How To Get A Credit Card One Month Out Of Bankruptcy
When a person files for bankruptcy a note will be placed on his credit report where it will remain for the next ten years. So does this mean that you are unable to obtain any credit until this period has expired? Not at all. In fact, you are likely to receive offers of new credit cards shortly after your discharge. But you would be well advised not to jump on the first offer you are sent since there will most likely be better terms available if you take your time.
To understand why this is so it is necessary to look at the way that people who have been discharged from bankruptcy are regarded by the credit industry. The first thing to realize is that the credit card industry is a very competitive market where card companies are fighting for new business. People with bad credit records including discharged bankrupts form a significant sector of the market, so products have been developed that are suitable for people in this group.
Although a bankruptcy remains on your credit report for ten years, its effect on your ability to obtain credit starts to diminish straightaway. In some ways a discharged bankrupt can be a better credit risk than he was before the bankruptcy because he will have less liability for outstanding debts. This assumes that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
While you will be able to obtain a new credit card after discharge from bankruptcy, it will be more expensive with a higher interest rate and extra fees. Expect to pay a setup fee as well as annual charge. A secured credit card is your most likely option where you pay a deposit which equals your credit limit. In the event of default the company will use your deposit to repay the loan. But provided you use the card in a responsible way and make the payments on time, you should be offered a transfer to an unsecured card after twelve months or so.
As you see, obtaining a new credit card after bankruptcy will not be difficult, and will be an essential step on the way to rebuilding your credit score. But if easy credit on too many cards was the cause of your bankruptcy, pause to reflect before you go down that route again.
To understand why this is so it is necessary to look at the way that people who have been discharged from bankruptcy are regarded by the credit industry. The first thing to realize is that the credit card industry is a very competitive market where card companies are fighting for new business. People with bad credit records including discharged bankrupts form a significant sector of the market, so products have been developed that are suitable for people in this group.
Although a bankruptcy remains on your credit report for ten years, its effect on your ability to obtain credit starts to diminish straightaway. In some ways a discharged bankrupt can be a better credit risk than he was before the bankruptcy because he will have less liability for outstanding debts. This assumes that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
While you will be able to obtain a new credit card after discharge from bankruptcy, it will be more expensive with a higher interest rate and extra fees. Expect to pay a setup fee as well as annual charge. A secured credit card is your most likely option where you pay a deposit which equals your credit limit. In the event of default the company will use your deposit to repay the loan. But provided you use the card in a responsible way and make the payments on time, you should be offered a transfer to an unsecured card after twelve months or so.
As you see, obtaining a new credit card after bankruptcy will not be difficult, and will be an essential step on the way to rebuilding your credit score. But if easy credit on too many cards was the cause of your bankruptcy, pause to reflect before you go down that route again.
When a person files for bankruptcy a note will be placed on his credit report where it will remain for the next ten years. So does this mean that you are unable to obtain any credit until this period has expired? Not at all. In fact, you are likely to receive offers of new credit cards shortly after your discharge. But you would be well advised not to jump on the first offer you are sent since there will most likely be better terms available if you take your time.
To understand why this is so it is necessary to look at the way that people who have been discharged from bankruptcy are regarded by the credit industry. The first thing to realize is that the credit card industry is a very competitive market where card companies are fighting for new business. People with bad credit records including discharged bankrupts form a significant sector of the market, so products have been developed that are suitable for people in this group.
Although a bankruptcy remains on your credit report for ten years, its effect on your ability to obtain credit starts to diminish straightaway. In some ways a discharged bankrupt can be a better credit risk than he was before the bankruptcy because he will have less liability for outstanding debts. This assumes that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
While you will be able to obtain a new credit card after discharge from bankruptcy, it will be more expensive with a higher interest rate and extra fees. Expect to pay a setup fee as well as annual charge. A secured credit card is your most likely option where you pay a deposit which equals your credit limit. In the event of default the company will use your deposit to repay the loan. But provided you use the card in a responsible way and make the payments on time, you should be offered a transfer to an unsecured card after twelve months or so.
As you see, obtaining a new credit card after bankruptcy will not be difficult, and will be an essential step on the way to rebuilding your credit score. But if easy credit on too many cards was the cause of your bankruptcy, pause to reflect before you go down that route again.
To understand why this is so it is necessary to look at the way that people who have been discharged from bankruptcy are regarded by the credit industry. The first thing to realize is that the credit card industry is a very competitive market where card companies are fighting for new business. People with bad credit records including discharged bankrupts form a significant sector of the market, so products have been developed that are suitable for people in this group.
Although a bankruptcy remains on your credit report for ten years, its effect on your ability to obtain credit starts to diminish straightaway. In some ways a discharged bankrupt can be a better credit risk than he was before the bankruptcy because he will have less liability for outstanding debts. This assumes that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
While you will be able to obtain a new credit card after discharge from bankruptcy, it will be more expensive with a higher interest rate and extra fees. Expect to pay a setup fee as well as annual charge. A secured credit card is your most likely option where you pay a deposit which equals your credit limit. In the event of default the company will use your deposit to repay the loan. But provided you use the card in a responsible way and make the payments on time, you should be offered a transfer to an unsecured card after twelve months or so.
As you see, obtaining a new credit card after bankruptcy will not be difficult, and will be an essential step on the way to rebuilding your credit score. But if easy credit on too many cards was the cause of your bankruptcy, pause to reflect before you go down that route again.
posted by zzzzzzzzzzz at
2:41 AM
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