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Getting a Credit Card after Bankruptcy
By Jack Scranton
If you've claimed bankruptcy or have been thinking of claiming bankruptcy, you may want to know how hard (or easy) it is to get a credit card after bankruptcy.
Bankruptcy is never a first option when it comes to dealing with your financial situation, but it is also not a final mark in your financial record. Even after you have filed for bankruptcy, it is certainly possible to redeem your credit score and even successfully get a new credit card. Furthermore, if you have a credit card with a zero balance, you may not have to surrender that card at the time of your filing. If you are interested in exploring your options when it comes to using credit cards after you have filed for bankruptcy, consider the following options.
Option One: Keeping Your Existing Credit Card
In many instances, you can retain your existing credit card even after you have filed for bankruptcy. The only way this situation is possible is only if you have a zero balance on the card at the time of your filing. If you have any debt currently owed to the credit card company, that amount much be listed in the bankruptcy proceedings. Do not think that you will be able to deny any debt that is currently owed to a credit card company, as that is consider perjury and a federal offense. However, if there is no debt on the card, then legally you can retain use of the credit card. Furthermore, you do not have to notify the specific credit card company of your bankruptcy filing. Keep in mind that some credit card companies may find out about your filing through a second-hand source and cancel your credit card on a precautionary measure.
This is not often the case, assuming you are in good standing with the credit card company. As an additional precaution, some companies may require you to sign a new agreement after the completion of your bankruptcy proceedings. Remember, you are a customer of a credit card company and many companies wish to hold on to their good customers, regardless of their unrelated financial situations.
Option Two: Getting a New Credit Card
Believe it or not, it is not that difficult to get a new credit card after you have filed for bankruptcy. There are several credit card companies out there that will gladly sign up recently bankrupted individuals for shiny new credit cards. However, the price of this plastic is much greater than usual. Be prepared to pay enormous rates for credit cards with incredibly low spending limits.
Regardless of the specific type of credit card you choose to use after you have filed for bankruptcy, you should use the card with caution. If you found that credit card debt was the main reason for your initial financial situation, consider consulting a financial advisor. Also, there are many credit card scam agencies out there promising you great rates and quick credit repairs. Before signing with any company, it is essential that you do the proper research in order to make sure that the offer is legitimate and will help your situation.
The Reason for Credit Cards
The main reason for establishing credit cards after you have filed for bankruptcy is to begin building back your credit. Many individuals erroneously believe that filing bankruptcy is an automatic closed door on your credit report. However, it is possible for your credit score to rebound assuming you take the correct steps to recover from bankruptcy. In fact, it is even possible for individuals who have a bankruptcy in their financial past to receive home, automobile, and personal loans from reputable financial organizations.
Remember to use your credit cards judiciously and pay the correct amount on time each and every time. This way, your credit score will continue to repair itself and you will be able to start anew.
About the Author
Jack Scranton is a regular contributor to http://www.creditcardscompare.com - a website that shows consumers how to find credit cards, what is important about a FICO score, how to get a free credit report and more.
Article Source: http://www.simplysearch4it.com/article/33590.html
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