After filing personal bankruptcy in Colorado, clients are concerned about their options for obtaining a decent credit card. As I have said on my Colorado Bankruptcy Help FAQ page: In today’s competitive lending environment, credit is available to the recently bankrupt. It may be more expensive than before, and available with lower limits, but it will be offered. It does take some effort, but it is possible to find a card that will offer you reasonable credit and will help you reestablish your credit rating.
It might seem like getting a good credit card after filing personal bankruptcy is unlikely. But some companies assume that after having had serious financial problems, you will do what is necessary to avoid having similar problems in the future. In other words, they assume you will have learned from your mistakes. That being the case, some of the better credit card companies are interested in clients who have declared bankruptcy. Particularly since there is at least a two year delay before you are eligible to file bankruptcy again. (The length of time allowable between bankruptcies depends on which Chapter you file. For more information on this issue go to my Colorado Bankruptcy Help FAQ page under the question “Does a previous bankruptcy prevent me from filing?”)
Be aware, as soon as your credit rating drops, notoriously bad credit card companies will start sending you applications. These cards have extremely high interest rates and poor policies, such as massive late fees. Don’t be fooled into applying for one of those credit cards. Even after bankruptcy, you can do better than those disreputable companies.
A secured credit card is usually available post bankruptcy at lower rates than unsecured cards. Maintaining a thirty percent balance on a secured credit card may be the best approach to improving your credit score. It will increase your options for obtaining decent unsecured credit cards in the future.
Remember that establishing great credit after bankruptcy will require a commitment on your part to use your credit wisely and to pay your bills on time. Refer to a site like Credit Card Whiz for suggestions on how to manage your credit. Exercise caution when using credit so you don’t end up in financial difficulty once again.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado and have questions you would like a Colorado personal bankruptcy attorney to answer please contact me.
Kevin D. Heupel, Colorado bankruptcy lawyer
Phone: 303-955-7570
website: http://COBankruptcyHelp.com
email: help@cobankruptcyhelp.com
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