After you’ve been discharged from your bankruptcy, whether it be Chapter 7 or 13, you have the freedom to make your own financial choices and purchases. This includes getting a credit card.
Though some companies may deny you a credit card based on a low credit score, there are other credit card companies that will accept customers with low to zero credit. Some credit cards are even designed to help you rebuild your credit, and we’ll talk about that in a second.
Based on our client feedback however, we find that resisting the many credit card offers you may receive is the difficult part as most are unfavorable to you.
Getting a credit card after a bankruptcy has certain obvious advantages in terms of rebuilding your credit, but you don’t want to abuse your credit card. Instead, remember how you got into the position for filing bankruptcy in the first place.
If you decide to get a credit card after your bankruptcy, you need to do so wisely.
Choose the right credit card
Just because you get many different credit card offers in the mail doesn’t mean they’re all good offers to pounce on. Different credit cards have different interest rates and fees associated with opening an account and using the card. You need to do research on the front-end before accepting a credit card offer. Select the credit card that best-matches your need and lifestyle.
Use the credit card wisely
There are many different types of credit card users. Some only use their credit cards for emergencies, some only use their credit cards for segmented purchases like gas or groceries and some users swipe their credit cards for everyday purchases. No matter which user you are or want to be, be smart when you use it. Don’t spend money you don’t have.
When choosing and using a credit card, do so in a way that helps you avoid falling into debt again. You’ve felt the stress and frustration of being controlled by debt and you’ve taken the right first step in getting yourself out of the hole. Now, take the next step and re-establish and rebuild your credit the right way.
At Darrell Castle & Associates, we can help you with this by offering you a 14-week program called “7 Steps to a 720” that will teach you:
- how to rebuild your credit the right way
- why most credit scores are wrong
- which credit cards actually hurt your credit score
- how to stop lenders that report the wrong information
- how to re-establish your credit after a bankruptcy, foreclosure or short sale
If you have any questions or if you’re considering filing for bankruptcy, give us a call today at (901) 327-2100 or contact us online. One of our experienced bankruptccy lawyers Memphis, TN places its trust in will be happy to speak with you about your situation, free of charge.