Credit Card After Bankruptcy Discharge

Apr 3rd, 2014 | By | Category: Debt

Filing for bankruptcy is a major blow to anyones credit; however, it’s possible to rebuild your credit standing within a reasonable number of time. The amount of time it takes to rebuild your credit varies from person to person; but, for most who file, bankruptcy is actually the first step on the way to rebuilding your credit standing, instead of the last.

When deciding to file bankruptcy, it is important to realize that Bankruptcy can remain on your credit report for up to 10 years. However, when you think that a collection case, foreclosure, or repossession will also remain on your credit report during the same period of time; bankruptcy may be the best choice since the bankruptcy eliminates your obligation to the underlying debt. This is an important factor when you think that in repossession, you’ll be held responsible for the remaining outstanding balance. Moreover, although a bankruptcy may stay on your credit report for 10 years, it will only take several years after a bankruptcy discharge to rebuild your credit.

You simply can’t ignore the logic.

Bankruptcy eliminates your past credit history. Therefore, you must create a new credit history to rebuild your credit score. You will establish a new credit history by using the card and making payments. Your use of credit is brought to the credit bureaus and will help accomplish this goal.

Do not use your credit card if you don’t get the money to repay it. A credit card is a means; not a crutch.

Do not use your credit card if you don’t get the money to repay it. A credit card is a means; not a crutch.

Continuing In This Direction..

Use your credit card only for emergencies or large necessities and dont use it again until the balance is paid.

You are entitled to 2 free copies of your credit report from every one of the credit reporting agencies per year, as a Massachusetts resident. Therefore, you should monitor your credit report every six months. If you find an error on your credit report, or find that a creditor that was discharged in bankruptcy is still reporting, you should report the error with the credit reporting company. If you still have problems fixing the error, you should contact your bankruptcy lawyer who’ll probably be in a position to help you.

If you choose this route to regaining your credit rating you must be certain that the credit card company routinely and correctly reports you credit activities to all three credit reporting bureaus. You will is necessary to take it upon yourself to check your credit reports at least every three months. Granted you credit report will show your bankruptcy on your credit report for 10 years but if you use your credit cards wisely you’ll be able to set up a good credit score within a pair of years.

Again take your time to carefully read and study all the bankruptcy credit card info you receive. Doing a good of research will allow you to save you a great deal of money and rebuild your credit score.

This is by no means a comprehensive list; but just a guide. Credit is a two edged sword and is expected to be used wisely. If you obtain new credit and don’t control your spending, then you’ll probably be back on the same team that you were back in when you filed bankruptcy in the first instance; only you’ll not have the possibility of filing again for 8 years. If you live in Massachusetts and you’re considering bankruptcy, please feel free to contact us. Your consultation is free.

Tags:

Comments are closed.