There is nothing glamorous about filing for bankruptcy. But, those who emerge are glad to have the chance to rebuild their financial future without any old debt weighing them down. One of the quickest ways to establish credit is with a credit card. And there are several post bankruptcy credit cards that you can apply for after a bankruptcy discharge.
If your bankruptcy was due to poor financial management, there is a very high probability that several credit cards played a role in your financial stress. The average consumer does not understand what they are signing up for when they apply for a credit card. High interest rates and large limits can cause financial distress later on.
Chances are you are not interested in having any more credit cards after a bankruptcy discharge. However, these plastic cards have become a very necessary part of a financial plan for anyone who is looking to establish credit. When you are trying to recover financially, there are several things to consider when choosing post bankruptcy credit cards.
Find a Credit Card That Has a Reasonable Limit
Although you may be tempted to apply for a credit card with a high limit, there is one reason why you should not. It will be difficult for you to get approved for this type of card after bankruptcy. You should only be focusing on reestablishing trust with lenders. A smaller credit limit will allow you to make monthly payments easily.
However, there will be some less than reputable lenders that will try to take advantage of your financial situation. They will approve you for credit cards with very high fees and rates. Stay away from these lenders.
Use Post Bankruptcy Credit Cards to Make Small Purchases
Once you have your credit card, do not make large purchases. Instead, make small purchases, and always pay your credit card bill on time. If you fail to make your payments on time, your late payments will adversely affect your credit score. And you could find yourself in financial trouble again. However, when you make payments on time, your credit score will improve.
Post bankruptcy credit cards can help you reestablish credit after a bankruptcy discharge. When used wisely, they can help you regain control of your finances.
To learn more about applying for credit cards after filing for bankruptcy, contact us today.