Bankruptcy Credit Cards

http://LeahCoss.ca
Hi everyone, how are you. It’s Leah Coss with the Mortgage Centre. And I wanted to go over just a couple of really quick tips on first steps that you need to take once you’ve declared bankruptcy to get your credit back on tracks so that you can eventually buy a home and get a car and essentially buy those things that you probably were hoping you can buy right now. So first off, once you have declared bankruptcy, first thing that has to happen is you have to get discharged. So, once you have been discharged, it is possible if you get back right back on track with your credit. That you could be buying a home in a year and a half to three years. It is very, very possible. It is not like what most people think where it is a seven years of bad luck kind of thing.
It is not like that. It depends on what your track record is like. How quickly you start to get a positive credit history and so forth. Now, a lot of people get very discouraged though because they are going to buy a car or all these things and getting credit cards and getting declined. The trick to it is that you have to give someone something to hold on to collateral in order to get credit from them.
And the easiest thing to do is get a prepaid credit card. So go to your own bank, whatever bank that is and ask them. Can I get a secured credit card and what they will probably do is say, give us 500 dollars and we’ll give you a credit card with 500 dollars on it. After a couple of months of you doing this, it will actually happen pretty quickly.
Use that credit card once a week, once every two weeks. Make the payments on time if not right away and soon you will find that now they will give you a 500 dollar unsecured credit line. Then from there you keep using it, you keep paying it, before you know it because once the creditor thinks you are good for it, they will give you any amount of credit that you want.
Just don’t get in trouble with it again. They will start to give you credit cards with 500 dollar limits, 700 dollars limits, 1000 dollar limits and it will just keep escalating from there until you get a reasonable size credit card. The trick is though the fixing any bad credit is taking care of it. You will be penalized so much faster if you miss one payment on your credit card compared to the average person that got no bankruptcies in the past.
So it is important to realize that you need to take your credit seriously and learn from your previous mistakes, whatever it was. Whether it was that you owned your own business, or you got in over your head with student loans and car debts and things like that. Whatever the case was, divorce is also a very common one.
But once you have the opportunity to gain your credit back, you must nurture it and take care of it. There is two things that the credit bureaus look for. One is how long is your credit history. How long is your positive credit history and the other one is how good is your credit. So you need to make sure you got two things on side. One is time and one is a positive track record. And getting a credit card is not an easiest way of getting that started.
So if you have questions about this or you want to own a home sooner, there are other ways. There is private lending as well as leased own programs that I can put you on contact with. So let me know. It all depends on what your objectives are, what your situation was, what your bankruptcy, when you were discharged, and most importantly, what you are doing to get back on track. It will help me to evaluate what options you have to get into a home of your own again.
So Leah Coss with the Mortgage Center. I guess that is about it. If you have questions, give me a call. Thanks so much.

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