Credit after Bankruptcy: Myth or Reality?

By ccflyers on August 29, 2008

The celebrated case of a couple who had filed bankruptcy twice before they again got up to their neck in debt suggests an interesting idea. Bankruptcy is not the end of financial career; on the contrary, it gives the green to credit companies who seek to make revenues at the bankrupt’s need for financing.

At this point you’re expected to come into play and set up your own rules to control and benefit from the credit usage. Be sure, a card company has enough of available credit to finance you during the post-bankruptcy period, and it will. But as each creditor is after its own profit in the first place, be ready to face a number of traps all the same.  Want to avoid the mere possibility of being cheated? Follow the tips we’ve suggested considering you filed for bankruptcy a time a go and are in search of a credit line to get back on track.

Do not rush for the first plastic card that might be offered to you in the mail or catch your eye on a special web site. Nobody knows your paying capabilities and responsibility better than you, so take your time to analyze banks’ offers available and your actual readiness to accept any of them.

Credit after bankruptcy is more than real with a secured card. With not just best terms and conditions on the deal, a secured plastic is still a tool of borrowing money which might come in handy when needed. But its greatest advantage is the in-built credit repair tools providing for a quick, easy and, most importantly, safe way of recovering after the bankruptcy damage.

You might be easily temped by the purchase power and flexibility of an unsecured plastic offered to you as an acceptable-risk customer. But ask yourself if you’re ready to risk your poor yet credit by agreeing on higher interest rates and generally smaller limit of an unsecured account.

Such are First PREMIER® Bank cards issued for customers with problem credit, including those with bankruptcy records. Theymay be able to help build, rebuild, or re-establish your credit if you make on time payments with all of your creditors and maintain your account balances below the credit limits.

Without the need to open a security saving account and make cash collateral, these products are harder to qualify for and riskier to manage. If you are in the market for one of them, make sure you follow the strict rules of responsible payment behavior; otherwise you can get into a standard trap of a bank – default APRs, penalty fees and other charges than can make the deal extremely expensive for you but profitable for the issuer.

Credit after bankruptcy is a real thing but how this reality treats you is a matter of your responsibility and determination to restore your credit reputation and financial health.
Lots of people buried under a heap of past due bills are afraid of declaring bankrupts due to new bankruptcy laws and, as they think, inaccessibility to credit in the future. That’s the wrong way of thinking. The only effective method to rebuild or reestablish payment history is realized through a new account on a bad unsecured or secured card.
If bankruptcy is the only way out, let it be. You’ll always b able to erase its bad effect through the responsible use of an appropriate credit offer.

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