You may not admit this but at some point, debts get the better of you and the only alternative you are left with is to file for bankruptcy. You look forward to a better financial position but unluckily, your credit card will reflect the negative image of bankruptcy. But with patience and hard work, you can repair your credit.
Check your credit reports
This is one of the most crucial first steps you need to take after completion of your bankruptcy. There are three credit reports you can get- make sure you check all of them from credit reporting bureaus. Ensure that the accounts which your bankruptcy affected are reflected accurately on the reports and that all errors have been eliminated.
Some people have a misconception that the only card you can qualify for after bankruptcy is a secured card, which is not true. You can still get unsecured cards from subprime lenders as a post-bankruptcy applicant. If you are not sure how to do it, inquire from credit repair experts. However, don’t expect much from these cards because they come with high-interest rates and low credit limits.
Start rebuilding credit score after bankruptcy
It is high time you start fixing your credit scores. If you manage to get an unsecured credit card, don’t just stop there because you have a long way to go. Note that the bankruptcy hurt your scores and so it’s hard to get low-interest rates because of your low credit limit. So, use the cards wisely- avoid overspending and pay your debts on time.
Get a secured card
After bankruptcy, you have limited chances of getting credit cards. Since the unsecured cards are not so attractive, you can try becoming an authorised user of another person’s credit card. This, you can get from someone who trusts you and you must demonstrate your commitment to rebuilding credit.
While post-bankruptcy cards may help you fix your credit, it is important that you assess the circumstance that got you bankrupt. Do not rush into acquiring cards before you create an action plan.