Credit Cards after Bankruptcy

Getting credit cards after bankruptcy is not as difficult as some people may think. Bankruptcy has and will always carry a certain stigma in some ways, but in many cases it is necessary. When you find yourself with unexpected catastrophic medical bills, for instance, it is often necessary to file bankruptcy so you don't end up losing everything. Even if you end up doing that, getting a credit card after bankruptcy is possible, and often a good idea. Credit cards after bankruptcy can help you to slowly build your credit back up, as long as you practice self discipline.

You need to know the rules when it comes to credit cards after bankruptcy. First of all, you can't go out the day after a judge approves your bankruptcy and get a credit card. You have to wait a certain amount of time before you can apply for any type of loan, and a credit card is considered a loan. How long you have to wait might depend on what the laws are at any given time, so it's a good idea to ask a lawyer. Once your time limit is up, however, you can start considering credit cards after bankruptcy.

You won't be able to get any prime credit cards after bankruptcy; you will be considered too much of a risk. You may be able to get a sub-prime card, however, but you will most likely have to pay a yearly fee and high interest rates. You need to consider this card a way to start rebuilding your credit. Pay off the balance every single month and you won't have to worry about the interest at all. When you pay the balance off on time every month, you don't pay any interest charges, unless you take a cash advance. You should never take a cash advance if you can help it; they are too costly.

If you do get any credit cards after bankruptcy and you pay the balance each month, you should contact the issuer of the credit card each year to see if you can get the yearly fee waived, the interest rates lowered, and the limit increased. You may be turned down at first, but if you keep calling about every six months, they will run you through the system and see what happens. If you have been diligent about paying on time, eventually you will get better rates and a higher limit. Don't use this to get in trouble again, however! Be wise with your credit cards and your money.

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Title:	Credit Cards after Bankruptcy
Author:	Joy Stoyle
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Credit Cards after Bankruptcy