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Get a Credit Card After Bankruptcy
Not only can you get a credit card after bankruptcy, it is absolutely essential to repairing your credit. Regardless of whether you file a Chapter 13 or Chapter 7 bankruptcy, once you receive your discharge, you are eligible to get a credit card. Your specific circumstances will determine what kind of interest rates and credit limits you will be offered. Credit card issuers will look at your entire financial picture, however, not just your bankruptcy filing. Do not assume that you do not qualify to get a credit card after bankruptcy. Some people are inundated with offers; others simply have to ask. Take a long-term approach to repairing your credit and get a credit card after bankruptcy.
Why You Should Get a Credit Card After Bankruptcy
Credit cards are essentially short-term loans. One group of credit card companies will be proactive in offering you their cards because it is often during and after bankruptcy that you most need short-term credit. These issuers typically flood bankruptcy filers with offers. Other credit card companies are more cautious, and although they will not offer you a credit card unsolicited, that doesn’t mean that you can’t get a card with them. But you will have to ask.
The more proactive companies will likely charge you higher interest rates. If you are inundated with credit card offers, you should definitely choose one because there is really no better way of repairing your credit after a bankruptcy. But you should carefully look at the interest rates and any additional charges, such as annual charges and late fees, then get the credit card that has the best terms.
Secured vs. Unsecured Cards
While unsecured cards are better for your credit than secured cards, in some cases it may make sense to take out a secured card because you may be compelled to spend less each month. Credit card issuers may also impose limit on your available credit, may ask for a deposit, and may even offer a part of your deposit as the available credit in every bill cycle. The problem with prepaid or secured credit card is that the issuer may not report the financial transactions to the credit bureaus. Before you get a credit card that requires a security deposit, find out if the creditor reports monthly payments to the credit bureaus.
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Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
