Tag Archives: good credit

Good credit after bankruptcy

Good credit after bankruptcy

At the point you are in a bankruptcy it no longer matters what happens that led to filing Chapter 7 or 13. For purposes of good credit, what matters is what happens after the bankruptcy discharge. Many people are surprised in how quickly they can qualify for a student, car or home loan after bankruptcy. Starting with a secured credit card, people can rebuild their credit score, especially since they are no longer under the burden of debts they couldn’t pay.

Start with a secured credit card

People are shocked how easy it is to get a secured credit card. All you need to do is deposit the amount of your credit limit with the issuing bank or credit card company. Very simply, if you don’t pay your credit card bill, you forfeit the deposit. Since the bill is guaranteed, it makes sense to give people secured credit cards to fix their credit.

As you use the secured card like a regular credit card your balance and payments will be reported to the credit bureaus and your scores should rise with responsible use of the secured credit card. After a year or more of using the card, the deposit may be returned to you and the card converts to a traditional credit card.

After a few months of credit rebuilding with your secured credit card you may start seeing traditional credit offers in your mailbox and when you apply to one every three or four months or so you may be accepted more often than rejected for new credit opportunities.

Pay down your balance before the due date

Credit repair professionals helping consumers qualify for home loans after bankruptcy say to use no more than a modest amount of your total credit and pay your credit card bill every month before it is due. When paying your bill, they say your credit score can benefit from leaving a few dollars balance instead of paying the bill down to zero.

The idea in not using too much credit and paying it down every month is to ensure that at any given moment during the month the credit bureaus can take a snapshot of your credit usage. It is better not to max out your cards and at any given moment have plenty of money to spend and to pay the bill after you spend.

Good credit after bankruptcy
Helping people get out of debt with dignity and respect for over 40 years.

For more ideas, see Nerdwallet: How to Rebuilt Credit After Bankruptcy

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!

 

To buy or rent in Chicago, a few things to consider

While some people are only interested in owning their home, others are quite satisfied renting for the foreseeable future. As real estate and financial markets change we often see news stories with industry leaders telling us it is a good time to be selling a home or whether it is a good time to buy. Not everyone is in the position to buy a home and many are content with renting forever. While financial experts tell you that building equity in a home is the best way to be prepared for the future and retirement, there are plenty of alternative ways to save for the future and continue renting.

What are some of the barriers to buying a home if the conditions are right?

The first thing most people think about when buying a home is saving up to make a 20% down payment, however a good credit score may be the most frequent concern, especially for people who have struggled with job loss or financial difficulties. The good news on credit is that when you follow a few steps and practice smart credit your score will improve, often quicker than you realize. Read our blog article about credit repair for more information.

When it comes to money down, you might qualify for one of the programs for buyers backed by the government. There are veteran’s loans, FHA loans and similar programs where there is no down payment required. You must meet income criteria, which many easily satisfy.

Why some homeowners are jealous of their friends who rent their homes.

Taxes on homes in the Chicago area are a significant concern for homeowners. Over time, taxes increase and homeowners must follow procedures to challenge their tax rate. Meanwhile, renters aren’t worried about tax rates, and if they have been renting their home for some time, they may be paying significantly less than the current market rental rates.

Homeowners may be jealous of their renting friends who do not have to spend their extra time and money repairing hail damaged roofs, windows, air conditioners and so forth, on a seemingly endless list. Renters are also the envy of homeowners who get new neighbors that frustrate their living situation. It is not so easy to pick up and move, especially if the housing market is not in favor of sellers.

Saving money for the future without having equity in a home can be easy.

While the traditional plan for many was to pay off their house before they retire so they only must pay tax and not a mortgage, many people today elect to rent. The overall cost of home ownership versus renting can be a close equation. If while the homeowner spends money on repairing a roof, the renter puts that same amount of money in an investment, they may be in a good position to start and continue saving for the future.

About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.

Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start.

Don’t forget to keep up with us on Facebook, Twitter, LinkedIn and Avvo, where you can read client and peer reviews!