One of the most widespread fears about filing for bankruptcy is the misguided notion that a person will never be able to get a credit ever again and that their credit score will be permanently ruined. This is completely false! If you should ever file for bankruptcy, you can start to rebuild your credit and obtain a credit card almost immediately. While your access to certain cards will be limited, you are by no means barred from ever being issued another line of credit. As far as your credit score is concerned, your bankruptcy will no longer be visible on your credit score after a period of seven to ten years.
In fact, getting a credit card after bankruptcy may be easier than you thought, as some credit card companies may even send you credit card offers due to the reduction in debt-to-income ratio that results from Chapter 7 bankruptcy. Additionally, creditors know that Chapter 7 bankruptcy cannot be sought a second time within eight years, thereby making you appear to be a less-risky debtor.
With that being said, you must be extremely careful when using credit cards after filing for bankruptcy. Excessive use of credit cards is common way that people find themselves in a financial mess in the first place, especially since some cards can carry staggering interest rates near 28 percent. With proper use, however, credit cards can help you rebuild your credit and improve your options for future home loans and auto financing.
If you are looking to use a credit card after bankruptcy, it is imperative that you:
- Spend carefully
- Pay off your balance in full every month
- Make your payments on time
Struggling Financially? Contact the Law Offices of David Brodman
Bankruptcy can be a frightening experience, especially if you try to handle it on your own. If you are struggling with debt or are looking to repair your credit after bankruptcy, a Bronx bankruptcy attorney from the Law Offices of David Brodman can use their 15+ years of experience to guide you towards a financially sound future. With more than 5,000 cases handled, you can rest easy knowing that your rights are sure to be protected.
Take control of your future – call (718) 354-8027 to request a free consultation today!