You may be hesitant to apply for credit after filing for bankruptcy. After all, credit cards may be the reason you filed for bankruptcy in the first place. However, credit cards are useful tools that ultimately enable you to receive competitive interest rates on future vehicle and home purchases.
While you are going through the bankruptcy process, you cannot apply for additional lines of credit. Once your bankruptcy is completed, you will technically be able to obtain credit again. However, it is generally not a good idea to apply for credit immediately after the completion of your bankruptcy. Taking time to let the bankruptcy settle and improve your financial position could lead to better chances at approval and better interest rates.
Responsible use of credit cards can help you improve your score. Most credit cards are not secured, meaning you don't have to put up any collateral. If you are attempting to build credit after a bankruptcy, you may want to consider a secured credit card. With a secured card, the credit limit you receive is typically equal to the security deposit you put down.
Improving your credit is a marathon, not a sprint. Whether you choose to obtain credit after your bankruptcy depends on one's individual circumstances and financial goals. The most important thing is for you to pay bills on time and improve your budget.
Life may throw all sort sof hurdles at you- loss of job, illness, inflation, etc. Control the factors that you can to improve your financial position.
If you are considering filing bankruptcy, speak to an Experienced Bankruptcy Attorney. The William T. Shaffer Law Group has over 30 years of experience and has helped thousands of people file for bankruptcy. Reach out to our legal team today for a free consultation.
Call (850)398-5187 to speak to an attorney.
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