Obtaining A Credit Card After Bankruptcy
Even when you have realized that bankruptcy is your best option in lieu of your financial situation, you may sometimes find it difficult to see the positive side of the situation while the process is ongoing. Despite the fact that Florida is one of the states with the highest number of annual bankruptcies, it can still be hard to feel like you are not alone in what can feel like a never-ending financial journey.
But by the time you reach the other side of the bankruptcy process, you will find that your situation has likely vastly improved. In fact, you will likely find yourself facing more financial offers and opportunities than you may have ever before. And while you may have thought you’d never have another chance at having a credit card post-bankruptcy, you may pleasantly find that credit card options are available to you. However, obtaining one may initially be a bit trickier than it was before you filed. Fortunately, there are tips that can help you be successful.
Find a Secured Card
While there are cards that are actually marketed as being for post-bankruptcy, there is a trade off to the fact that these are specifically designed for people whose credit and credit card debt history is less than ideal. That trade off unfortunately means that the unsecured versions of these cards come with substantially higher interest rates and greater risk. Secured credit cards can be one of the best ways to restore your credit score because those cards only allow you to borrow money from an initial deposit you make onto the card. Timely payments made on your secured card can be communicated to the credit bureau and used to improve your score.
Ask a Reliable Cosigner for Help
Some people are fortunate enough to have a family member or friend who will help them out by cosigning for a credit card. If this is a viable option for you, then you should consider accepting this assistance which can make a huge difference when it comes to obtaining lower interest rates and fees.
Consider Whether You Should Wait
Importantly, just because you begin receiving a slew of offers in the mail does not mean that you have to take advantage of any of them right after bankruptcy. It may be best to hold off on getting a credit card if you know that you are not realistically in the financial position to take on the additional responsibility of a credit card or other type of revolving credit. The last thing you want to do is overcommit yourself financially and end up in the same situation you just got out of.
Planning Ahead With Legal Help is the Wisest Choice
The process of attempting to journey toward financial stability can be a challenging one for anyone who has been struggling with escalating debt. Long before you are thinking about obtaining new credit cards, you may be wondering about how you could escape debt by filing for bankruptcy. You should obtain legal help if you have questions about the ways that filing for bankruptcy could benefit and impact you. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, we will do everything within our power to ensure that your best solutions are within your reach both now and in the future. Set up your free consultation with us today to go over the circumstances of your Florida bankruptcy.