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Does filing for bankruptcy destroy your credit?

If you are struggling with debt in Fort Lauderdale, Florida, you may be reluctant to consider filing for chapter 7 bankruptcy because of the impact you believe it will have on your credit report. It is true that bankruptcy is a negative mark that remains on your report for 10 years. However, it does not mean that you will be unable to get a loan for a house or a car, or receive a credit card, during that time. Rebuilding credit may not be as difficult as you think.

One of the most important things you can do after a bankruptcy, according to the Huffington Post, is to find out your credit score and then keep an eye on it. This number is what lenders look at before deciding if loaning you money is a safe bet. A good number is above 700, but even if your number is around 500, you still have options that allow you to bring that number up and eventually qualify for a decent interest rate.

Most people are able to get a gas card, regardless of their credit score, and this is an excellent way to rebuild credit. After all, you have to buy fuel, anyway. Using the card to make this purchase and then paying the balance each month is a great way to get started. A secured credit card may also be a viable option. These typically include a deposit that backs your credit line, as well as fees and interest. Before applying for one of these, you will want to find one with a decent interest rate – 15 percent or lower if possible – and low annual fees.

While this information about rebuilding credit after chapter 7 bankruptcy is not intended to be taken as legal advice, it may be helpful to consider when evaluating your financial situation.

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