September 5, 2017

Many people think you can’t get credit for seven years after a bankruptcy – is that true?


That story is just another urban myth that is based on the length of time that the credit bureaus report bankruptcy filings.  The fact is that almost everything, good, bad and indifferent, is reported for a period of seven years on your credit bureau report.  And that includes a bankruptcy.

But since the credit report is only one tool that lenders rely on it is not a “deal breaker” when seeking new credit.  Some creditors deliberately target discharged bankrupts as good prospective clients for several reasons:

1)      They don’t owe any debts;

2)      Since they have less bills they have more money; and

3)      Most are actively trying to re-establish credit and don’t want to “screw up” again!