Filing for bankruptcy can be one of the most difficult decisions you have to make in your life. While it can help to wipe out all of your old debt, it can also leave you with a credit record that is less than superior. It causes many people to be leery about getting credit again because they are worried about slipping back into the same type of situation that brought them down in the first place. Rebuilding your credit is crucial. Don't think you need credit? Consider these three areas where credit is a big factor in your life.
Securing a Roof Over Your Head
While not every landlord is going to check your credit, many of them today are. They view your past payment history as a means of determining whether they should rent their home to you or not. By looking at how you handled your past debts, the landlord can make an informed decision about what type of renter you are going to be.
Getting the Job of Your Dreams
Even though you might not realize it, there are a number of different employers who browse at your credit before they decide to offer you a job. While some of the lawmakers are trying to prohibit employers from doing this, it is still in effect for the time being. When filling out a job app, expect the employer to take a look at your credit history.
Finding a Loan in Your Time of Need
One of the biggest reasons by far to rebuild your credit is so you can get a loan later on down the road. Regardless of what type of loan you are looking to get, the lender is going to take a look at your credit history. Loan terms are generally based upon what your credit score is and all of the information contained in your report. If you have a history of making your payments on time, the lender will view you as a lower risk and give you a lower interest rate on your loan. The opposite applies to those who don't pay their loans on time.
By not having any credit whatsoever, the landlord, creditor or employer won't have anything to gauge how you are as an individual and with your finances. Because of this, they often end up denying your application right from the start to prevent any issues down the road. Talk to reputable bankruptcy attorneys in the area.