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Businesses that have been around for years are closing their doors. People that have been on their job for years are losing their jobs. It seems as though the price of everything is sky-rocketing. Gas is sky high and the price of food is constantly increasing. More and more people are beginning to lose their jobs and unemployment rates are at an all time high.


credit cards

More than half of the population has been unable to make payment deadlines, mortgage payments, car loans and credit card payments. For many, the solution is to file bankruptcy. Filing bankruptcy gives a person who is hopelessly burdened with debt, a fresh start by wiping out his or her credit.

The downside of filing bankruptcy is that it will negatively affect your FICO score, decreasing it by at least 100 points. Bankruptcies remain on your credit report for 7 to 10 years. Nevertheless there is hope for people that have filed bankruptcy. You can begin to increase your FICO score almost immediately after filing by completing the following steps.

1. Secure credit card. Get a secured credit card. You can apply for these cards at your local bank or online. Do a Google search using key words like secured credit card, or credit card for bad credit. Do your research on each card. Because these cards are for people with bad credit, the interest rates will be higher. Compare each one and choose the one that suits your needs. If you make your payments on time, you will gradually see an increase in your FICO score. This will open the door for you to be approved for other credit offers.

2. Pay bill on time. It doesn't matter if it is a cable bill. Pay it by the due date. This establishes a stable payment history and you will be able to use that as a credit reference, opening more "credit" doors for you.

3. Installment loan. After paying on your secured credit card for 6 months to a year, apply for a car or furniture loan. Make sure to get a loan that is manageable for your budget. Make your monthly payments on time and try to make at least one payment ahead of time. After making your payments for months to a year, you may be able to refinance the loan and get a better interest rate. This will do wonders for your FICO score.

after bankruptcy