Many people believe that filing for personal bankruptcy will make it impossible for them to start a business and become financially independent after their debts have been discharged. Often, bankruptcy debtors will discover that the exact opposite is true. With some discipline and good advice, entrepreneurs can find that starting a business and securing financing is much easier after a bankruptcy than it would have been if they had tried to resolve their debts without filing for personal bankruptcy. Three such entrepreneurial success stories have been outlined in a recently published online editorial post, and they are great examples of the ways for entrepreneurs to start and run a successful business after discharging debts through bankruptcy, while also rebuilding their credit.
After a bankruptcy, it can be difficult for someone to be approved for a credit card, but responsible credit card use is one of the best ways to build credit, so what can be done? A secured credit card can be a helpful way for someone to rebuild their credit after a bankruptcy.
With a secured credit card, it is much easier to gain approval, although it requires a collateral deposit that functions to cover the credit line for the card. Since the card user makes charges and pays the bills on time, they may be able to deposit more in the account to add more credit, and sometimes a bank will increase the credit line without requesting additional deposits. Using a secured credit card can allow someone to gain more and more credit over time, and it can eventually help an entrepreneur to be offered unsecured credit for a business loan to help with business expenses. Users of secured credit cards must be diligent about keeping their balances under the credit limit and paying their bills on time, or else using the card will not help them rebuild their credit.