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.
However regardless to what some may think obtaining a credit card after bankruptcy isn't impossible. There are companies willing to provide this although normally you can expect high interest rates and additional annual fees.
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.
Knowing this, these credit card companies have a legal recourse in collecting on any unpaid debt resulting from the card's use. While most debt charged on a credit card is considered unsecured, if the cardholder cannot file bankruptcy, the company can use wage attachment to gain repayment.
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
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
This pushes your liability to $320, causing another $30 to be added as an over the limit fee. The person holding this credit card after bankruptcy now has a debt of $350 and they have not used the card at all.
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.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
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
However regardless to what some may think obtaining a credit card after bankruptcy isn't impossible. There are companies willing to provide this although normally you can expect high interest rates and additional annual fees.
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.
Knowing this, these credit card companies have a legal recourse in collecting on any unpaid debt resulting from the card's use. While most debt charged on a credit card is considered unsecured, if the cardholder cannot file bankruptcy, the company can use wage attachment to gain repayment.
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
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
This pushes your liability to $320, causing another $30 to be added as an over the limit fee. The person holding this credit card after bankruptcy now has a debt of $350 and they have not used the card at all.
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.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
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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