Credit and Debit Cards
Bankruptcy Law

How long does it take for a person who has filed a Chapter 7 and has been discharged to apply for a credit card and or to finance a new car?

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Wiki User
2006-08-18 00:38:12

While a Chapter 7 filing stays on your credit report for 10

years, it's important to remember that after filing for bankruptcy,

you are actually less of a credit risk, since you have very little

outstanding debt. Here are four tips to repairing a damaged credit

rating: Apply for a secured credit card. These cards are backed by

money that you deposit in a special account, so you don't run the

risk of falling behind on payments. They'll make a good impression

on your credit report. Ask a trusted friend to co-sign on a small

loan, preferably from the bank that holds your checking account.

Repayments on the loan will help your credit rating the same way

they would if you took the loan out yourself. Open a savings

account, if you don't already have one. Try to deposit 5% of your

paycheck directly into the account. If you have the means, you

should consider getting a car loan or a mortgage. To avoid a higher

interest rate, you'll have to provide proof of employment.

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