Many times when people feel that their credit is ruined, they give up all hope of ever trying to apply for anything again. What these people may not know is there are still programs available to help them achieve the things they want without having to worry about credit issues.
Each creditor will set their own standards for deciding whether or not you are eligible to be approved, and their views on your credit history will vary. There are some that will only look at your record from recent years, and some will be more lenient with giving you credit if it appears that your payment history has steadily improved. A good way to determine whether or not you will qualify with a company is to call the creditor directly and discuss their regulations with them. The worst that could happen is that you could be denied, and even though this may be an incredible blow to your ego, you will not be any worse off than before you made the phone call.
Many creditors are open to working out a repayment schedule. However, you should only consider this option if you are unable to work out a schedule for yourself but you feel like you can work under the deadlines of a creditor's budget. There will be no good result if you waste someone's time making them find the best option for you, and then fall behind on your payments again. There are also credit organizations as well as non profit companies that are dedicated to helping people get on schedule with their payments, but try to research these companies before enlisting their help because they are not always trustworthy. You should also make sure that you learn about all of their fees upfront whether they are higher than average or hidden fees. Also, just because a company is non-profit, it doesn't mean that you have to make a contribution. If you were in a position to give money away, you would not be requesting their help. If you are going to get help from a management company, make sure that you find one that will conduct their services in person as opposed to the Internet.
Too often people feel the only way out of a bad credit situation is through bankruptcy. Filing for bankruptcy is not the easy way out at all. When you file for bankruptcy it will take you at least seven years to recover and your goals of buying a house or a car will be even further out of reach. In October of 2006 a new amendment was added to the bankruptcy laws stating that everyone filing for bankruptcy must seek credit counseling within six months of filing. If you think about it, it might be worth your while to seek the counseling and learn how to better manage your credit rather than file for bankruptcy and postpone the inevitable.
Although you think your future credit looks bleak, you have to remember that there are steps you can take to fix your credit and get it back on the right track. Whatever you do, don't give up. Rather than hide your head in the sand or look for the easy way out, make an attempt to fix your credit, whether it's through counseling or other means. If you do that, then somewhere along the line someone will be willing to take a chance on you again.