Rebuilding Credit After Bankruptcy

Ok, so this is going to sound counter-intuitive but. . .often the best way to rebuild your credit is through, that's right, credit cards!  The very menace that most likely helped lead to your bankruptcy in the first place.  You see, most credit card companies report monthly activity to the credit reporting agencies - the businesses that determine your credit score.  Therefore, to help build your credit faster you will need to offset your prior credit troubles and tribulations with some positive news.  Now in doing so be careful of potential pitfalls.
The first one is to be very selective in the cards that you apply for and use.  You will very likely begin receiving credit card offers soon after your bankruptcy discharge.  The credit card companies know that you can't file again for several years and they view you as a somewhat safe bet.  CNN recently published an article detailing the 7 best credit cards for rebuilding your credit: http://money.cnn.com/galleries/2011/pf/1104/gallery.best_credit_cards_bad_credit/index.html
The 7 best in their opinion based on low upfront/annual fees and APR are Orchard Bank, Capital One Secured MasterCard, Navy Federal 'n Rewards Secured Card, Citi Secured MasterCard, Mango Prepaid MasterCard, Capital One Cash Rewards for Newcomers & Open Sky Secured Visa Card.
Another thing to be careful about is how you use the cards.  I would recommend to charge a very conservative amount each month - say on things that are necessary like gas and would normally otherwise pay cash for.  Instead, put the cash that you would normally use away in the cookie jar and make sure to pay off your balance in full at the end of each month.
Only apply for one or two credit cards as you don't want numerous inquiries showing up on your credit report.  If you follow these steps and stay current on your car and/or home loan, you should have an A credit rating a lot sooner than you may have thought.

Sesame Street and Credit Cards

Well, this just in.  Sesame Street is tackling another educational frontier - debt.  With millions of adults in the quagmire of debt agony, the developers and writers of Sesame Street are creating a new video program designed to teach financial literacy to children.  While already tackling such topics that confound adults such as healthy living and multi-cultural understanding this is just a new twist on a long policy of helping to educate kids now on problems and issues that they are likely to face as adults.  See more at www.sesamestreet.org/save and www.pncgrowupgreat.com.

Foreclosure Alternatives

Considering a Short Sale?

Although Oklahoma weathered the nationwide slump in home values much better than other states, we have finally succumbed to declining prices.  That equity that you thought you had in your home may seem like it has vanished after your home has sat on the market for months without an offer close to your asking price.  What's even worse is finding out that the grand home-ownership investment that you made a few short years ago has turned out to be a losing venture and you're actually upside down or owe more than your home is now worth.  

You may have heard about or come across the idea of a short sale and believe that this is the answer.  With a short sale, the lender agrees to allow you to sell your home for less than it is worth so that they avoid the costly endeavor of foreclosing on your home.  There are some things to keep in mind with a short sale though.

A short sale can substantially reduce the amount of time you can live in your home. With a short sale, once your house is sold you need to move out so the new owners can move in. On the other hand, if you decide to let your lender foreclose you can't be evicted until your home has been auctioned. This can sometimes be many months after you stop paying your mortgage payment.  This gives you time to set aside payments that would otherwise be going to the lender and give you a financial cushion once you have to move somewhere else.  Even after the auction, you may be able to negotiate "cash for keys" and get paid to move out. Remember a short sale can result in income taxes owed for the difference between the price the house was sold for and the amount that you owed on the house.  

In Oklahoma, while it is not guaranteed, most lenders do not go after borrowers for the deficiency, if any, once a property has been foreclosed on.


www.attorneyok.com