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.
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
As you may or may not know once someone has filed for bankruptcy they cannot do so again until seven years have passed. This is in fact one of the reasons why companies are even willing to provide credit cards in this situation.
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.
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.
Things can go from bad to 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.
In turn this would push-up the liability to $320 which would cause another $30 fee for being over the limit, this means that the credit card holder would now have a debt of $350!
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.
There really is no way out either, with the exception of paying the balance on the credit card. Quite a lot of companies demand that the payment be made within 30 days and if that does not happen you would 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.
As you can see although obtaining a credit card after bankruptcy is possible, the consequences if you are unable to keep up with payments can be very severe, so whether or not you should get a credit card after bankruptcy is going to depend on your situation and your ability to pay on time. - 31380
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
As you may or may not know once someone has filed for bankruptcy they cannot do so again until seven years have passed. This is in fact one of the reasons why companies are even willing to provide credit cards in this situation.
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.
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.
Things can go from bad to 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.
In turn this would push-up the liability to $320 which would cause another $30 fee for being over the limit, this means that the credit card holder would now have a debt of $350!
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.
There really is no way out either, with the exception of paying the balance on the credit card. Quite a lot of companies demand that the payment be made within 30 days and if that does not happen you would 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.
As you can see although obtaining a credit card after bankruptcy is possible, the consequences if you are unable to keep up with payments can be very severe, so whether or not you should get a credit card after bankruptcy is going to depend on your situation and your ability to pay on time. - 31380
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Now go see Mortgage Loan After Bankruptcy or visit this site to read more about all the Different Types Of Bankruptcy
