After bankruptcy, a person can start rebuilding their credit immediately by acquiring a credit card and paying off a small cash deposit to the credit card lender. Discover how to build a positive credit file with help from a registered financial consultant in this free video on money management and personal finance.
This is financial adviser Patrick Munro, talking about building credit after a bankruptcy. In the current economic environment, that we see out there in America nowadays, many people are facing bankruptcy. Normally, it starts off with a foreclosure, where they have lost their home, sometimes it is triggered by unemployment, where the debts that they were carrying, once they lose their job, and their unemployment benefits are finished with, they just simply can no longer go on financially, and therefore, they must file bankruptcy. This is not reserved for only civilians. It's also companies, as witnessed by the recent crisis of auto makers, but bankruptcy cannot be the end of your financial life. Once you're involved in it, and you finished filing your Chapter 7, or Chapter 11, you can then essentially start building your credit right away, by acquiring a credit card, which will allow you to put a small cash deposit against the credit card, and pay that off to the credit card lender. They'll monitor that, and slowly as it goes forward over the years, they will eventually give you your own credit card, and you will start to then build a positive credit file. This is Patrick Munro, talking about how to rebuild your credit, after a bankruptcy.