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.
Credit card after bankruptcy however are indeed available but the catch is that normally you can expect to end up paying fairly high rates for the privilege and even 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.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
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.
It is not uncommon for people to take out these cards in an attempt to better their financial situation, this is despite the fact that it is not unusual for the total annual fees associated with the card to add up to much as the card holders very credit limit.
Troubles Can Keep Adding Up
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.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
You also would have no way out except to pay the balance on the card and some companies will make the demand that the balance be paid in full within 30 days or face collection action.
This can include anything from daily phone calls to court proceedings and wage garnishment. Once this happens, getting out of debt from that one credit card after bankruptcy can take years to clear up.
So as you can see although it is possible, it comes with some possible hefty consequences! The bottom line is, it will depend on your situation and your ability to keep in check on your payments as to whether it would be for you or not. - 31380
Credit card after bankruptcy however are indeed available but the catch is that normally you can expect to end up paying fairly high rates for the privilege and even 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.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
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.
It is not uncommon for people to take out these cards in an attempt to better their financial situation, this is despite the fact that it is not unusual for the total annual fees associated with the card to add up to much as the card holders very credit limit.
Troubles Can Keep Adding Up
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.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
You also would have no way out except to pay the balance on the card and some companies will make the demand that the balance be paid in full within 30 days or face collection action.
This can include anything from daily phone calls to court proceedings and wage garnishment. Once this happens, getting out of debt from that one credit card after bankruptcy can take years to clear up.
So as you can see although it is possible, it comes with some possible hefty consequences! The bottom line is, it will depend on your situation and your ability to keep in check on your payments as to whether it would be for you or not. - 31380
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Also read Mortgage Loans After Bankruptcy or visit our blog to learn some more on all the Types Of Bankruptcy
