Few things in adult life are worse than bankruptcy. Bankruptcy happens when you are so deep into debt that there is no way you can get out. It is not a quick fix; it is an act that causes serious consequences in regards to your future. It takes years and years for it to fall off of your credit report. For a certain number of years, it will be next to impossible to get a credit card, buy a house, get a car, or even rent an apartment. However, there is life after bankruptcy. You’ve just go to rebuild your credit which takes time. Many wonder how long they’re going to have to wait until they can buy a new house later on down the road once they’ve rebuilt their credit report. This is near impossible to say, as many things come to play in regards to this matter.
Expect the bankruptcy to take about ten years to be removed from your credit report. During this time, you’re going to have to be more financially responsible than you’ve ever been before. Sacrifices will have to be made. You’ll need to constantly monitor your credit so that you are always aware of what you can be doing better. There are tons of great apps that you can use on your cellphone that don’t pull your credit, such as Credit Karma. These sites update your score about every 7 days. Once a year, you are able to pull your credit report without a hard inquiry from each of the credit bureaus. Be sure that you are extra careful with all of your personal information. Identity theft is on the rise today, and if you have filed for bankruptcy, the last thing you need right now is a case of identity theft as well.
You’ll need to get a secured credit card from a bank that offers them. These cards come with pre-set limits, that usually have a maximum of a $300 credit line. You should spend no more than 10% each month on the card, and pay it off immediately. The effort won’t pay off right away, but after a few months you’ll start to see your score rise. Then eventually, you’ll be able to apply for a non-secured card. Tip: when selecting a credit card company, try to find a secured card that has the option to upgrade to a regular credit card. You don’t want to be stuck with a secured card forever. However, you might not have much of an option.
You should ideally wait about two years before applying for a home loan. Before applying, you should make sure that your credit report looks attractive to a lender. If you apply too early, you risk getting a hard inquiry on your credit report which will dock your score. Always avoid applying for credit either too early, or if you think you might not get approved. The important thing if you’ve filed for bankruptcy is to keep your spirits up. Things happen. The important thing is your attitude, and what you do to fix a mistake after the fact.