After you file for Chapter 7 bankruptcy relief or after you file for Chapter 13 bankruptcy relief, you will get offers for credit in the future states Lake Barrington bankruptcy lawyer. You have to be patient however because offers that come into early are not going to be in your best interest. For example, you can likely get a credit card within six months of filing a Chapter 7 bankruptcy however that credit card may contain a high interest rate, a high annual fee and an application fee. If you can be patient after a Chapter 7 bankruptcy filing, you are more likely to see better offers down the road as time passes and it gets further out from when you originally filed for the bankruptcy.
You can always get a secured credit card after you file bankruptcy which is a great way to start with credit after a bankruptcy filing. A secured credit card is a card where you place money into a bank account, whether it is $250 or $500 or some denomination and that banking institution gives you a credit card with that amount of charging privileges. The benefit of a secured credit card is that the finance company or the credit card issuer will start reporting to the credit bureaus that credit information. It is a way to build up your credit score. It is a way to have the convenience of plastic and it is a way to have the convenience of credit. Now, only you know when you are tendering that credit card to a merchant that it is in fact a secured credit card and you are just really charging off what you have on account. However, as far as the credit bureaus are concerned, it is a good form of credit and you will see your credit score increase.
I caution my clients not to seek credit cards too soon after they file Chapter 7 bankruptcy. I would like to see my clients stay on a cash basis for the next six months to a year. By staying on a cash basis, my former clients actually see and feel what it costs to conduct business. Too often now people are just whipping out some sort of plastic, whether it is a debit card or a credit card and charging everything from gas to gum to groceries to clothing to anything that they can possibly pay for with a credit card or a debit card, that is what they are doing. Studies have shown that people spend more money when they are spending it with plastic as opposed to when they are actually paying by cash. I want my former clients to understand the importance of budgeting and I want my clients to understand the importance of making wise spending decisions. You will not get this type of information if you decide to hire cheap bankruptcy lawyers.