REFINANCING AFTER BANKRUPTCY IN SIX MONTHS TIME

2007-03-08 10:33:40

( Financial )



Individuals who are refinancing after bankruptcy need to start paying bills regularly. An average of six months is usually needed to avail of loans after bankruptcy. Opening a credit card account during this period can help rebuild credit history. A savings account also helps in rebuilding assets after bankruptcy. Lenders consider high cash assets in the evaluation of applications for refinancing after bankruptcy.

Bankruptcy loans

Refinancing after bankruptcy usually offer lower interest rates and an extended repayment period. There are lenders in the market who offer a good bankruptcy loans. Sub-prime lenders are the main providers of refinancing after bankruptcy. However, their loan package is known to be relatively priced higher than traditional lenders.

Some bankruptcy loans require a cash out on a portion of your home equity. However, it you will be better off if you retain your equity on your home.

Improving your credit records

Credit records can be rebuild in an average of two years. Completing your refinancing loan helps rebuild your credit score. Increase in assets in the form of cash and tangible properties furhter improve your credit record. Other ways to improve your credit record is good repayments on your credit cards and other bills. In due time lenders will offer you financial assistance based on your improve credit records.

Lifestyle change

Building your finances after bankruptcy is crucial to your financial management. You need to consider changing different aspects of your life to be able to beef up your finances. You have to take a look at your lifestyle and create necessary change to save on living expenses. You need to assess available financial resources and how to extend its use to impact on your finances. Credit card service can be used to manage your expenses as well as a benchmark to start your good credit record.

You need not lose hope when you file for bankruptcy. Just try to be disciplined in your financial management and you will eventually get back on track.


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