Tips for Obtaining Credit During a Bankruptcy

When you're forced to declare bankruptcy it can seem as if you have few options concerning your own credit. You might be concerned that you'll never be able to even cope with a financial emergency much less establish new credit if no one seems to trust you. When you learn how to get credit during bankruptcy you take a step toward getting back control of your finances. Understand your situation thoroughly. Make a budget yourself or see a finance counselor. Check out various sites like www.creditcounseling.org to find a good counselor. If you have any doubts about a debt counselor then visit the Better Business Bureau at www.bbb.org and check out their reputation to see if they have any complaints made against them by clients. Seeing a counselor is a good idea because they can help you get back on track with a budget. It also looks good if you are trying to get credit as it indicates your seriousness in getting your finances in order.

Regardless of whether you get a counselor or not you still need to know exactly how much money is coming in and how much is going out. Pull out your paystubs and if you get paid varying amounts then write down how much you've received monthly for the last six months. Add these figures together and divide by six so you have an average salary figured out. Go over old receipts and bank statements to find out how much you routinely spend on the essentials like food, utilities, rent, and insurance on a monthly basis. Subtract this new figure from your take home pay average and you now know roughly how much money you can spend on paying down any debts you take on after this point.

Think of getting a secured card. A secured credit card is much like a pre-paid phone. You apply with a credit card company for the card, but you either pay in advance in an amount between $500- $1000 and this will be the amount of credit you can have with the company. The credit card company might instead ask that the money be placed in a secured account at the bank of their choice.

The idea is to keep paying the card back as soon it is used. You don't want the money from the secured account to ever be used, especially since there are usually serious penalties if the credit card company dips into the account to pay off the debt. The good thing about secured cards is this is a good way to work on rebuilding your credit if you pay on time.

Check out sites like www.creditcards.com or go to a major credit card site and look for secure card options.

Step Four:

Go to sites such as www.freecreditreport.com and keep an eye on your credit ranking. Applying for a high interest credit card is the option since while it will make bill payments more difficult it is one of the quickest ways to repair your credit as you make the payments on time above the minimum payment each time. Sites such as http://www.badcreditrus.com/ list the credit card companies you can investigate for high interest cards.

These might not be the type of credit you are used, but these are safest ways to get new credit and repair your financial reputation.