Rules to Applying for Credit Cards After Bankruptcy

You’ve just finished filing for bankruptcy. This is your chance for a fresh new start. Of course, with bankruptcy, you also have to deal with some of the downsides. When it comes to the amount of debt that you can get out from under, bankruptcy tends to have more benefits than disadvantages. This is especially true for those that cannot seem to escape debt. However, you will suffer a hit to your credit score. This can seriously damage your ability to receive a credit card right away.

Will you be able to apply for a new credit card again?

Do Not Apply Right Away

Your first rule should be that you do not apply for a credit card as soon as you file. You do not want to try to add any credit cards while you are trying to negotiate or discharge your debt. During this time, you do not want any other credit cards. Of course, once you have filed and have finalized the process, then you may be able to apply for credit cards again. You need to keep in mind, however, that you may have a high interest rate or face rejections.

Do Not Fall Into Old Habits

Remember why you filed for bankruptcy to begin with. If you had high credit card debt, then you do not want to end up in that position again. If you choose to apply for a credit card, then keep in mind that you never want to use it for something that you don’t have the money for. You want to be able to keep up on every single payment. You may even want to think about applying for a secured credit card.

Secured credit cards require a deposit. This deposit will also be your credit line. This is a lot more helpful and a lot easier for you to obtain after bankruptcy. It can help you to rebuild your credit so that you have better options when it comes to credit cards and loans.

After bankruptcy, you can still apply for credit cards. Now, early on, your credit score may be too low to obtain a credit card with a fair interest rate. It is better to wait until your credit score begins to improve before you start to rebuild your credit. Of course, when you file for bankruptcy, your credit score doesn’t take a hit forever. It can improve. For more information about bankruptcy, consider a consultation with a credit card defense lawyer.