It is possible to access credit after filing for bankruptcy.

Many who file for bankruptcy are surprised how quickly offers for new credit cards come in the mail. Yes, you filed bankruptcy and, yes, you can still access credit.

A common myth is that you will be unable to get credit after you file for bankruptcy. The truth is that you are often more attractive to a creditor after you file bankruptcy because your financial slate has been wiped clean. You have eliminated burdensome, high interest debt and are ready to access credit on new terms. If you are contemplating filing bankruptcy it is likely that you have already fallen behind or are on the verge of missing payments to creditors. Since bankruptcy will wipe out most of your existing debt you will be more attractive to credit card companies, banks and other lenders. Additionally, if you are filing bankruptcy under Chapter 7, you will not be able to file another Chapter 7 bankruptcy for 8 years, which makes you a good credit risk in the view of many creditors.

There are often strings attached…

The issue after filing for bankruptcy is not accessing credit, but the terms upon which credit is given. Obtaining credit after bankruptcy may come at a higher cost. Initially, creditors will likely charge you higher interest rates and require higher down payments. Credit card companies which once offered cards without an annual fee may require such a fee. The key to eliminating these added expenses is to start saving money and make sure all bills are paid on time to put good marks on your credit report. The length of time to re-establish good credit varies from situation to situation and will depend on the state of economy and lending institutions, but keep in mind, on time payments and responsible use of your new found financial freedom will do wonders for improving your credit score. Below is a list of six important things you can do to rebuild your credit score after filing for bankruptcy.

Steps you can take to rebuild your credit…

1. reviewing your credit reports for inaccuracies;

2. writing letters to each of the credit reporting agencies detailing the financial hardship that led to bankruptcy;

3. stay away from payday loans;

4. pay EVERYTHING on time;

5. open a credit card account, use it for a small purchase every month, and pay down the balance completely;

6. live within your means, do not unnecessarily increase debt in order to buy things you really don’t need;

If you belt tighten, pay attention to the calendar and get organized, you’ll most definitely be able to get credit after filing for bankruptcy. If you’re considering bankruptcy, contact an attorney to discuss your options.