As premier bankruptcy attorneys in Utah, we at Utah Bankruptcy know full well how damaging the process can be for various parts of your financial profile. We’re here to provide all your bankruptcy debt relief solutions, and our experts can offer advice to help begin rebuilding things if you’ve had to declare for bankruptcy.
One of the toughest areas we frequently come across in the situations is difficulty in securing future loans. Bankruptcy makes it incredibly difficult to attain a larger loan, such as a home or car loan, and many people who have gone through it are in a very tough position due to these realities. What are some tips for helping get you back on your feet to the point where these won’t be concerns of yours?
Your credit is the biggest factor that will likely be impacted by a bankruptcy, and rebuilding it should be at the top of your list. Focus on missing as few payments as possible on things like credit cards or monthly bills, and consider getting a new credit card with the intent of building up a bit of equity on it. Any bits of debt payment you can afford to make on time or ahead of time – and especially for larger than the minimum amounts – will go a long way to quickly rebuilding credit.
If you’re looking for a big loan for a home or car, especially a home mortgage, you could consider a co-signer to help you quality for a loan more easily. A co-signer with good credit history is attractive to lenders, and may get you the loan you need even if you wouldn’t have qualified on your own.
Be careful here, though. If you don’t have the funds to pay back your loan, your co-signer will be on the hook right along with you – you don’t want to risk their financial health along with your own.
Saving up as much as you can for a solid down payment on a large loan purchase is a great way to show lenders that you’re responsible financially. If it’s at all possible for you to come into the process with money ready to put down, that’s a great head start.
Pay a New Loan
One of the best ways to rebuild credit score is attaining a small, low-risk loan you know you can afford payments on, then using that as the driving force. If the numbers work, try paying twice a month instead of once, or making larger payments. All these tactics can help raise your credit score to a level where you’ll be able to qualify for the next big loan you need.
Interested in learning more? The bankruptcy attorneys at Utah Bankruptcy are here to help.