Law Office of Rick Morin, PC

I recently wrote articles on how to get a Mortgage and Car Loan after bankruptcy. This article will discuss your credit card options after bankruptcy.

Credit Cards Aren’t Bad At All

It is foolish to say that debt is bad, or that credit cards are bad. Used responsibly, credit cards can make managing your finances a breeze. Credit cards help spread payments on large purchases out over time. As long as the interest is reasonable, there is nothing wrong with financing a large purchase.

Paying off a credit card in full each month usually doesn’t incur any interest charges at all. I personally like having all of my purchases in one place. Another added benefit is fraud protection. Credit card companies are very easy to deal with if a card is lost or stolen. I certainly wouldn’t want my debit card account hacked into, and this is the reason why I almost never use a debit card. –

What To Look  For When Applying For a Credit Card

A recent bankruptcy filer should avoid high interest and excessive fees to the maximum extent possible. These are the cards that get people into a lot of trouble. Recent bankruptcy filers are usually flooded with credit card offers in the mail. Read the fine print carefully. You really want to know what you are getting into prior to applying.

I recommend starting with a secured credit card. A secured card will be easier to obtain right after bankrutpcy. And the account should have better terms than unsecured cards.

Not sure where to get a secured credit card? I recommend that you contact your bank. Since you already have a relationship with your bank, they should be willing to help you reestablish your credit.

Don’t Wait to Reestablish Your Credit

I strongly recommend that you start the process to reestablish your credit as soon as you are out of bankruptcy. No law prohibits a recent bankruptcy filer from quickly establishing credit after a bankruptcy case is over. Do not delay!