Bankruptcy can be a dirty word. It leaves a permanent black mark against your credit and your name. However, there are ways to rebuild your damaged credit. Strange as it sounds, credit cards can help after bankruptcy.
Use the credit card chaser to find credit cards that could help return your credit to good standing!
Can I still apply for credit cards after filing bankruptcy?
Yes. But that does not mean that life will go back to normal. When you filed for bankruptcy, you made a legal and binding statement that you were unable to meet your financial obligations and repay your debt, regardless of what that debt may be.
If you have filed for bankruptcy, you know it is a life-altering event that can rear its ugly head and besmirch your credit and your name years after filing it. It can be a nightmare and often is.
Be aware that after declaring bankruptcy, you will not have the same type of credit offers as you did before. Credit issuers will tend to give you a very wide berth because they are concerned that if you could not pay your debt before, you may not be able to pay it now.
Online legal guru, the NOLO Network offers a checklist of things to do after you have filed bankruptcy on TheBankruptcySite.org to help you get back to perhaps a new type of normal with your finances. With their advice, you may be able to avoid falling back into old patterns.
What types of credit cards can I apply for after filing for bankruptcy?
Credit card companies may be willing to extend a small amount of credit to you, but do not expect too much. Unless you have the will power to the decision to go credit-free, the following credit cards could lead you in the right direction of credit after bankruptcy. However, consumers beware. Credit card companies have one objective: to make money off their clients. They do this by tacking on all sorts of fees to their cards. If you have bad credit or poor credit, these fees can be staggering. Be sure you know exactly what they are before accepting the card. Several types of cards are available that you can use to rebuild your credit. Two of these are:
- Subprime credit cards are usually offered to people who have declared bankruptcy. These usually include those that are of a very high interest rate and most likely, the issuing company will require steep annual fees for the use of the cards. Be ready for a very limited line of credit as well.
- Secured credit cards are another solution. This requires you to open a savings account with that company. The amount of money in that savings account is the amount of credit available on your credit card. It might not be the optimal solution for you, but in time, it will help to rebuild your credit.
There is a rainbow at the end of the bankruptcy nightmare regarding high interest credit cards. Interest is applied only when you carry a balance from month-to-month. If you do happen to be approved for one, you can avoid those monthly interest fees by paying off the entire balance every month.
How will my credit get better after bankruptcy if I start using credit cards again?
When you filed for bankruptcy, you admitted that you mismanaged your money. While you may have shown that you lacked responsibility in the past, you can reclaim your good name and raise your credit score by obtaining a card that was mentioned above by making your payments on time or better yet, pay the balance off early.
If you can show the credit card issuers that you are financially responsible by obtaining a credit card, even if you had to jump through a few hoops to get one. Then you can request a re-evaluation of your credit, which could result in a higher credit limit, lower interest rates, or better yet, both.
Can credit card companies help remove my bankruptcy claim from my credit report?
No! Any credit card issuer who claims to have this ability is part of a scam. They offer to repair your credit and clean up your name when you pay an exorbitant processing fee for their services. Once they receive your payment, they are never heard from again.
No one has the ability to remove a negative financial event from your credit report. If a company asks you for any type of fee to provide this miracle service, hang up. You must be aware of your credit score and any activity associated with it. You can check your credit score once a year free.
If you are trying to rebuild your credit, use the credit card chaser to find compare credit cards that can help put you back on track!
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