view their credit report once in every twelve months to allow them to check for any errors they can dispute with the credit card companies and the credit bureaus.

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