If you had to get credit card debts discharged in bankruptcy, then you might feel like you will never be able to have one again. That isn’t the truth. In fact, you may be able to get credit cards soon after your bankruptcy is finalized.
Bankruptcy affects your credit score by reducing it significantly. Your credit score will likely drop by hundreds of points. Since getting credit relies on having a good credit score, the reality is that it is difficult to get a new credit card with a good interest rate after bankruptcy.
How will a Chapter 7 bankruptcy affect your ability to get a new credit card in the future?
When you go through a Chapter 7 bankruptcy, all of your eligible assets will be liquidated. The profits will be used to pay back at least a portion of what you owe. Any remaining unsecured debts included in the bankruptcy are then discharged.
After this, you will have poor credit. The bankruptcy will stay on your credit report for up to 10 years, which means that any kind of loan or credit you try to get may be affected by the bankruptcy.
When will you get new credit card offers?
Post-bankruptcy credit card offers may be mailed to you, but you should be careful if you see them. They will have the highest interest rates, and there may be significant fees and penalties if you miss a payment.If you do decide to take out one of these credit cards, try to find a company that doesn’t have any extra or unnecessary fees. Try to avoid cards with an annual fee as well.
When you use a new credit card, do your best to pay off everything you spend in full at the end of the month. Regardless of the interest rate, doing this will help you avoid paying anything extra.
In the end, you may still be able to get new credit cards after a bankruptcy, but you’ll be seen as a high-risk borrower. Be cautious about any credit cards you take out, so you can prevent unnecessary debt from affecting you in the future.