Can I Get a Credit Card After Bankruptcy?

credit card bankruptcy

A bankruptcy filing may offer you immediate relief from your dire financial situation. However, before pulling the trigger, it is highly recommended that you take enough time to deeply consider it. This is because declaring bankruptcy may have long-term effects on your financial future. For one, it may affect your ability to get approved for loans with favorable rates, or loans in general. Hand in hand, it may affect your ability to open credit card accounts. Follow along to find out whether you can get approved for a credit card post-bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you slowly build up your financial credibility.

Can I pursue credit counseling instead of bankruptcy?

Credit counseling is a session in which a counselor may review your current financial situation and recommend the right debt relief option for you. Such options may include credit card consolidation, debt settlement, or under extreme circumstances, a bankruptcy filing. Unfortunately, you may find yourself in a situation in which bankruptcy is advised. With this, attending this session may not do anything to better your chances of being approved for a credit card post-bankruptcy.

Can I get approved for a credit card after my bankruptcy filing?

After your bankruptcy filing, it may not be unusual for your credit score to drop anywhere from 150 to 240 points. However, this reduction may be dependent on external factors such as the number of credit card accounts you have open, the amount of debt you have with each credit card account, and more.

On the other hand, what is not variable is the amount of time in which your bankruptcy filing will be disclosed in your credit report. More specifically, if you underwent a discharged Chapter 13 bankruptcy, it may remain on your credit report for seven years from the date of your filing. And for a non-discharged Chapter 13 bankruptcy or a Chapter 7 bankruptcy, this may extend to 10 years.

Therefore, having your bankruptcy filing lingering on your credit report may affect your ability to get approved for additional lines of credit. And even if you do get approved for one, it may come with heightened interest rates and fees.

One way to reduce such rates and fees is by consistently paying your credit card balance in full each month. Or, instead, you may consider applying for a secured credit card. With this, you may put down a deposit that serves as your credit card’s limit. Then, regular use of your secured credit card, along with making on-time payments, may slowly build more and more positive credit reports.

In conclusion, you require the services of a talented Rockland County bankruptcy attorney before submitting your bankruptcy petition. So please schedule your free initial consultation with us at The Law Offices of Allen A. Kolber, Esq.