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.
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Filed under Chapter 7 (Tampa) by on Mar 15th, 2012. Comment. 
After having your debts discharged through bankruptcy, it is time to start anew financially. After all, that is the purpose of filing a bankruptcy petition. Bankruptcy wipes your slate clean and allows you to become debt free again. But now that you have been given a new lease of life financially, it is time to start off on a right footing and not repeat your past mistakes.
You should know that a bankruptcy filing will stay on your credit record for between 7 to 10 years. This is unavoidable but it is remediable. In other words, you may have this “blemish” wiped off your record in less than the customary 7 years. If you are interested in improving your credit score after bankruptcy, read on.
The first thing to do to remedy your credit score is to check to see if all your debts have been recorded as discharged by the credit agencies. Sometimes, errors can occur and some of your debts that have been discharged may not be recorded as such and this would jeopardize your credit score. In such an event, write to the credit agencies formally and inform them of the oversight. Make sure they correct the error and show that your debts have been discharged by your bankruptcy.
One of the most effective ways to improve your credit record is to start a new record of good and prompt payments of your credit each month. So contrary to what you might think, your credit card actually becomes your ally not your enemy after bankruptcy. By all means use your credit card, BUT make sure you pay up more than just the minimum payments on time every month.
If you are not eligible for a normal credit card, you can apply for a “secured” credit card, which is one that is issued against some collateral as a deposit. This collateral will then become your balance limit.
Another way to avoid past financial mistakes is to have regular savings. Setting aside some money each month is a good way to save for a rainy day. You never know, this saving may help you avoid another bankruptcy in future should any unexpected emergencies occur such as high medical bills.
If you keep control of your debts by making regular payments on all of them and also set aside some savings regularly, you are well on your way to a life of financial prudence.
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Filed under Chapter 7 (Tampa) by on Feb 29th, 2012. Comment.
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Filed under Chapter 7 (Tampa) by on Dec 28th, 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.
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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.
