Can I Pick Up A Credit Card Following Bankruptcy?
As much as we all would want to avoid having to file bankruptcy, sometimes for some people there really is no other option, when this occurs these people often start worrying about things like the obtaining of a good credit card after bankruptcy.
Credit card after bankruptcy however are indeed available but the catch is that normally you can expect to end up paying fairly high rates for the privilege and even additional annual fees.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Knowing this, these credit card companies have a legal recourse in collecting on any unpaid debt resulting from the card's use. While most debt charged on a credit card is considered unsecured, if the cardholder cannot file bankruptcy, the company can use wage attachment to gain repayment.
Although these credit cards are available after bankruptcy they can be a risky option for some. Not only will you be dealing with higher interest rates but you will be charged on late payments and this can quickly add up.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
Things can go from bad to worse
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
You also would have no way out except to pay the balance on the card and some companies will make the demand that the balance be paid in full within 30 days or face collection action.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
As you can see although obtaining a credit card after bankruptcy is possible, the consequences if you are unable to keep up with payments can be very severe, so whether or not you should get a credit card after bankruptcy is going to depend on your situation and your ability to pay on time.
Credit card after bankruptcy however are indeed available but the catch is that normally you can expect to end up paying fairly high rates for the privilege and even additional annual fees.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Knowing this, these credit card companies have a legal recourse in collecting on any unpaid debt resulting from the card's use. While most debt charged on a credit card is considered unsecured, if the cardholder cannot file bankruptcy, the company can use wage attachment to gain repayment.
Although these credit cards are available after bankruptcy they can be a risky option for some. Not only will you be dealing with higher interest rates but you will be charged on late payments and this can quickly add up.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
Things can go from bad to worse
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
You also would have no way out except to pay the balance on the card and some companies will make the demand that the balance be paid in full within 30 days or face collection action.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
As you can see although obtaining a credit card after bankruptcy is possible, the consequences if you are unable to keep up with payments can be very severe, so whether or not you should get a credit card after bankruptcy is going to depend on your situation and your ability to pay on time.
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