Attempting to get a loan and rebuilding your credit after being discharged from bankruptcy may seem overwhelming at first. However, knowing what to expect and looking at it from the lending institutions perspective can make it less of a challenge.
One of the first things a financial institution will want to know from you is that your liabilities have been discharged. Believe it or not, there are lots of banks who are prepared to grant loans to people who have been in bankruptcy before. Usually, before a loan can be approved by the bank, they will require that a period of at least of 2 years has gone by since the bankruptcy has been discharged . Also in order for your loan to be authorized some banks or lending institutions may request a down payment from you.
The amount of down payment requested by the lending institution will depend not only on your previous credit but also the terms of the loan. This will include the amount of time and the amount of monies borrowed. Due to the current financial crisis that exists today, most lending companies will need between five percent up to twenty percent of the loan amount for you to put forward as your down payment.
However, if you're having problems in getting a down payment together then there are some programs which can help you. These programs assist you with getting your loan even if you don't essentially have enough money to place as a down payment yourself. One of the simplest methods in which this will be done is by getting a Visa or Master Card, though you can find that in the beginning you must make an application for a secured credit card.
Once you get your credit re-established make it a priority to keep up with it. All credit reporting companies will give you one free credit report a year. Take a very close look at these and if you notice any discrepancies regarding your credit, then immediately talk with the credit reporting company and prepare to have these items removed. Knowing this information and what to expect will make the loan application and credit rebuilding process less stressful and manageable.
Paul McParland has been involved in finance and real estate for more than twenty years.
Article Source: http://EzineArticles.com/?expert=Paul_Mcparland
Thursday, February 12, 2009
Tuesday, February 10, 2009
Can a Credit Card Rebuild Your Credit Rating?
Can a credit card repair damage your credit rating? Yes, a credit card or loan account can help improve your credit score, but you will need to be very diligent in making timely payments for many months. If your credit rating is poor, it generally is because you have made a few mistakes in the past. Perhaps you were late in making payments, or missed a couple, or even have gone through bankruptcy. You still can turn around your credit rating to a positive, and actually it will not take all that long to do so. Use debt consolidation or balance transfers if you must to get better interest rates.
First take a look at your credit record. You can obtain this free once a year from each of the "big three" credit reporting agencies, Equifax, Trans Union, and Experian. There is no charge for this. Some people pull one up every four months, using a different CRA each time, so that over the course of a year, you have a constant updating of your credit file, since each are relatively the same. This way you can see how your report is changing, and if there is any unwanted activity showing up on it.
Second, take a look at any credit accounts or loans you currently have. Be sure they are all caught up to timely payments. Do not close them, yet. Do not use them again. Keep making the payments, and add extra payment money when you can. In time, the negatives will come to positives again. It may take six months to a year to have some impact. These credit cards can rebuild your credit rating.
Third, consider getting a new credit card or account. If you cannot get one in your own name, try a co-signer. If you can get a family member or friend to co-sign on a small loan, or small limit credit card, that can be helpful to you in obtaining one if you have bad credit history. Do not default on friends or family! The last alternative for getting credit with a bad rating is to find a secured account. Here, you deposit an amount, say $300, and it is held against your purchases. You pay the balance due, and the lender keeps holding your security. Your security limit is the amount on hold. Do this over time, and watch this credit card rebuild your credit rating.
Michael writes on various aspects of credit cards, including how to be approved for credit cards with bad credit.
Article Source: http://EzineArticles.com/?expert=Michael_Strauss
First take a look at your credit record. You can obtain this free once a year from each of the "big three" credit reporting agencies, Equifax, Trans Union, and Experian. There is no charge for this. Some people pull one up every four months, using a different CRA each time, so that over the course of a year, you have a constant updating of your credit file, since each are relatively the same. This way you can see how your report is changing, and if there is any unwanted activity showing up on it.
Second, take a look at any credit accounts or loans you currently have. Be sure they are all caught up to timely payments. Do not close them, yet. Do not use them again. Keep making the payments, and add extra payment money when you can. In time, the negatives will come to positives again. It may take six months to a year to have some impact. These credit cards can rebuild your credit rating.
Third, consider getting a new credit card or account. If you cannot get one in your own name, try a co-signer. If you can get a family member or friend to co-sign on a small loan, or small limit credit card, that can be helpful to you in obtaining one if you have bad credit history. Do not default on friends or family! The last alternative for getting credit with a bad rating is to find a secured account. Here, you deposit an amount, say $300, and it is held against your purchases. You pay the balance due, and the lender keeps holding your security. Your security limit is the amount on hold. Do this over time, and watch this credit card rebuild your credit rating.
Michael writes on various aspects of credit cards, including how to be approved for credit cards with bad credit.
Article Source: http://EzineArticles.com/?expert=Michael_Strauss
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