When you exit bankruptcy, life is supposed to return to “normal” minus the stress of insurmountable debts. And for most people in the 21st century, “normal” life entails living with credit. But would credit card issuers do business with a discharged bankrupt? You might be surprised but the answer is “Yes”. In fact there are many credit card companies that specialize in granting credit to people who have exited bankruptcy and are starting anew financially.
But as you might guess, the interest rates charged to you would be higher than that for other customers because the credit card issuer assumes you pose a higher risk to them. This justifies their high interest rates, which can sometimes be rather exorbitant. Should you resign yourself to paying sky high interest rates for credit just because you have been declared a bankrupt before? Fortunately, the answer is “No”.
So if you have been offered a credit card(s) but are being charged higher than usual interest rates, you need to know how to address this matter.
The first thing you can do is look around for cheaper rates. One place you can look at is Credit.com where you can get all sorts of advice on credit card usage, compare credit card companies and find credit cards for people with bad credit scores. Although you probably would not qualify for all the cards listed there, you could find one that suits your circumstances. If so, you could apply for a card and either transfer your existing balance to your new card and enjoy lower rates or cancel your existing card and just use your new one.
If you are not interested in obtaining another card, your other option is to negotiate with your existing card issuer. Most credit card issuers would be open to discussing with you on terms that could lower your interest rate.
If your credit card company is not willing to lower your interest rates, ask to convert your existing card to a secured credit card. A secured card is a card where your credit is backed up by a cash deposit as collateral. This type of credit card carries lower interest rates than unsecured cards but they are treated the same way as unsecured ones on your credit score.
If you are considering filing for bankruptcy to overcome your debts, call us at (813) 200 4133 for a free consultation.
Related Blogs
Filed under Chapter 7 (Tampa) by on Mar 15th, 2012. Comment. 
I am sure you would have come across what I am about to write but I think it bears repeating. This has to do with credit card debt. Credit cards have become so much a part of our lives that we often take things for granted when it comes to credit card debt. When credit card debts are not handled correctly, it could stand in the way of your financial release through bankruptcy.
The problem with credit card debts is that it is often unfelt. Spending on credit can give you short-term instant gratification, lulling you towards complacency and wrong thinking. The wrong thinking is that you can merely pay the minimum required amount each month and you will have credit available indefinitely. How wrong! That is precisely what the credit card companies want you to think and do because they make more money out of you.
Sooner or later, the amount of your debt will snowball out of control and you are forced to file for bankruptcy by which time your debt would be so huge, it would take you forever to repay it even under bankruptcy. Wouldn’t it be better to file for bankruptcy with a smaller amount of debt so that your bankruptcy can be as painless as possible? Of course it would.
So before you end up biting off more than you can chew, here are three things you ought to beware of so that you keep your credit card outstanding balance in check.
1. Ignore the reward system
Most credit cards have a reward system that rewards you with gifts or points for using your card more. The best thing you can do for yourself would be to ignore these programs and just use your credit card for buying things that you really need and can afford.
2. Be wary of introductory offers
Most credit card companies entice you to sign up for their cards in the first place with a special lower introductory rate. But after the introductory period is over, the interest rate increases dramatically. So if you do not need another card, just don’t get one no matter how tempting the introductory offers are.
3. Keep your credit card accounts open
For whichever credit cards you already have, do not close any of them. This may seem contradictory to keeping your debts low, but the rationale behind this is to improve your credit score. Your credit score is mainly based on your credit to debt ratio. If you have lots of unused credit and little debt, you have a better credit score than little credit and lots of debt. So as long as you maintain your credit card accounts and do not overspend, it will do your credit score lots of good in the long run.
If you wish to apply for bankruptcy, call us at (813) 200 4133 for a free consultation on your financial problems.
Related Blogs
Filed under Chapter 7 (Tampa) by on Jan 4th, 2012. Comment.
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Related Blogs
- Home loan interest rates gets benefit | raestate
- Mortgage Rates in Canada | raestate
- Free Personalized Hallmark Card For Mother's Day » My Money Blog
- Penfed Visa Platinum Cashback Rewards Card – 5% Cash Back on Gas …
- Chase Sapphire Preferred Card: Easy $250 Signup Bonus! » My Money Blog
- Should You Manage Your Own Mortgage Escrow? » My Money Blog
- Free FICO Score For Joining MyFico Forums » My Money Blog
- Free Experian PLUS Credit Score From American Express » My Money Blog
- Free Credit Score Report Card and Analysis » My Money Blog
- Pruco Life Insurance Company(INVESTMENT COMPANY)
- Car Loan Rates | financebis
- 2010 Housing Market Predictions. Where Will Mortgage Rates Go …
- Improving your credit score | financebis
- China scores a double A, says Beijing's credit rating agency …
- Small Business Loan Uk: an Invention at Home in | Opening A Small …
- Must-Have Free Website Template for Business Company | Template …
- The NAACP and the Race Card (with Bonus Idea for South Park …
- How Will The Fed Affect Mortgage Rates This Year?
- If Ireland cuts are such a great example for Britain, why has …
- Got Company Stock Options? Here's How They Work
Filed under Chapter 7 (Tampa) by on Jul 15th, 2010. Comment.
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Filed under Chapter 7 (Tampa) by on Jul 1st, 2010. 1 Comment.
Is it possible to rebuild a good credit standing after bankruptcy? The answer is an emphatic yes! Filing for bankruptcy does not mean you will never be granted credit or given a loan again. It all boils down to doing the right things to rebuild your credit after a bankruptcy.
Rebuilding your credit means having to re-establish your standing before the credit bureaus. To do so, you have to show yourself to be prompt and faithful in paying your dues. There is practically no way for an individual by himself to deal with credit bureaus and because of that, you need to go through an intermediary like a credit card company. Credit card companies submit regular reports on their clients to the credit bureaus.
So the first step would be to apply for a credit card. Since you have been a discharged bankrupt, some banks might impose certain restrictions and conditions in issuing you a credit card. For example, you may be granted a secured credit card i.e. one that is backed up by some collateral put up by you. Another example may be a bank issuing you a prepaid credit card which is a credit card where you are given credit only upon paying the bank. Some banks might even issue you a credit card that is only valid in certain countries and not worldwide.
Once you have been issued with your credit card, you should seek out a regular payment schedule where you can pay using your credit card. Then all you need to do would be to use your credit card to pay the regular payments each month. As long as you regularly pay each month’s payments on time with your credit card, your credit score will eventually rise as the credit company reports your payments to the credit bureaus.
Another means of increasing your credit score is to obtain a mortgage. This may be difficult due to your bankruptcy but there are some mortgage products you may qualify for. It may be one with a higher interest rate or you may need to take up an interest-only loan in order to get a mortgage. You cannot afford to be picky. Just choose a mortgage arrangement that is within your means to repay and start repaying on schedule. This will also improve your credit rating over time.
If possible, try to get a good mix of credit arrangements without biting off more than you can chew. For example, if you can secure a store account, a car loan and housing loan, it goes to show to the credit bureaus that you can manage different types of credit well. Such a credit mix will augur well for you in increasing your credit score.
Filed under Chapter 7 (Tampa) by on Jun 3rd, 2010. Comment.
