Bankruptcy, although detrimental to the appearance of your credit report and score, is your opportunity to wipe the slate clean of all your previous mistakes and rebuild your credit in order to make needed purchases. Rebuilding your credit is not as hard as you might think - but its certainly not something that can be undertaken overnight. Expect to experience some rejection when your bankruptcy discharge is fresh - and make a few baby steps towards larger purchases before you get your hopes up. Getting The Car You Want And Need During the first year following the discharge of your bankruptcy, you should not plan on receiving financing in amounts that will be sufficient to purchase an automobile. However, during this time, you should check into alternative means - such as leasing a vehicle for the first year. Also, leasing your new car or truck will give you ample time to save towards a down payment on the car you want. Also, you will have time to lay the foundations of a better credit score. Small Steps To Big Loans The first step you should take when you come out of bankruptcy is to check your credit report and score. There are three major credit reporting bureaus in the United States - Trans Union, Experian, and Equifax. All three may provide a slightly different view of your financial situation - and thus you must check with all three bureaus to determine that all accounts that were discharged during bankruptcy are duly noted as such. If an account that was discharged during bankruptcy is listed, for example, as being in collections - this will bring your score down even farther. Be sure to immediately contact the bureau holding the report if you discover any such errors being listed. Once you are assured that your credit report accurately reflects your financial picture, you should establish both a checking and savings account. Having both of these accounts paints a more stable picture of you as a borrower in the eyes of potential lenders, and you will need the savings account to begin saving towards the down payment for your new vehicle. Next, you should establish at least two secured credit card accounts. A secured credit card is a credit card that is secured by a deposit on your behalf in the amount of credit that you wish to have extended to you. Shoot for at least two accounts with $1000 to $2000 credit limits. Managing each of the accounts in the appropriate manner is paramount to building your credit score. Never use more than one-half of your available credit - and always run a balance of thirty percent on each card. Pay off any amount exceeding thirty percent each and every month to stack up points on your credit score rapidly. After one year of great payments, most card issuers will refund your deposit (which you can apply to your down payment) and convert your secured credit cards over to unsecured credit cards - which will be a big plus for your credit report. Reaping The Rewards Of Being A Good Borrower If you follow a regimen of timely payments and the guidelines above, you should, within one year, have added sufficient points to your credit score and be ready to get approved for the automobile of your choice. You can find great rates on automobile loans for those with prior bad credit histories by applying online with lenders who do business on the Internet. These lenders have the greatest rates of approval in the lending industry.
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