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If you are a resident of the Cincinnati, Ohio area and are considering Cincinnati bankruptcy, we recommend you find a bankruptcy expert and have him/her explain your options, including both personal bankruptcy and bankruptcy alternatives, as well as help you choose the option that best fits your particular situation. The article outlined below is provided by our |
bankruptcy attorney in Cincinnati.
How will Cincinnati bankruptcy affect my credit?
Cincinnati bankruptcy will affect your credit. In the United States, including Cincinnati, Ohio, a personal bankruptcy will remain on your credit report for a minimum of seven years.
There are three large credit reporting agencies in the United States.
They gather information from credit granters every time you apply for credit. When you apply for a loan or credit card, some of the information you put on your credit application is reported to the credit bureau. They assemble this information to prepare your credit report.
In addition, every month all major lenders (banks, credit card companies) report your payment history to the credit reporting agency.
Legal items, including a personal bankruptcy, are also reported to the credit reporting agency. Public information obtained from the courts, such as a bankruptcy filing, will remain on your credit report in most cases for seven years.
Most people don’t realize that once your Cincinnati bankruptcy is over and you have been discharged, it is possible to re-establish your credit reasonably quickly.
Most people start re-building their credit by getting a secured credit card. They deposit an amount of money with the credit card company, and they get a credit card with a credit limit for that amount. They use the secured card just like a normal credit card, and it appears on their credit report as a regular credit card. This makes it easier for other lenders to then lend you money, since you have now demonstrated that you are credit worthy.
Once your Cincinnati bankruptcy is completed you may be able to qualify for some other consumer loans, such as a secured car loans. However, because of your bankruptcy filing, the bank will probably charge you a higher interest rate, and may require a security deposit, or a co-signer with appropriate credit. Once you have obtained your first loan, you will have established some credit history, and it will then be easier to rebuild your credit.
To re-establish credit after personal bankruptcy you must save money. That way your will have the funds available for security deposits necessary when you get your first loan, so that you can reestablish your credit after bankruptcy.
If you need to file for Cincinnati bankruptcy, or if you want some advice, contact a bankruptcy attorney in Cincinnati today.
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