It’s no secret that the American economy runs almost entirely on the credit system.  It used to be that very savvy or wealthy people could simply shun the system, and pay cash for anything they needed- or simply make do with what they had.  But this is no longer the case.  Credit has come to control extremely important areas of our lives that are beyond the boundaries of money.  This has created a wide variety of problems that did not exist previously, but ones that nevertheless must be understood in order to rebuild credit after a time of crisis.  This is especially true after a bankruptcy.  And with the increasing numbers of Chapter 7 Bankruptcy filings in Nassau County each month, this means that a large number of people need to pay extra attention to their credit right now. 

 

                  Most Americans have heard the news that banks are tightening their lending practices.  While the end result of this will only mean struggles for every section of the economical food-chain, what it really means to you is that your credit is more important now than it ever has been.  If you have recently filed bankruptcy, your first financial task after your case is approved should be to begin repairing the damage to your credit.  Obtaining a secured loan or a secured credit card is one of the fastest ways to begin doing so.  Other methods might involve piggy-backing on a relative or loved one’s credit.  The faster you begin to rebuild, the better, because if you are like many New Yorkers, you may have lost your job in conjunction with your bankruptcy.  Thousands of jobs, especially in metropolitan areas, are now requiring extensive credit checks prior to employment.  If your credit is not up to par, then you are not considered up to par for the job. 

 

                  Perhaps the year has been exceptionally tumultuous for you, and you are now in the process of relocating.  Did you know that many apartment communities, suburban developments, or other types of housing (both public and private) can use your credit as determination of residency?  If you have collection accounts or any other items considered seriously delinquent appearing on your credit report, you will not be able to rent from these places.  What is worse is if you paid an application fee, they are usually non-refundable, even if you are not approved.  This is just another reason why rebuilding your credit after a bankruptcy is a vital part of your immediate future. 

 

                  In addition to all of the above scenarios, there is also the fact that you might need credit to actually buy things.  Perhaps your car has seen better days, and you need another.  Chances are that you probably will not be in a position to pay cash for a safe vehicle.  This means that your credit needs to be in the best condition possible, because although you can get a loan even with terrible credit, you’ll likely pay 18% interest or more.  If this is the case, you could end up paying double what the vehicle is worth over a three or four year loan. 

 

                  Be aware of these situations.  Remember that bankruptcy is a way to start clean again, which means that your credit rating will need immediate work if you expect it to improve.  And don’t forget- credit is not just about money anymore.  It’s simply too important to ignore.   

 

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This entry was posted on Thursday, December 11th, 2008 at 8:34 am and is filed under General Information, Long Island Bankruptcy, Repairing Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.