You’re bankrupt. You’re doing all the right things to improve your credit and get over your bankruptcy (i.e., controlling your money and credit well, increasing your fico scores, paying your bills early or on time, and re-establishing credit). So, when will the dark cloud that has been over you because you filed bankruptcy leave? With some lenders, so long as your personal bankruptcy remains on your credit file you’ll be refused credit.
The good news is, there are many “normal” lenders who are prepared to work with you after bankruptcy. You need to know where to find them just. IT ISN’T about dealing with lenders that are convenient for you. It’s about finding lenders that will continue to work with you without taking benefit of your situation. Each lender pieces their own “credit suggestions.” What are credit guidelines?
They are simply just the minimum requirements you must have to be able to qualify for credit with this lender. The three common credit guidelines for most lenders who work with people after personal bankruptcy are: (1) the amount of time you have since your discharge; (2) how you pay your expenses after release;, and (3) your FICO scores. The maximum timeframe the dark cloud of personal bankruptcy comes after you are up to 10 years.
Remember, this dark cloud is for a season in your daily life, not forever. Bottom line: the more time you have after your bankruptcy is discharged the greater opportunities you need to get credit. But lenders should also know you’ve retrieved. Late obligations after a discharged bankruptcy are bad news.
Lenders need to see an early on or on-time payment background to feel comfortable with you after personal bankruptcy. There is no escaping a lender who’ll judge us on our film scores. That is why it is so important to increase your scores by deleting inaccurate, obsolete, and unverifiable information from your credit reports.
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Your FICO ratings are just too important to ignore. You need to make it important to maintain your FICO credit scores as high as they can be. High fico scores are the key to unlocking opportunities that have been concealed from you. Let’s take a look at how lenders use credit scores so you can know very well what I mean. Mortgage companies are pretty forgiving as it pertains to lending money to someone who’s filed bankruptcy.
In reality, after bankruptcy, that it is easier to get a home loan on a fresh home than get approved for a unsecured credit card. To get better terms and a lesser interest rate, you will need a higher middle credit history. A middle rating of 600 will provide you with a lower interest and better conditions.
A middle rating of 620 or above opens up better still options when you have two years after discharge. A FICO credit score over 700 on the credit-reporting agency, the maker uses will open up the floodgates for you. A rating between 600 and 620 seems to be the smallest amount you need to qualify with most lenders for a good interest rate.
Slimy lenders (the type that wears lots of yellow metal chains, polyester suits, and transmit a hairy chest to the world) can help you if you have a lower score. Remember, many car dealers use only one FICO rating to make their financing decisions. So, you’re always better off going to a dealer who uses the credit scoring agency where you have your highest FICO rating.