One of the common myths circulating about bankruptcies is that after you have filed for bankruptcy, it will not be possible to use the services of credit card companies again. But keep in mind that there are thousands of credit card users out there, that filed for bankruptcy. Yet they are getting new offers. You can very well find new offers even after filing for bankruptcy. The bankruptcy filing can be an opportunity for rebuilding the creditworthiness. There is no need to avoid credit cards entirely after bankruptcy but, it might be a good idea to stay away from the bad habits.
Effects of chapter 7 bankruptcy filing on the credit score
In almost all cases, you will find that a chapter 7 bankruptcy filing will lower your credit score. However, this happens only temporarily. Although the bankruptcy filing details will stay visible on the credit report for almost 8-10 years, the credit report will also display your good deeds. Many people that filed the chapter 7 bankruptcy found out that their credit score began to improve after a couple of years of the filing.
Staying out of trouble with the credit card companies after a chapter 7 bankruptcy
You need to use your credit cards cautiously after you have filed for bankruptcy. This will allow you to rebuild the credit score a lot faster. When you are rebuilding your credit to qualify for a credit card that has higher credit limits, it takes patience and time. These are some error-proof methods that may be used for getting credit cards in the initial years after the filing.
- You can open a secure credit card account. This account starts as a debit card in the sense that you can prepay for the limit you get and it is normally $200. However, if you can keep up with the payments, you will be able to convert this card into a conventional unsecured credit card. This can happen usually after a year or so.
- In case you are receiving offers for getting a credit card just after filing bankruptcy, you must not open more than one. Convince yourself that the permitted credit limit is a lot lower than what it is. This allows you to maintain your credit card balance at the requisite levels. Never open another credit card until you have paid off the first one.
- Get a friend or a family member to co-sign for the credit card in case they are inclined. This will provide access to a credit limit that you would have never had immediately after a bankruptcy filing. When you are accountable to someone close to you, it also prevents you from falling back into bad spending habits.
There are certain quick fixes available for getting out of debt. But bankruptcy lawyers can help you in discharging these debts to address some of the underlying financial issues. If you live in Tampa, FL area, contact Weller Legal Group for consultations now. You can discuss your case with their experienced lawyers.
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