Rebuilding your credit after bankruptcy is important; but many post-bankruptcy debtors become so anxious to get credit after they exit bankruptcy that they allow lenders to bully them into bad deals.
Let's take a look at some of the bully tactics debtors should avoid falling victim to:
- High interest, high fee, "blood sucking" credit cards that will leave you broke. After bankruptcy, some debtors feel that they should take any credit card they can get. Unfortunately, there are some unscrupulous lenders preying on just that type of mentality. You don't have to take "vulture" like credit cards that bleed you dry with high interest and fees, take your time and find quality cards with no fees and a reasonable interest rate. If you can't find it right out of bankruptcy, then simply wait or get a secured credit card until you can do better.
- Mortgage lenders who want to throw post-bankruptcy debtors into sub-prime mortgages which have high interest and lousy terms. Don't be bullied into toxic mortgages because you are anxious to purchase a home after bankruptcy. Debtors who have been out of bankruptcy for at least two years can qualify for an FHA mortgage with only 3.5 percent down and a FICO score of 640. All it takes is patience and research to find mortgages that give post-bankruptcy debtors a fair deal.
- Finally, don't let your desire to purchase a vehicle stop you from using your common sense after bankruptcy. There are a lot of shady vehicle finance companies who want to take advantage of the insecurities of bankruptcy debtors. Take your time, save your cash and find a car loan which has a reasonable rate and terms after bankruptcy.