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Credit cards can increase your purchasing power, but how many credit cards are too many? There are both pros and cons of having multiple cards.
Continue ReadingIf you haven’t been inside one, you’ve almost certainly passed by one. They’re those non-descript buildings typically adorned with brightly colored awnings or neon signs proclaiming “PAYDAY LOANS” to the world. You’ll find them in most towns, large and small, in states where they’re legal. In fact, according to a report by NBC news, there are now more payday lenders in the United States than McDonalds or Starbucks!
The concept of credit is relatively simple: A borrower receives money or goods now with a promise to pay a lender back later, typically with interest to compensate the lender. But credit is not just a single monolithic thing. Did you know there are actually three main types of credit that show up on your credit report and are used to calculate your credit score?
There’s no getting around the long road to building credit after bankruptcy. Once you have it on your credit file, it will be harder to get approved for different types of financing. But, you aren’t stuck with a lifetime of declined loan applications because you can always take meaningful steps towards rebuilding your credit. And over time, every step you take towards improving your credit score will bring you one step closer to being able to qualify for credit cards after bankruptcy, loans and even a mortgage.
This material is for informational purposes only and is not intended to replace the advice of a qualified tax advisor, attorney or financial advisor. Readers should consult with their own tax advisor, attorney or financial advisor with regard to their personal situations.