Q. Can I build credit after bankruptcy? If so, how long will it take to build my credit?
A. Yes, you can build credit after bankruptcy. In fact, you can build “car buying” and “home buying” credit in as little as twelve months from the date of your bankruptcy discharge. It is worth saying that building credit after bankruptcy is more like a marathon than a sprint. Don’t lose your focus worrying about the distance, but rather go about your business one step at a time and one month at a time. This book will guide you to the finish line of a better, stronger credit score.
Q. Is it true that after filing bankruptcy my credit score will be the lowest credit score possible?
A. No. The standard …show more content…
No, at least not the only reason. A post bankruptcy credit score is the direct result of two forces: 1) Past credit history and 2) the bankruptcy filing itself. I estimate that the act of filing bankruptcy drops a pre bankruptcy credit score by approximately 20 to 40 points.
Q. Is it possible to have a good credit score immediately after filing bankruptcy?
A. Yes, but it is rare. For example, if an individual has a pre bankruptcy credit score of 760 or higher, the bankruptcy filing will probably drop that score by approximately 40 points--reducing the post bankruptcy credit score to 720. Since FICO estimates that the national credit score average is 720, a 720 would be considered a good credit score immediately following bankruptcy. Q. Am I allowed to buy a home after my bankruptcy discharge?
A. Yes. There is no law or rule against buying a home after a bankruptcy discharge.
Q. Can I qualify for a car loan after my bankruptcy discharge?
A. Yes. Two minimum condition must be met in order to qualify for a car loan after receiving a bankruptcy discharge. 1) You must be employed, making enough to pay for the car and other minimum expenses, and 2) you must be able to show at least two months of W2 employment statements. Most car loans following bankruptcy will exclude you from the “well qualified” special interest rates, deals and promotions, but this is more likely because of
A. Yes, you can build credit after bankruptcy. In fact, you can build “car buying” and “home buying” credit in as little as twelve months from the date of your bankruptcy discharge. It is worth saying that building credit after bankruptcy is more like a marathon than a sprint. Don’t lose your focus worrying about the distance, but rather go about your business one step at a time and one month at a time. This book will guide you to the finish line of a better, stronger credit score.
Q. Is it true that after filing bankruptcy my credit score will be the lowest credit score possible?
A. No. The standard …show more content…
No, at least not the only reason. A post bankruptcy credit score is the direct result of two forces: 1) Past credit history and 2) the bankruptcy filing itself. I estimate that the act of filing bankruptcy drops a pre bankruptcy credit score by approximately 20 to 40 points.
Q. Is it possible to have a good credit score immediately after filing bankruptcy?
A. Yes, but it is rare. For example, if an individual has a pre bankruptcy credit score of 760 or higher, the bankruptcy filing will probably drop that score by approximately 40 points--reducing the post bankruptcy credit score to 720. Since FICO estimates that the national credit score average is 720, a 720 would be considered a good credit score immediately following bankruptcy. Q. Am I allowed to buy a home after my bankruptcy discharge?
A. Yes. There is no law or rule against buying a home after a bankruptcy discharge.
Q. Can I qualify for a car loan after my bankruptcy discharge?
A. Yes. Two minimum condition must be met in order to qualify for a car loan after receiving a bankruptcy discharge. 1) You must be employed, making enough to pay for the car and other minimum expenses, and 2) you must be able to show at least two months of W2 employment statements. Most car loans following bankruptcy will exclude you from the “well qualified” special interest rates, deals and promotions, but this is more likely because of