December 26th, 2007 by Questions
I keep reading that getting small loans will help to rebuild your credit faster after bankruptcy, but how do you get those small loans? Who do you get them from? We have a secured credit card, but the banks won`t touch us. We are putting money in our kids` RESPs but do not have RRSPs as our income is too low right now to make it worthwhile, and we are trying to catch up on things like long overdue dentist treatments! now that we have the money to do so, so we have not been able to save much…
We are considering leasing a car in the next year (ours is 7 years old and starting to cost us more than it`s worth). That will be a larger, long term payment. Will that help us or hurt us as far as rebuilding credit?
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December 27, 2007 at 12:28 pm, Barton Goth GCO Bankruptcy Trustees said:
You need to discuss these small loans with your bank. At fist it is common for your bank to resist as on paper you appear to be a credit risk. However, it is up to you to convince the bank that you are better off now financially and will be able to handle these small loans.
On thing that may help is if you save up the equivalent amount of money you are attempting to borrow and if the bank is hesitant than you can offer it up as security against the loan. Therefore there is no risk to the lending institution and you will be given an oppertunity to prove yourself (basically the same idea as a secured credit card).
As for a lease, if you make the payments it will likely help you to rebuild.