Although bankruptcy has a stigma to it, it isn’t the end of the world and definitely not the end of your credit journey. Look at 45; he’s filed more times than the law allows and yet still became leader of the free world. Okay, that was a bit much, but you get where I’m going.
Bankruptcy is a fresh start. If you must do it, do it because there is some major debt you can’t get out of. Don’t do it because of student loans. Federal loans cannot be erased with bankruptcy. To get relief you need to apply for a hardship or repayment plan. Believe me, I know the student loan struggle.
Back to the big ‘B’-word… Look at it as a clean slate. You wiped it all and here is your fresh start. What are you going to do with your new found credit? No worries credit card lenders will have no issues helping you out. Within a week after discharge you will receive numerous pre-approved offers. Use it to your advantage. Get those cards and keep that utilization down.
If on the slim chance you don’t get the pre-approved cards then apply for the secure cards. Do what you must in order to get to where you want to be. The next step is to move on to the shopping cart trick (SCT). If you don’t know what it is, please use Google. This is DIY.
The further you are from the discharge date the less the sting will be. So, you may know you can’t apply for certain things until after 2 years. That’s fine. Apply at the 2 year mark. Your good payment history from those credit cards will speak loud and clear. Yes, you filed bankruptcy, but you are showing you can be trusted again. The Big B is not the end for you.
Omegia Keeys
BG Credit Coach
Author/Director
