Bankruptcy can damage a person’s credit. However, rebuilding it over time is still possible. Having good credit is in any consumer’s best financial interest. Even if they have a low score, there are plenty of ways to get back on top. One of the simplest ways to do so is by responsibly using a credit card.
Contrary to popular belief, people can still get credit cards after filing for bankruptcy. But the cards they can get may have different rules and restrictions.
Those with a low credit score can often get what’s called a sub-prime credit card. These cards usually require a security deposit equal to the balance limit.
However, consumers should watch out where they get them. According to a recent report, some issuers can be predatory and hit consumers with unnecessary fees.
In some cases, those who’ve filed for bankruptcy can get unsecured credit cards, but they may come with unfavorable interest rates.
Rebuilding credit takes consistency, commitment and hard work. By doing the following over time, those who have filed for bankruptcy can get back into good financial standing:
Bankruptcy can provide consumers with a fresh start. And while the decision to file is never an easy one, an experienced attorney can help guide their clients through the process.