Going through bankruptcy can give you the chance to rebuild your finances and your credit. So it makes sense that you would be able to apply for a credit card after the process has been completed. A bankruptcy can stay on your record for seven to 10 years, but that does not prevent you from eventually getting a new credit card. A New City bankruptcy attorney from our firm can tell you more.
When Should I Apply for a Credit Card?
You should wait to apply for a new credit card until after your bankruptcy has been completed. You’re unlikely to find much success if you try to apply for cards during the process. Once you are ready, check your credit report. If there are any discrepancies on there, do everything that you can to clean them up before applying for any cards.
Then you can apply for credit cards that are designed for people with bad credit or no credit, or people like you who are attempting to rebuild their credit. If you cannot get a conventional card, a secured credit card can help you increase your credit score without allowing you to spend too much money that you do not have.
Just keep in mind that these cards are likely to carry higher interest rates and that they are unlikely to come with too many perks or rewards. So it’s in your best interest to only use your card when needed and pay it off in full each month.
Do I Really Need a Credit Card?
You are not required to apply for a credit card after your bankruptcy goes through. It is one of the best ways to rebuild your credit though. If you plan to apply for a car loan or mortgage in the future, you need to begin doing the work to improve your credit score as soon as possible. You do not want to miss out on other opportunities because you never trusted yourself to pay with plastic again.
How Can I Continue to Improve My Credit Score?
Just applying for a bunch of cards and using them as much as possible is probably not the best way to go here. Instead, follow this advice and improve your credit score by:
- Pay your balance in full each month
- Pay on time each month
- Avoiding unnecessary credit inquiries, like applications for too many cards
- Do not max out your cards
- Ask for credit line increases when your score has improved significantly
If you do these things and do not let your spending get out of hand, you’ll be well on your way to a higher credit score.
Learn More About Your Options
If you are considering filing for bankruptcy, contact the Lauterbach Law Firm and schedule a consultation. We can tell you more about your options and how an experienced attorney can help guide you through this process. Then we can help you get on the path to rebuilding your credit.