Credit Counseling Demystifies Credit After Filing Bankruptcy

You may be surprised to learn that after filing bankruptcy, your credit score may actually improve.

Afiling bankruptcy in homer can improve credit in long runfter bankruptcy, you no longer owe money to unsecured creditors. In other words, rather than being over your head in debt, the bankruptcy erases your debt, which in turn increases your credit score.

Remember that bankruptcy remains on your credit report for at least 10 years. However, that doesn’t make it impossible to secure new credit, although you can expect to pay subprime interest rates.

Interestingly, a recent study involving people who filed bankruptcy shows that these individuals received more offers for new credit compared to people who had not filed bankruptcy.

Credit Counseling Explains the Process

As experts on credit counseling in Homer, we’d like to remind you that credit card companies make money off interest and fees. These companies also know that most people just out of bankruptcy do not pay full credit card balances each month. As a result, the companies make significant money on high interest, but also things like late and over limit fees.

Once credit card companies obtain your name from a bankruptcy filing list, they will inundate you with one credit card offer after another. The same is true from finance companies offering car loans. As long as you have steady income, companies that offer car loans will come out of the woodwork. In both instances, these creditors know you are eager to rebuild damaged credit, even if it means paying a higher interest rate.

The exciting news is that it only takes 2 years after bankruptcy to qualify for a normal interest loan.  Our office is offering a post-bankruptcy coaching program to help you increase your credit score so you can qualify for a mortgage or refinance in just 2 years.  Call our office today at (607) 753-9226.


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