There can be many reasons that people in Georgia avoid filing for bankruptcy, even when they cannot find any other way out from under a mounting pile of debt. One of the concerns commonly held by consumers is the fear that they may never be able to get credit again if they go through a bankruptcy. This is simply not true. Post-bankruptcy, people can get credit cards, automobile loans and even mortgages if they take the proper steps.
According to Bankrate, the best way for a person who has undergone bankruptcy to rebuild credit is to start small and build from there. This may well mean getting a secured credit card. This is a card that requires a person to essentially front the money to the bank that acts as their credit limit. Cautious use of this card with prompt repayments can lead to the acquisition of an unsecured credit card.
A car loan may be the next step in the move toward better credit health and options. Once a bankruptcy is complete, a person’s debt-to-income ratio is much better and this may help lenders be willing to provide them a loan. It may take a few years, but even applying for and receiving a mortgage may eventually be possible.
NerdWallet adds that consumers should regularly monitor their credit reports. They should also take active steps to correct any inaccurate information they find. When obtaining new credit, keeping balances low and paying them off each month shows creditors that they are able to be financially responsible.