After filing for a Chapter 7 or Chapter 13 bankruptcy, many people are surprised to find that they will still receive credit card offers from their banks or through the mail. Although this is a good sign that you may be able to repair your credit, it is vital that bankruptcy consumers know how to find the best deals on credit products before signing up for a new card. In the months immediately after filing for bankruptcy, a person must act with extreme caution when it comes to his or her available credit card options. Finding the right credit card for your situation will allow you to restart your life on a strong financial footing after bankruptcy.
Avoiding Unfair Credit Cards
A common way to rebuild your credit after bankruptcy is using a “secured” credit card. Secured cards operate much like regular credit cards, except these cards require you to deposit money at the issuing bank or credit union. After a year of paying your bills on time and in full, you may be entitled to receive this deposit back, and use the card solely on your established credit.
In other circumstances, you may find yourself eligible for a standard-issue credit card. This can be a relief to hear after filing for bankruptcy. However, it is important that you take the time to research the card’s terms of use to ensure that you receive the most benefit from it.
The initial offer from a credit card company may seem tempting, such as a low or non-existent interest rate, no annual fee or a generous amount of reward points. However, these terms are often only available for a limited amount of time after opening the account. Six months or a year after you sign the credit card contract, you may have to begin paying an annual fee of $75 in addition to interest rates of up to 20 percent. Nobody deserves such unfair terms of use, especially individuals who are rebuilding their finances.
Your bank or credit union may have the best options for a credit card after filing for bankruptcy. Many financial institutions offer financial planning services to their customers, and they may be able to help you find the most beneficial credit product for your situation.
Legal Counsel Is Essential to Learn About Your Bankruptcy Options
The right credit card can help you strengthen or rebuild your credit after a bankruptcy. Contact the Kevin D. Judd law firm today if you have questions or concerns about finding the best credit card offers. Our Maryland and Washington DC bankruptcy attorney has years of experience with the credit industry and can offer legal aid to those who may find themselves in financial trouble. If you are suffering from overwhelming debt, take the first steps towards relief and financial stability by seeking legal assistance.
