Many times, people who have just got their bankruptcy discharged face the problem of rejection from creditors, even for small loans. This can be quite frustrating for people who wish to start their life afresh. One of the major reasons for credit being rejected is the mention of bankruptcy on credit history. Since bankruptcy is public record and stays on the credit report for seven years in case of Chapter 13 bankruptcy and ten years in case of Chapter 7 bankruptcy, people fresh out of bankruptcy can be in for a long duration of living without credit.
According to Dallas based bankruptcy law firm Recovery Law Group lawyers, getting a bankruptcy discharge means that you have gone through all bankruptcy requirements. However, it does not necessarily mean that you have paid all your debts. This causes most creditors to be vary of lending any money to you. It is no wonder that getting new credit just months after bankruptcy is extremely difficult and people often face dejection. If some people get credit, it is at exceptionally high interest, making it a bad decision, especially for people fresh out of bankruptcy.
Being rejected for credit can cause extreme frustration in people; however, applying many times within a short period can add to your woes. It is advisable to let some time pass after bankruptcy before applying for credit. This improves your chances, especially if you keep building your credit using a secured credit card or any open positive credit account. Eventually, the positive credit building helps you get a loan after bankruptcy. For knowing more about bankruptcy discharge and getting credit after bankruptcy, call 888-297-6023.