How long will filing bankruptcy stay on my credit report?

The first thing you need to remember is that your bankruptcy can remain on your record for 10 years after the filing date. However, if you complete your payment plan on time, some people have found that their Chapter 13 bankruptcy has dropped off their credit report in 7 years. This is especially true with your discharged accounts (those that you were late paying or that defaulted prior to your bankruptcy).

Can I get a personal loan after filing bankruptcy?

After you file bankruptcy your credit score will probably fall beneath the lender’s minimum score requirements. Even if your credit recovers, your bankruptcy may be visible depending on what type of bankruptcy you filed. However, the longer it’s been since filing bankruptcy the more likely it is that you can get a personal loan. This is especially true if you’ve been able to take out a credit-builder loan or secured credit card.

How do I find a lender to work with after I file bankruptcy?

The best place to start looking for a personal loan after bankruptcy is credit unions, online lenders, and community banks. You may also want to talk to friends and family members who have good credit to see if they’re willing to co-sign for you. This makes the other person responsible for this debt so it could place a strain on your relationship.

Is there anything I should watch out for?

The main thing that you’ll need to watch out for when you’re looking for a personal loan after you’ve filed for bankruptcy is what’s known as “no credit check loans” or “payday loans.” These loans are made by lenders who promise you a loan without conducting a credit check. They’ll also guarantee an immediate payout regardless of your payment history. Typically they’ll charge higher interest rates. You’ll also encounter either high fees or a high annual percentage rate (APR). This may result in debt that you can’t afford to repay.

Unfortunately, you may not even be told about the APR. This is legal because they charge a flat-rate fee that makes it difficult for you to compare your options. What they aren’t telling you is that they’re charging triple-digit APRs (sometimes as high as 400%). This is why they’re sometimes referred to as “high-APR installment loans” or “high-APR lines of credit.”

What does all of this mean for me?

Before you take out a personal loan, make sure you’ve thought through all your options. While you may find someone to approve your loan, you may find it difficult to repay it along with all the other debts you owe. This could cause you to fall behind on your bills and damage your credit once again. Since you’ll need to wait (2 years for Chapter 13, 8 years for Chapter 7) before declaring bankruptcy again.

The bottom line is that while filing bankruptcy may be the best option for you, it’ll hurt your credit for years into the future. If you need a personal loan during this time, you’ll either need a co-signer or be willing to accept a higher rate. For help with any of these issues, contact us at Super Credit Repair in Clearwater, FL.

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Basics of a FICO score

You may consider the FICO score to be the summary of a credit report. It will measure how long you had credit, how much credit you possess, and what is the available credit limit. It will also consider whether you are paying the repayment on time. The FICO score allows lenders to make faster and smarter decisions about who to loan the money to. It is also helpful for people to get quick and fair access to credit when it is needed. As the FICO scores are calculated depending on the credit info, it is in your hands to influence your score if you are paying the bills on time. It will also help if you are not carrying a large amount of debt and you are making intelligent credit choices.

The arrival of the FICO score

FICO or Fair Isaac Corporation introduced the FICO score almost thirty years ago for providing an industry-standard to score the trustworthiness of a borrower. The score is fair to both consumers and lenders. There were several different scores in existence before the arrival of a FICO score and all of them had different ways of calculating credibility. Some of them even considered political affiliation and gender.

Significance of FICO scores

There are millions of people benefitting from the FICO scores. It allows them to gain access to a credit they require for doing things such as getting an education, covering medical expenses, and buying their first homes. Some of the utility and insurance companies will also consider the FICO score while setting up their terms of service. The fact remains that having a good FICO score can save thousands of dollars in fees and interest. This is because most lenders will extend a lower interest rate when you appear to be a lesser risk to them.

Overall, the FICO scores are fast, consistent, predictive, and fair scores that help in keeping the cost of credit lower for the whole population. If the credit is more accessible, more lenders can lend the money and they are more efficient in their procedures. All this results in driving down the costs and passing on the savings to the borrowers.

Difference between other credit scores and a FICO score

Fair Isaac Corporation is only responsible for creating the FICO scores. These FICO scores are utilized by more than 90% of the top lenders when they are making their lending decisions. The reason? This is because FICO scores are industry standards while making fair and accurate decisions related to creditworthiness. FICO scores help thousands of people in getting the credit they require for new cars, homes, or other special buying. You might have seen advertisements for some other kinds of credit scores. You may have even bought some of them in the past. But these credit scores evaluate your score differently from the FICO score. Therefore, as the other scores may appear similar to the FICO scores they are not.

Different lenders decide what a good FICO score is for themselves. They also use this FICO score differently together with their loan approval process. Generally speaking, most lenders find a FICO score above 670 to be having good creditworthiness. Usually, the higher you score, the lesser is the risk involved and there are more chances of creditors extending a loan to you. The general score ranges established by various creditors allow them to make their lending decisions. They also act as targets for you to achieve. If you live in Clearwater, FL, or Pinellas County, and you are looking for in-depth information about FICO and your credit scores, get in touch with Super Credit Repair for an expert opinion.

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While this may sound like a good plan, most people don’t have any extra income to pay down their debts. Many people have found that declaring bankruptcy is a better way to get out of debt. Unfortunately, when your bankruptcy is over, you’ll need to start from the beginning with credit repair.

Starting over will require a similar mentality as the snowball debt repayment method in that you’ll need to start small. One of the best ways to engage in this credit repair is to obtain a secured credit card. You’ll find that this is an affordable way of building your credit.

Use a Secured Credit Card to Build Your Credit

While most of us don’t see credit cards as loans, this is how credit card companies view them. This view stems from the fact that when you use your credit card to buy something, you’re borrowing money from the credit card company. Just like a loan, you’re charged interest, and the longer you take to pay it back, the more interest you’re charged.

With a secured credit card, you’ll be required to pay the credit card company an amount equal to the card’s credit limit. Typically this is $200. Once paid, you can make purchases of up to this amount and then pay as much as you can each billing cycle. If you fall behind, the credit card company will keep your $200. In this way, you can think of a secured credit card in the same way as you think of a car loan: When you fall too far behind, the bank will repossess your car or, in this case, your $200.

By paying off your balance for numerous consecutive months, you’ll have your deposit returned to you by the card company. The company will then convert your secured credit card to an unsecured credit card (a standard credit card). As you continue to pay off the card’s balance, you’ll gradually have your credit limit increased.

While it’ll take some time before you’ll have enough credit to make big purchases, at least you’ll have a credit card for small purchases. This method is also excellent for credit repair.

Moving Towards Credit Repair

All of this information may come as a surprise for you. You may have thought that once you filed for bankruptcy, you’d never be able to buy anything on credit again. At Super Credit Repair in Pinellas County, FL, we’re here to help you rebuild your credit once the process is over.

Many people have depended on us to help them get a fresh start with their finances. We’ve helped them develop a comprehensive plan that’s got them back on their feet. Call us today to get started working towards your financial freedom too.

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Effect of debt consolidation on credit score

Debt consolidation may have a positive or negative effect on the credit score. It depends on how you handle this commodity. Here are some ways in which it may affect the credit score.

• Payment on time: Due to the lowered monthly payment of consolidated loans, you will find it easier to make your repayments on time. This helps improve your credit score.
• Developing a credit inquiry: A lot of inquiries can shave off some points from the credit score. It will also result in lenders believing that you are relying on the borrowed money too heavily.
• Loss of account history: Credit length and payment history account for around half of the overall credit score. Closure of these accounts means loss of valuable history that may affect the credit score.
• Opening new lines of credit: When the credit score has several debts apart from the consolidated account, and if you add another one to this blend, it will cost you. Lots of lines of credit can result in a drop in credit score.

Some other considerations

• Overall costs over time: The consolidated loan means smaller monthly payments but more money spent over time. If you can meet individual payments it will be a good idea to save money.
• Consolidation loan terms: The loan interest rate for the consolidated loan has to be lower than the normal interest on other loans. In case you feel that you are unable to make the repayment even with the consolidated terms it is not worth it.
• Selecting the right lender: Perform thorough research before opting for a place for consolidation. Many lenders will offer enticing offers however, several of them have even worse overall terms than before. Keep in mind that lenders are not impartial and in the end are trying to make money.
• Money habits: Consolidation of debts cannot fix your money handling habits that resulted in the problem getting worse.
• Length of repayment: Sometimes you are almost done with the repayment of a loan. In such cases, it is a good idea to complete the repayment rather than opting for a longer length repayment.
• Affordable payments: In case you are not able to afford consolidated repayments you might rather wish to consider bankruptcy or debt settlement.

Debt consolidation is extremely useful in lifting the burden of monthly repayment from your shoulders. However, there are many other risks involved in it. It is not a decision you can take lightly. The biggest advantage of debt consolidation for several people is the smaller monthly repayments but takes sufficient time to ensure that it is worth the effort and is useful in your present circumstance. It is also significant that you are committing yourself to improve your financial habits and restore your credit. If you are looking to get help from professionals for improving your credit score in the Clearwater and Pinellas County, FL area, look no further than Super Credit Repair for expert and experienced help.

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Although bankruptcy filers start with a poor credit score, several steps can help in improving their time. Some of those have been discussed below:

Obtain A Secured Credit Card
People filing for bankruptcy might be hesitant in applying for a secured credit card, especially those who had large amounts of credit card debts in the past. However, obtaining a secured credit card in this scenario facilitates rebuilding credit and improving it further. You should look for a card that charges an annual fee of less than $30 and an interest rate of 15%.

Check Your Credit Score
Most people avoid checking their credit scores, but it’s an important part to rebuild credit. People after filing bankruptcy should not only check their scores but try to check inaccuracies too. They should be checking their credit scores and reports regularly as small improvements often keep them motivated to improve their credits further.

Pay All Your Debts In Full Each Month
In an attempt to reestablish credit, bankruptcy filers should always pay off their debts in full each month. Such practices help in informing the creditors that you are managing your debts better. Moreover, full monthly repayments have a positive impact on your credit score.

Stay Patient
People filing for bankruptcy often try to rebuild their credit score as quickly as possible. However, rebuilding takes time and as per Consumer Financial Protection Bureau, a bankruptcy stays in a person’s credit report for at least a decade.

After filing for bankruptcy in Florida, a person might feel overwhelmed to establish good financial habits that benefit his/her credit scores on a long-term basis. Reaching a lawyer and following the filing process provides legal advice and guidance.

If you have any doubts or have recently filed for bankruptcy, you can consult Super Credit Repair. The company has experts who can guide you to improve your credit scores in Clearwater, Florida. They not only help in improving your scores but also guide you to maintain a good credit score for the long term.

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Widespread medical debts

Another survey conducted by UPI found out that most of the U.S. citizens are aware of at least a single person struggling with medical debts. Approximately one in seven people has someone living in the house with medical debt. The number of people having distant relatives with debts is likely to be significantly higher. These long-term medical debts can be mostly found in people that earn less than $40,000 every year. Around 28% of these households carry medical debt in comparison with 6% of households earning $1, 00,000 every year.

Fewer resources for covering the emergency

Various respondents to the survey lacked confidence in their capability to cover for medical emergencies. More than 25% of people admitted that they will be forced to borrow from someone to pay a medical bill of $500 and above. Others said that they will pay for medical expenses by using a credit card and carry the debts. Florida residents must develop an emergency fund just because of these reasons. Several people having insurance carry massive deductibles in the excess of $5000 in several cases. Therefore people need a lot of resources to cover for medical emergencies without getting a loan.

Nothing to fear in medical bankruptcy

When you have medical bills that cannot be paid there is only one option that the hospitals will tell you about and that is medical bankruptcy. You will need to file for chapter 7 protection that can eliminate all the medical debts. But, keep in mind that you can file for chapter 7 just once every 8 years. It means that you must not file for chapter 7 until you are finished with the necessary medical treatment. Most fears about medical emergencies are mostly overblown as found out by several people. Rebuilding your credit may take a lot of time but it is something many people have achieved. With the years rolling by the negative effects of medical bankruptcy start to reduce and it becomes to get car loans or other kinds of loans. Many such people have received offers for personal loans and credit cards immediately after filing for a medical emergency.

Implications of COVID-19 pandemic

With a sharp rise in healthcare costs in the U.S., the problems faced by Americans before the COVID-19 pandemic has only become compounded as newer challenges are being presented by the pandemic. During recent months 14% of U.S. citizens having COVID-19 symptoms have reported that they are avoiding the necessary health care due to the costs involved. More than 80% of the people expressed concern about rising drug costs because of the coronavirus pandemic.

The bankruptcy attorneys working at the Weller Legal Group have helped many clients in the Clearwater, FL area to eliminate debt and take charge of their lives. You can also confidentially discuss your problem. Call them now to schedule a consultation regarding medical bankruptcy.

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It might also have a detrimental effect on your credit score. Are you aware that filing for bankruptcy can stay on your credit report for up to 10 years?

Unfortunately, in some circumstances, not filing for bankruptcy might also have a negative effect on your credit score. In other words, any step that you decide to take – to file or not to file – might come with repercussions. But as one would expect, opting for the lesser evil of the two options might work to your advantage.

By filing for bankruptcy, you are given an opportunity to have your debts resolved, and such might be done by either discharging them all together or by abiding by a court-ordered payment plan.

Still cannot make up your mind as to which way you should go? Continue reading. Below are some of the things you need to know about the effect of bankruptcy on your credit score:

How Long Will Bankruptcy Stay on Your Credit Report?

Actually, bankruptcy as well as the debts associated with it will mar your credit report in different manners. For instance, a completed Chapter 13 bankruptcy, which is also sometimes referred to as wage earners bankruptcy, might stay on your credit report for as long as 7 years.

In addition, all of your discharged debts may remain on your credit report for up to 7 years after they are discharged. The debts that were dismissed might stay on your credit report longer.

Such can happen because in a Chapter 13 bankruptcy your debts may remain active until the end of the payment plan that can last anywhere from 3 to 5 years. So yes, all of your discharged debts might stay put even after your bankruptcy filing.

On the other hand, a completed Chapter 7 bankruptcy, which is also known by other names such as liquidation bankruptcy and straight bankruptcy, might stay on your credit report much longer – up to 10 years. Furthermore, all of your discharged debts can remain on your credit report after 7 more years, generally speaking.

So whether it is Chapter 13 bankruptcy or Chapter 7 bankruptcy, it’s inevitable that you will have to face the fact that all of your debts that were discharged might outlive bankruptcy itself on your credit score.

Is It Possible to Improve Your Credit Score after Bankruptcy?

The good news is your credit score doesn’t have to look horrid for the rest of your life after filing for Chapter 13 bankruptcy or Chapter 17 bankruptcy.

There are a handful of things that you may do, which might improve your credit score:

• Reinstate credit score ASAP. The goal in this strategy is to prevent your report from having a “hole”, meaning there is a long time period in which you seem to have no credit at all. And this is why it is a good idea for you to apply for credit as soon as the bankruptcy is discharged so that you may have your credit history reinstated as well as your credit score rebuilt. Such can be commenced by the likes of applying for secured credit cards, store credit cards or car loans – yes, any one of these is possible despite of your credit report being tarnished.
• Be careful when grabbing credit card offers. Right after having your bankruptcy completed, you might receive new credit card offers. Before grabbing any one of those tempting offers, do your homework first and remember to read the fine print.
• Refrain from applying for many different accounts. Lastly, even if there is a strong urge for you to apply for numerous accounts, desist from doing so. According to CreditCards * Com, about 10 percent of your FICO score is established by whether or not you have recently applied for new accounts. Although it’s true that applying for new credit might help rebuild your score, it’s might be a good idea for you to consider spreading your applications over time.

*The information provided in this article should not be considered legal advice that can only come from a qualified attorney. Paralegals may not provide legal advice except where permitted by law.

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