How soon could one buy a home or a car after a settled bankruptcy?
2007-03-15 02:19:16 · 17 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Of course you can. My bankruptcy was discharged almost 6-years ago and I have purchased 3-vehicles one at 3.9% and a home since then. I purchased my home 3-years ago with no money down and got a great rate 6.5%.
The trick is to re-establish your credit as soon as possible. After you bankruptcy is discharged you will start receiving all kinds of mail from car dealers and credit card companies. Be careful, read the fine print, most of the credit cards have very high fees (try Orchard bank) and the car dealers will charge you very high interest rates. I know I am one.
This takes time and I was lucky because I had an existing loan with Ford that I pulled through my bankruptcy and demanded that they continue to report to the bureaus. This resulted in after 12-months in my credit score going up over 150 points.
2007-03-15 03:13:23 · answer #1 · answered by ? 7 · 1⤊ 0⤋
Unfortunately, people that file for bankruptcy go back to the same financial habits soon after, because no one else is looking after the decisions that they make. Credit Card companies especially love the newly bankrupt fools...You pay a higher interest rate and the cycle never ends.....your answer depends on what state you declared bankruptcy. Most tend to demand you wait at least 1 to 2 years....Others allow you to go ahead and take your chances.....You are the one that will pay in the end anyway.....and avoiding another bankruptcy is what your FIRST priority should be...if not you can go to jail if you file within 7 years.....good luck and make better choices this time around.
2007-03-15 02:25:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You certainly can. Following a bankruptcy you will almost immediately start to recieve letters in the mail offering you credit cards and such. The interest rates will be high, but you could start building your credit again with just a small amount. Get a card, put about $20 on it and pay it off each month. After six months your credit will start to be on the upswing. Many companies are willing to work with people even after a bankruptcy. As long as you show you are starting to rebuild things.
Best of luck to you.
2007-03-15 02:22:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can improve your credit enough to buy a home or car again.
You may need to get a secured credit card, carry a small balance on it and never ever be late with a payment.
Do that long enough and your credit score will improve enough that someone will loan you $ for a car at a higher rate than their best rates, but still much better than the 18-23% or so you could get now.
2007-03-15 02:23:01 · answer #4 · answered by MithrilHawk 4 · 1⤊ 0⤋
Your bankruptcy will stay on your credit records for 7 years. During this time, you may still qualify for loans but the interest rates offered to you will be significantly higher.
2007-03-15 02:22:31 · answer #5 · answered by kja63 7 · 0⤊ 0⤋
The bankruptcy remains on your credit report for 7 years. However, you can help your credit score by paying all your bills on time each month. One of the main things that is looked at when applying for a loan is reliability on paying bills, especially your rent/house payment. This is the number one consideration with loan companies such as Fannie Mae.
2007-03-15 02:22:53 · answer #6 · answered by Templarwhip 3 · 0⤊ 0⤋
Actually I know many people who got new cars after bankruptcy. Its weird I know. It doesn't get off your record for 7 years. I guess all those places that give you a line of credit only care about how much you have for payments. Not how good you are at making them. Who woulda Thunk it. lol
But seriously. Right after you file it.
2007-03-15 02:21:49 · answer #7 · answered by Anonymous · 0⤊ 0⤋
probably for a crazy interest rate. You could have someone cosign for you. I think it takes 7-10 yrs for a bankruptcy to come off of your credit report.
2007-03-15 02:21:48 · answer #8 · answered by steven c 2 · 0⤊ 0⤋
You could buy a car with bad credit from those dealers that advertise good credit no credit or even bad credit. as for a house this is trickier things stay on your credit report up to ten years I have been told even longer in some cases. As for ways to clean up or re-establish credit they have free government programs to help like going through credit counseling or a budget program. these help so you not only don't become bankrupt but learn how to save money.Some even have how to buy a house program these give you housing funds if you complete their program towards your house.
2007-03-15 02:31:01 · answer #9 · answered by tifferl 1 · 1⤊ 0⤋
Home will take a while, but you can get a car right away...just pay high interest. Takes 10 years for records to disappear from credit report.
2007-03-15 02:22:02 · answer #10 · answered by Anonymous · 0⤊ 0⤋