Credit cards are a leisure item that are all about convenience especially when you simply don’t have the cash on hand to make a purchase immediately. The availability of this convenience can be called into question when you have faced previous financial challenges such as personal bankruptcy. A common question or concern for those that have weathered financial woes is whether a credit card is still an option.
Can you get a credit card after bankruptcy?
Once your bankruptcy period has ended you will have the ability to gain approval for a credit card once again. The type and terms offered, however, may be altered.
Due to your recent indebtedness banks will be understandably cautious when it comes to offering loans of any sort. They will, therefore, be inclined to offer a secured loan which means you’ll be required to make a substantial deposit before your request is accepted. Demonstrating responsibility by making consistent payments on time is key. You will begin to earn trust.
Whatever the value of your deposit it will also be the limit of your spending capabilities. As you earn trust and improve your score, you will most likely be given less stringent terms in the future.
You may be able, based on the chapter you filed under attaining a loan under regular conditions. This may be the case if you filed under chapter 7 instead of 13 as the mark left on your record with a chapter 7 filing, for instance, leaves less of a mark and disappears from your record sooner than a filing done under 13. In both cases, your and interest rates tend to be higher than they would normally be for someone without this blemish on their record.
Will my score be affected after my ruling has been dispersed?
There will be some alteration, but this greatly depends on where you were at before the blemish on your record. If you had a great score it may see a slight dip which may be reflected by two to three hundred decreases. Persons that had a much lower initial score can see a drastic dip in their credit score such as four or five hundred points.
How can I improve my score?
By being responsible for purchases you can regain your credibility in the financial arena and earn the trust of those in the industry. This can be done by making full payments for purchases and using cash wherever possible.
Regaining control in a situation like this is never easy but if you are patient and make a valiant effort to handle purchases responsibly, avoiding any new debt, you can regain your credibility and all the perks that come with it.
If your debt is mounting and your credit score is dropping, personal bankruptcy may be an option for you. The Bankruptcy Attorneys at Hines Law Offices can help. We specialize in Chapter 7 and Chapter 13 Filings as well as aid our clients with supportive and compassionate advice when it is required most. In addition to our vast experience in legal matters, we have a high degree of success in helping our clients obtain lasting debt relief in a timely and effective manner.
Our Full-Service Legal Firm handles all types of personal debt relief matters and we have several locations throughout Massachusetts. Call us today for a Free Consult!