When you are looking to get credit after a bankruptcy filing, you are going to find that you are not going to have the lowest interest rates and incentives that many others have available to them. Instead, you will need to be prepared to go a more expensive route to start improving you credit and to get the credit lines you need after bankruptcy.
One of the first choices you are going to have when you have completed the bankruptcy filing and are ready to get a line of credit is to get a secured credit card through your bank. With this process, you are going to open up a secured account that holds the funds that will act as your credit line. While it is open, you are not going to be able to access these funds at all. If you continue to pay your accounts on time and avoid going over your limit, your bank can refund your funds and increase your credit line over time. This will just depend on their banking practices.
If you are unable to come up with the funds for the secured credit card after bankruptcy, then you may want to look at some of the higher rate credit cards. The problem with these cards is that you are going to be presented interest that is going to be higher than other credit cards on the market. Along with this, you are going to find that there are annual fees and application fees you will need to pay that will often be deducted from the available balance that you are going to have available to you.
After your bankruptcy filing, you are going to find that the more time that passes, the better off you are going to be down the road when you do need to get a loan. Since the bankruptcy is going to give you the chance to be free from debts, you will want to consider living without credit for a few years and then slowly begin to re-establish your credit. This is going to allow you to manage your money effectively and within a few years the rates you are going to end up paying will be significantly less than if you obtain a high interest credit card only a few months after filing.
Just keep in mind that you do have options when it comes to dealing with credit after bankruptcy. You will want to be sure that you take your time to explore all the options that you have and do what you can to focus on improving your credit situation slowly over time. A bankruptcy filing doesn't mean that you have done anything wrong, it just means that your finances got to the point you couldn't handle them anymore. Because of that, take the knowledge that you have about this process and ensure that the credit you end up obtaining will work for you in the current means that you have.
The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
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