Posts tagged: chapter_seven

How Soon After Chapter 7 Bankruptcy Can You Get a Credit Card?

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Chapter seven bankruptcy is the most common form of bankruptcy that is used in the world today. It is the type of bankruptcy that liquidates your business or assets to allow them to be used to pay the people that you owe money to that you cannot pay back yourself. This liquidation happens all too often in our atmosphere of misused credit today.

There are several small steps you can take to get back on your feet after bankruptcy. However, most of these methods take time, because it is impossible to be instantly qualified for credit and back on track right after you have claimed that you cannot pay off your debt. Having credit card companies, banks, and other lenders trust you with credit again is going to take some time.

Build Your Credit Score

The best thing you can do to qualify yourself for good credit, better interest rates, and descent credit limits again is to build your credit score. Unfortunately, the only way you can really do this is to use some form of credit, like credit cards. So at first it may be difficult to pay those high interest rates and have such low credit limits, but you must face the consequences of filing for chapter seven bankruptcy and pay the price until you are back on your feet. Once you have again established a good credit rating, you will have lower interest rates and higher limits because you have rebuilt your trust and lowered your risk of another bankruptcy.

Manage Your Credit Wisely

The fact that you had to file for chapter seven bankruptcy alone should be a lifelong lesson that will get you to be more careful about your spending habits and your payment abilities. Now that you are trying to move on, you should create a budget for yourself so that you know just how much you can spend on credit, how easily you will be able to make the monthly payments on that amount, and how many things you could go without so that you can gain a better credit score.

Getting Another Credit Card

Getting a credit card after you have filed for bankruptcy will not be difficult. You will still receive offers and qualify for several different kinds of cards. In fact, if it is used more wisely than it was prior to your bankruptcy, a credit card may be the very thing that gets you out of your slump.

Having a credit card and using it sparingly after bankruptcy will help to build your credit score and get you back to where you were. The way in which you could do this is by getting a card, only spending a small amount of money on it, and paying it off each month. Keeping your credit card account open and paying it off frequently will build your credit score more rapidly than it would if you just let your credit card debt stay at a plateau or continually increase.