Usually a person files for bankruptcy when she or he has no other means of having to pay the mounting debts. Many times debtors attempt to repay their debts through consolidation, but cannot handle the sheer quantity of the debt. This leads to the debtors defaulting about the repayments and this can adversely affect their credit score. So, the last resort for the actual debtors is bankruptcy. However, this doesn't mean that all financial problems arrived at an end. There are many outcomes of filing for bankruptcy. For example, the person's credit score will fall by a massive 350 points which makes them a credit risk. Which means that person will find it very difficult to obtain a credit card after filing bankruptcy. Before 2005, whenever a person applied for credit, his application was invariably denied because credit unions believed that bankruptcy was because of bad financial management and the person was an excessive amount of a credit risk to give him or her a card. The c
redit unions was previously worried that the person would refile bankruptcy to obtain out the debt trap once once again. However, in 2005, after the personal bankruptcy laws were changed, it has become more difficult for individuals to refile bankruptcy as there's a waiting period before the next bankruptcy could be filed. This prompted credit unions to turn out to be less strict on issuing credit card to those who have credit problems. Getting a credit card after bankruptcy is among the best was of rebuilding your credit rating. Once the court declares you broke, you can apply for a secured credit after six months of the declaration. In this kind of card, you would have to pay the credit union some deposit to extend a line of credit for you. However, you would still have to create all the payments on time. No doubt that secured charge cards have higher interest rates and annual fees when compared with unsecured credit cards, but you should be buying card that does not charg
e a person application fees. This way you would not have to cover account opening, maintaining the account and other connected expenses which can add to a great deal and your credit line will reduce without you having made any buys. Always pay off the monthly balance in full and don't leave anything for the next 30 days. Make sure that your credit card issuer reports to the credit bureau that you're making all the payments on period. Also, make sure that the company doesn't put a notification on the card being secured when reporting towards the credit bureaus. After 12 to 1 . 5 years of making timely payments on your charge card, request the company to change the card to credit card. However, this is something that would depend on the company's policies and isn't a certainty.
About Author: Pauline Go is definitely an online leading expert in the financial industry. She also offers top high quality articles like: Report Mortgage Fraud, Credit Greeting card Fraud
View this post on my blog: http://creditcard.valuegov.com/after-bankruptcy-credit-cards/
redit unions was previously worried that the person would refile bankruptcy to obtain out the debt trap once once again. However, in 2005, after the personal bankruptcy laws were changed, it has become more difficult for individuals to refile bankruptcy as there's a waiting period before the next bankruptcy could be filed. This prompted credit unions to turn out to be less strict on issuing credit card to those who have credit problems. Getting a credit card after bankruptcy is among the best was of rebuilding your credit rating. Once the court declares you broke, you can apply for a secured credit after six months of the declaration. In this kind of card, you would have to pay the credit union some deposit to extend a line of credit for you. However, you would still have to create all the payments on time. No doubt that secured charge cards have higher interest rates and annual fees when compared with unsecured credit cards, but you should be buying card that does not charg
e a person application fees. This way you would not have to cover account opening, maintaining the account and other connected expenses which can add to a great deal and your credit line will reduce without you having made any buys. Always pay off the monthly balance in full and don't leave anything for the next 30 days. Make sure that your credit card issuer reports to the credit bureau that you're making all the payments on period. Also, make sure that the company doesn't put a notification on the card being secured when reporting towards the credit bureaus. After 12 to 1 . 5 years of making timely payments on your charge card, request the company to change the card to credit card. However, this is something that would depend on the company's policies and isn't a certainty.
About Author: Pauline Go is definitely an online leading expert in the financial industry. She also offers top high quality articles like: Report Mortgage Fraud, Credit Greeting card Fraud
View this post on my blog: http://creditcard.valuegov.com/after-bankruptcy-credit-cards/
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