Getting credit after bankruptcy may be an important part of rebuilding credit ratings, but it should be approached cautiously. With patience and a bit of research, it’s worth the wait and effort to start your new financial life on the right track.
Those in need of bankruptcy help during the filing process can consult with a Plano bankruptcy lawyer who can also discuss the impact that filing for bankruptcy can have on an individual’s finances, credit score, and ability to get credit after bankruptcy. While a bankruptcy will stay on a credit report for seven (for Chapter 13) or ten years (for Chapter 7), it may still be possible to get a credit card shortly after going through the process.
Should I get new credit cards after bankruptcy?
Some bankruptcy filers are surprised to learn that they can still get a credit card after filing for bankruptcy. Many choose secured credit cards to get credit after bankruptcy, which require a refundable security deposit that acts as the credit limit for the card. For instance, if you deposit $500, your limit will be $500 and you will make payments on the charges you make to the card. Make sure that the card company reports your status to the three major credit bureaus to rebuild your credit.
Your goal may be to get credit after bankruptcy with a limited number of banks and retail stores (or gas cards), and to use this credit wisely. After a time, you can ask the credit card company or bank when it might be possible to upgrade to an unsecured card, but doing so should change your spending habits.
Avoiding Pitfalls after Bankruptcy
Avoid bankruptcy scams after filing. Be watchful of companies that claim to give you high-limit or unsecured cards right after bankruptcy, or that make any other “too good to be true” bankruptcy help offers or financial promises. Always do your research and be wary of quick fixes.
As a Plano bankruptcy lawyer who is providing bankruptcy advice will likely tell you, getting credit after bankruptcy and rebuilding credit ratings can take time. Don’t expect to improve your credit score overnight – putting in the effort to make fundamental changes to spending, borrowing and budgeting habits can help restore credit ratings and build a lasting lifestyle.
As you work on improving your credit score, start building a savings and budgeting weekly and monthly expenses. You may not be able to put a large amount of money away at first, but every little bit could help in the event of an unplanned financial emergency that may otherwise require taking out a loan or using a credit card to pay for the expenses. Set aside money for all of your bills and essentials every week or month and budget what you can for savings.
In addition to avoiding scams and spending wisely, being a smart credit user also means keeping track of your credit information. You’re entitled to a free credit report from the three major reporting agencies once a year. It’s wise to take advantage of this right to verify that the information on your credit report is accurate. If you notice an error, report it.
Bankruptcy Help from a Plano Bankruptcy Lawyer
Getting credit after bankruptcy and rebuilding your credit rating is largely dependent on your ability to budget, spend and handle your credit wisely. But if you need bankruptcy help when filing, a Plano bankruptcy lawyer can provide legal assistance. Petitioners may even ask the attorney about what to expect after bankruptcy, such as getting credit after bankruptcy and rebuilding a credit score.