As much as we all would want to avoid having to file bankruptcy, sometimes for some people there really is no other option, when this occurs these people often start worrying about things like the obtaining of a good credit card after bankruptcy.
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
However as you will see it is one thing to obtain a credit card after bankruptcy but it is another to be able to use it safely. The danger is that with higher interest rates and extra fees on late payments you can quickly end up back in a bad credit situation.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
For some things quickly get worse and worse
To put things into perspective let us say for example that your credit card after bankruptcy annual fees are $290 and your initial credit limit was $300, if you were only one day late for a payment you can expect on average to end up paying $30 as a late fee.
In turn this would push-up the liability to $320 which would cause another $30 fee for being over the limit, this means that the credit card holder would now have a debt of $350!
To make matters even worse the interest rate on this card could quickly add up on the maximum that is allowed by law since the obligations on the credit card after bankruptcy were not met.
With the exception of actually paying up there really isn't an easy way out at this stage, especially as many companies will make the demand that they are paid in full within 30 days.
Daily phone calls, court proceedings, you name it, from here on in things can really get ugly and fixing the mess often takes several years.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 31384
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
However as you will see it is one thing to obtain a credit card after bankruptcy but it is another to be able to use it safely. The danger is that with higher interest rates and extra fees on late payments you can quickly end up back in a bad credit situation.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
For some things quickly get worse and worse
To put things into perspective let us say for example that your credit card after bankruptcy annual fees are $290 and your initial credit limit was $300, if you were only one day late for a payment you can expect on average to end up paying $30 as a late fee.
In turn this would push-up the liability to $320 which would cause another $30 fee for being over the limit, this means that the credit card holder would now have a debt of $350!
To make matters even worse the interest rate on this card could quickly add up on the maximum that is allowed by law since the obligations on the credit card after bankruptcy were not met.
With the exception of actually paying up there really isn't an easy way out at this stage, especially as many companies will make the demand that they are paid in full within 30 days.
Daily phone calls, court proceedings, you name it, from here on in things can really get ugly and fixing the mess often takes several years.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 31384
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