After Bankruptcy…Is There Hope? admin Tuesday, September 17, 2013 The Receipt, Your Money and You After filing bankruptcy, is it difficult to qualify for credit and loans? While much will depend on your specific situation (credit score, income, age of bankruptcy, etc.), it doesn’t have to be as difficult as some people make it. Through research and experience I have identified a three step process readers can use after filing bankruptcy to increase their chances of credit approval. 1) Identify Ways to Increase Your Credit Score It is essential that you take steps to increase your credit score if you have plans of applying for credit after filing bankruptcy because it can mean the difference between being approved or declined for a credit and being given that all important second chance. If you can increase your credit score enough after filing bankruptcy, you may also be able to secure a lower interest rate on any loans that you qualify for and this could save you hundred and even thousands of dollars in interest payments. There are several steps that can be taken to increase your credit score after filing bankruptcy. You can begin by having any inaccurate negative information on your credit reports corrected or deleted. You will also need to take all necessary steps to assure also that any obsolete negative information is removed from your credit report immediately. 2) Understand How the Credit Approval Process Works By knowing how the credit approval process works when applying for loan after filing bankruptcy it will give you an edge over a lot of consumers that do not understand the credit approval process. For example, what criteria does a specific lender use when reviewing applications? Do they have a minimum credit score criteria? What are the income requirements? How much of an impact does your bankruptcy have on a particular underwriter’s decision? After filing bankruptcy, it is extremely important that you know the answer to these questions before you begin applying for credit. By knowing the answers to these questions in advance it will help you identify the lenders that will consider your application and raise the odds in your favor for approval. While there are several other questions you can ask, these are the most important questions and will give you a good starting point. 3) Applying For Credit Again Following Bankruptcy There are specific strategies that you should use when applying for credit and loans after filing bankruptcy especially if you are planning to obtain an auto loan to purchase a vehicle or planning to buy a home. While there are several strategies you can use to increase your chances of being approved for a particular loan that is guaranteed to help you not only save money on interest charges, but also help you save money on the purchase itself I will focus on one of the most effective strategies which is a method called piggybacking. Piggybacking is where one person “lends” their good credit to another by making them an authorized user on one or more of their credit accounts. The good credit of the first person is then reported as an authorized user trade line on credit reports which in turn helps build or rebuild a credit score. This can be done by a friend, relative or even a stranger in order to give you the credit boost that you need. In summary, while credit is not as easy to obtain after bankruptcy as some consumers would like it is definitely not impossible in fact it can easily be accomplished when following the three step process I have just outlined. KEVYN JEROME NELSON is the President/ CEO of WORLDWIDE CREDIT AND FINANCIAL SOLUTIONS INC www.worldwidecrediandfinancialsolutionsinc.com and MIDAS TOUCH ENTERPRISES WORLDWIDE LTD Published works include “Corporate Credit Unleashed” and “When All Else Fails….Legally Create A New Credit File” Available On Amazon.com http://www.amazon.com/Kevyn-Jerome-Nelson/e/B00AQLQS22/ref=ntt_athr_dp_pel_1 For More information on the concepts discussed contact 323-769-6356 or email admin@wwcfsinc.com.
