January 14,2007
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A Fresh Start After Bankruptcy: Part 3 of 4
It's a popular and tenacious misperception that bankruptcy is truly as "fresh start" in and of itself. Sure, it's the only way to rid yourself once and for all of the burden of crushing debt. However, bankruptcy carries stigma and prejudice long after the period of actual judgment has passed. This series offers steps by which smart consumers can assure that they do, in fact, get the clean start that bankruptcy can mean.
Our third recommendation to you is one of the trickiest – establishing new credit Getting your credit together as soon as possible will be crucial to your new financial success. It shouldn't surprise you that this will not be easy – most credit card companies and other traditional lenders will not be interested in opening accounts for you. There are at least a few ways to get around this, however. Some banks may be willing to let you open a credit card off the balance in a savings account. A similar option is a passport loan – a secured credit card with a usually high interest rate. Neither option is particularly desirable in the long-term, however, you will want to do something as soon as possible to start building better credit.