If your business unfortunately ended up in bankruptcy, there are several questions that may make you worry about your position in the market. People would be worried about their credibility after bankruptcy in the market. A string of questions will arise regarding their position such as whether they can retain their credit card? Will they be able to buy a new home? Will their previous credit records get ruined after bankruptcy?
There is a common belief that the bankruptcy will continue reflecting on your credit card for a decade and it will adversely affect your credit score.
Most of the credit card companies allow you to keep the credit card even after the bankruptcy only if you enter into new agreement reaffirming the previous balance. In fact, some of the credit card companies offer new cards for the newly discharged debtors.
You can also buy a new house and for that you do not have to wait for ten years. Studies show that one can own a new house, 18 to 24 months after filing the bankruptcy. It reflects that the lenders are very interested in your down payment and your monthly income.
One can also build credit in the market even after the bankruptcy by following the mentioned steps.
In order to build your credit with the banks, you can use Secured Credit Cards after filling the bankruptcy. This type of card can be earned by depositing some money to establish a credit line.
Make use of your credit card for lesser times and keep your debt-to-credit-limit low by keeping the balance as low as possible. Keep an eye on your credit reports on regular basis even after your bankruptcy.
