Depending upon who you are getting your advice from, you may or may not think that bankruptcy ruins your credit. Some say that it does. They say that it is virtually impossible to get credit cards, personal loans, auto loans, and mortgages after bankruptcy. Others say that bankruptcy improves your credit. They say that it wipes out your debt and gives you a fresh start.

There is no doubt that bankruptcy affects your credit. A bankruptcy will remain on your credit report for seven to ten years. However, that does not mean that you will not be able to get credit for that specific period of time. You may have to wait seven to ten years to get credit. On the other hand, there are lenders who are happy to extend credit to those who have filed for bankruptcy – some immediately after a person has filed. They know that it is harder to file for bankruptcy these days, and they also know that you cannot file for bankruptcy more than once every ten years. Therefore, it may be possible to get credit cards, personal loans, auto loans, and mortgages after bankruptcy, and how soon you will be able to do so will depend on which lenders you choose to apply with.

Credit cards and auto loans are the most common type of credit that is extended following bankruptcy. The credit card limits are usually low. The auto loans are secured by the automobile that is financed. It is usually harder to get personal loans and home loans, simply because personal loans are unsecured and mortgages deal with such a large sum of money. To be eligible for unsecured credit, you have to have a good credit score.
To qualify for a home loan, you generally have to have a credit score that does not fall below a certain number. That’s why mortgages after bankruptcy are not usually approved until at least two years have passed. It takes that long after filing to reach a credit score that is acceptable to mortgage lenders.

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Mortgages After Bankruptcy:



Mortgages After Bankruptcy:





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