Credit Card After Bankruptcy
Reestablishing and rebuilding credit after bankruptcy is simply a matter of persistence. It's not hard, but does require a workable plan and the gumption to follow through. The hardest part is saving 5% of your next payday, and doing so each month thereafter to save $200. Then, with a savings account, you are ready to begin in earnest and jump-start your new credit history.
Filing Chapter 7 or 13 is a once in a lifetime event for most debtors. Probably, these debtors gained a new appreciation for the necessity of credit and better money management techniques. In the beginning, use credit only to profit, then let it multiply. Pay each credit card after bankruptcy when you receive the statement. A few credit card companies are notorious because they hold payments one week or 10 days, hoping to create late fees and blame slow mail delivery. Instead, pay your debts early and build solid credit. See also:
A word of caution about your first credit card after bankruptcy
Many companies try to charge excessive interest rates and fees to debtors who recently received a discharge. These companies promote a grand myth that they are offering you something special, providing a favor, or taking an unjustified risk. They're not. They are trying to take advantage of someone in need. Statistically, debtors who recently filed are far less likely to file again, or default on payments, than other debtors who routinely receive credit cards. Today, state courts are becoming more willing to prosecute companies who actively engage in predatory lending practices, while federal courts seem to actively prevent state court prosecutions. This situation is temporary, and more a reflection of radical, one sided politics than equal justice.
Do not expect a platinum card the day after discharge. Certainly, credit cards are available the day after discharge, but many of these cards offer such poor terms and high rates they are harmful. Instead, take your time, shop comparatively, and find one card with acceptable terms. To immediately gain card privileges, consider a checking account with an ATM card approved by one of the major card companies. They are universally accepted the same as credit cards.
Most debtors eventually realize that credit and credit cards after bankruptcy are much the same as before. You will receive unsolicited mail extending generous promises that seem to always fall short. Credit availability before and after filing are similar, but not the same, because of one very large added benefit. The cause of poor credit before filing should be eliminated, and a new credit history with unlimited potential is yours to develop any way you choose.
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