When you filed for bankruptcy, you probably lost your credit cards. However, now that your debt has been, or is about to be, discharged, you may wonder what your options are. Some people are eager to start over with a new card, while others are hesitant, worrying about getting in over their heads again. If you are thinking about getting a new credit card post-bankruptcy or wondering if it is even possible, here are a few things you should know.
1. A New Credit Card Can Be Helpful
Having just recently escaped crushing debt, you may feel wary of getting a new credit card. However, it could be helpful if you are careful about how you use it. Once your debts have been discharged through bankruptcy, you need to start rebuilding your credit. A credit card can help you if you purchase only small amounts and then pay off the balance on time every month. However, if you do not think you can resist the urge to overspend, you may not be ready for a new credit card yet.
2. Some Cards May Not Be Available
Your bankruptcy is on your credit report and will be for another seven to 10 years. When you apply for a new card, the issuer will do a credit check and see the bankruptcy on your record. Knowing that you’ve messed up in the past, some issuers may not be willing to take a chance on extending you a credit line.
On the other hand, there are some companies that provide cards specifically to people in a situation like yours, e.g., looking to rebuild credit after filing for bankruptcy. You may not get the exact card you want, and you may have to pay higher interest rates or deal with other limitations, but it should be possible to get a credit card after your bankruptcy.
3. You May Need To Wait
Eventually, you should be able to obtain a credit card following your bankruptcy. However, it may not happen right away. Even if you qualify, it may be a good idea to wait a while. For example, you are restricted from filing for bankruptcy again until a number of years have elapsed. Therefore, the debt relief it offers may not be available if you get into trouble again.
If you need help with legal issues related to bankruptcy, contact a law office. An attorney, like a bankruptcy lawyer from Kamper & Estrada, PLLC, would be happy to listen to and answer your questions.