Tuesday, November 25, 2008

Re-Establishing Credit After a Bankruptcy

Q: What does "re-establishing credit" after a bankruptcy mean?

A: After a bankruptcy, a lender will be looking at a borrower's credit report to make sure they have either kept some accounts open or opened new ones. If the borrower has three open lines of credit (credit cards, car loans, mortgages, etc.), and they do not have any late payments for the 12 months preceding the loan application, then they have "re-established" their credit.

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