Getting Back on the Credit Horse Once You’ve Filed Bankruptcy
Many individuals feel like giving up on credit cards altogether after going through something as trying as a bankruptcy. That can be a viable option for some but in most cases the optimum way to reestablish your credit after you’ve filed bankruptcy is to obtain a credit card.
Obviously, your options are going to be limited in the credit card world after you’ve filed bankruptcy. Legally admitting to not being able to pay off your debts is not the ideal character trait a credit card provider is ready and willing to back. However, you do have options when it comes to obtaining a credit card in your post-bankruptcy life.
The Secured Credit Card
Simply put, a secured credit card is one that’s credit limit is determined by the amount you have in a connected savings account. Think of it as a credit card with training wheels. It will help you make sure that you have enough funds to pay off your balance every month.
So what should you look for in a secured credit card? Filing bankruptcy does make you an exception to many perks offered to general credit card holders but that doesn’t mean you don’t have any rights. You will want to make sure that you’re not being taken advantage of and getting blasted with a high application fee and/or annual fee.
Also, what is your secured credit card for if it is not actually reporting your good behavior to the relevant credit bureaus? Double check with your card issuer and be absolutely sure that your card payments are being reported to Experian, Equifax, and TransUnion. If you make your payments on time for a year to a year and a half then you should be eligible for the non-secured credit card offered to responsible credit card applicants.
More Information on Obtaining a Post-Bankruptcy Credit Card
The secured credit card isn’t your only option when it comes to finding a new credit line after you’ve filed bankruptcy. If you have a solid track record with your bank or credit union then you may want to inquire about obtaining a credit card through them. Also, if you have a generous friend or relative who would be willing to co-sign on your credit card then that may also be helpful because it could open doors to more attractive credit cards. However, if you neglect to pay it off then the balance will go to your co-signer who will undoubtedly seek you out for retribution.
Credit is a tricky thing that some people get right and others foul up. If you’ve filed bankruptcy then you’ve no doubt fouled up but bankruptcy is your second chance. Start your search today for your post-bankruptcy credit card so you can be on your way to a financially responsible life.
