Bankruptcy, for sure no one likes hearing that word especially when it concerns them, nevertheless for some of us it can be at times inevitable. Naturally when someone is filing for bankruptcy all kinds of worries come up as to how this will affect them long-term and credit cards after bankruptcy are just one of these worries.
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.
You see normally credit card debt is considered un-secure, but when the person in debt cannot file bankruptcy the credit card company has the option to use wage attachment to get back the money.
There are numerous dangers is obtaining a credit card after bankruptcy, beyond the usually higher interest rate, as charges for being late with a payment as well as annual fees can quickly put the person into a bad credit risk again.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
For some things quickly get worse and worse
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.
This pushes your liability to $320, causing another $30 to be added as an over the limit fee. The person holding this credit card after bankruptcy now has a debt of $350 and they have not used the card at all.
On top of all this since you have failed at this point in your obligations, your interest rate on your card can very quickly go to the maximum allowed by law.
With the exception of actually paying up there really isn't an easy way out at this stage, especially as many companies will make the demand that they are paid in full within 30 days.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 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.
You see normally credit card debt is considered un-secure, but when the person in debt cannot file bankruptcy the credit card company has the option to use wage attachment to get back the money.
There are numerous dangers is obtaining a credit card after bankruptcy, beyond the usually higher interest rate, as charges for being late with a payment as well as annual fees can quickly put the person into a bad credit risk again.
Credit cards after bankruptcy are very often offered by companies supposedly as an option to help rebuild ones credit rating. People will very often pick these cards up in the hope of getting back on their feet. This is despite the fact that total annual fees can sometimes even equal that of their initial credit limit.
For some things quickly get worse and worse
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.
This pushes your liability to $320, causing another $30 to be added as an over the limit fee. The person holding this credit card after bankruptcy now has a debt of $350 and they have not used the card at all.
On top of all this since you have failed at this point in your obligations, your interest rate on your card can very quickly go to the maximum allowed by law.
With the exception of actually paying up there really isn't an easy way out at this stage, especially as many companies will make the demand that they are paid in full within 30 days.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 31380
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Now go read Can I Get A Mortgage After Bankruptcy or visit this site to read more about the Types Of Bankruptcy
