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So you’ve made the decision to go ahead and declare bankruptcy, but all is not lost for you. In the future, you may find yourself even happy with your choice. But now you are left wondering: how am I ever going to get a credit card again?
The director of the market research firm Synovate, Anuj Shahani, even said that 200 million credit card offers that went out to the public back between the years of 2005 and 2007, for people with what would be considered “bad” credit.
Not All Hope Is Lost
Throughout the past few years, credit card issuers have become far less lenient to those with bad credit and even those who have declared bankruptcy. That being said, there’s no reason to give up on ever having a credit card again. It will just take time.
First of all, the primary fact to understand after you’ve filed for bankruptcy is that you may not file again for another seven years. In that time, you can rebuild your credit profile to a healthy place, where you will qualify for more normal credit cards.
Start Looking Again
Next, be sure to examine the credit card offers that will start heading your way, as the credit card offers to those with bad credit tend to be drastically different than an average credit card offer. The fees can be considerably higher than compared with those of their counterparts.
Which makes sense, as it is a bigger risk for the credit card issue to distribute cards to those with poor credit. As Synovate reported and as reflected in an article from the site NASDAQ, 42% of these tend to come coupled with an annual fee.
The much-contested CARD Act of 2009 does protect consumers from being lured in an unsavory set-up, if the card issuer deems them desperate enough (a common conception among issuers targeting those with bad credit). It helps out the consumer by limiting things such as penalty fees as well as upfront fees.
So once you find a card offer you feel comfortable with, go ahead and sign up. Start spending carefully though, or as much as your finances can allow you for that time
From that point, you are given a new beginning of sorts. Your slate has been wiped clean by your bankruptcy. Simply remember to practice smart credit card spending. Build up your credit back to a normal and acceptable level.
Take Your Time
“It will be hard,” said Arnold Taubman, an economist affiliated with Credit-Land. “And it will take a lot of time, but much of the challenge can be averted by practicing what I would call are common sense credit card habits.”
That being said: make your payments on time. Try to make more than the minimum when you can. Recognize whatever unhealthy spending habits you might have and work to reprimand them.
One option you might want to consider, should you not feel comfortable with going with traditional unsecured credit cards, is the secured credit card itself. By using that frugally, you will work yourself into the place where you will look attractive to unsecured credit cards once again.