Post-Bankruptcy Holiday: How to Rebuild Your Credit After Bankruptcy

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pru2When finances are strained, and collectors are knocking at your door, it can be really tough to know where to turn. When finances reach a boiling point, your only option may seem to be seeking outside help in the form of bankruptcy. Perhaps you’ve filed for bankruptcy – maybe you’ve even been discharged – but are now concerned with learning how to rebuild your credit after bankruptcy. Don’t worry, life happens, and you are not alone. We can help.

Coming into the holidays after filing for bankruptcy can be especially scary. You don’t have that credit card safety net anymore, but finances are pinched and you need a little help to cover holiday expenses. Add to that the fact that you’ve cleared up the debt and you want to rebuild credit so you don’t want to make any poor financial decisions. So what can you do? Is coal the only option for stocking stuffers this year? Stop worrying, there are options – options which will both provide some back up and help you rebuild credit after bankruptcy.

Here are some options to obtain some cash to help you ease the financial burden of the holidays and help to rebuild credit at the same time – some are more positive than others, so just be sure you know what is involved when you make your final decision.

A secured credit card. This is a viable option which will rebuild credit because it shows you are financially stable and making smart choices. This is good for those online purchases that require a credit card. However, because it involves sending the credit card company a deposit equal to your credit limit – you actually won’t receive new credit – you are really just using your own money.

Payday loans. An option, yes. A good one, no – for a number of different reasons. Firstly, although you may be able to receive money right away, these loans don’t report to the credit report and are the most expensive option for getting cash – the fees can grow very fast and can quickly turn into a financial nightmare.

A personal loan. This is, for most, the best option – one that is available even if you are an undischarged bankrupt. This is a good option because, if approved, you can get the much needed cash to use for any holiday shopping, and since a personal loan reports to your credit report, with good loan repayments this will rebuild good credit. This is a win on all fronts.

With the holidays approaching fast, a personal loan, one you can get quickly, can help you get through the holidays without the added financial stress, and help you rebuild credit after bankruptcy.

For more on how to rebuild credit, even after your report has taken a hit, please call Prudent Financial today. Bruised credit is no problem at Prudent. 1-888-852-7647.

 

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