Monday, March 26, 2012

Can You Get Credit Shortly After a Bankruptcy?

Can You Get Credit Shortly After a Bankruptcy?

It's possible to qualify for new credit just months after a bankruptcy, according to Microsoft Money. However, the wait may be significantly longer for really big purchases, such as a house.


    Certain kinds of credit, such as secured credit cards and secured installment loans, are available virtually immediately after bankruptcy. You're required to place money in a savings account, which acts as collateral and makes approval easy.

Time Frame

    The time frame on being approved for other types of credit after bankruptcy can vary. Microsoft Money said on its site in February 2009 that mortgage lenders generally want people emerging for bankruptcy to reestablish good credit for at least two years before applying for a home loan. Auto loans may be available almost immediately, with a significant down payment and interest rates of 21 percent or higher.


    Microsoft Money says some of your old debts may still be showing on your credit report although they were discharged through the bankruptcy. The site recommends you review your credit report before applying for credit. Write letters to the credit bureau to dispute any errors.


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