Things That Will Determine If You’ll Be Approved For a Credit Card After Bankruptcy

Filing for personal bankruptcy is hardly a goal we wish to accomplish, but given hard times in the recent economy, good hard-working people may have to turn this corner in order to resolve financial problems. If you have had to deal with such issues, know that you are not alone, and with the assistance of a reputable bankruptcy attorney you can turn your life around and get back into financial shape. You may wonder, though, how easy it will be to get a credit card once you have passed these hurdles.

Once your period of bankruptcy is ended, the first thing you may want to do is re-establish good credit. You might feel intimidated, however, or worried that reputable credit card companies will reject your applications. If you have worked with an attorney specializing in personal bankruptcy, you will want to consult with him/her as to how soon you should look into getting a new credit card. Your lawyer can also advise you of which banks and organizations are more willing to work with people in your situation.

If you apply for a high rate credit card, one which offers a limited line of credit, you have an opportunity to prove you are trustworthy. Keep expenses to a minimum and make payments on time, and if you can pay off balances so they don’t carry over to the next pay period. As you show you are responsible with this one card, you may become eligible for better breaks down the road.

In the meantime, some things a financial institution may consider when you apply for one of their cards include:

1) Employment history – Do you presently have a job? If so, for how long? If you have a means of regular income, this can work in your favor.

2) Current credit possession. Do you have any minor credit cards, for department stores and gas stations, that you have been paying off on time? Showing responsibility for these accounts is good if you wish to rebuild your credit.

3) Home stability. Do you plan to stay in one place? You may find it is easier to re-establish your credit if you show you plan to set roots and work to regain financial trust. Acting transient may make creditors suspicious. If you were fortunate to keep your home during your bankruptcy, this could help you.

It is possible to get financial footing back following a period of bankruptcy. Consult with your attorney to learn how to achieve this goal.

Kathryn Lively is a freelance writer specializing in articles on Norfolk bankruptcy lawyers and Norfolk bankruptcy attorneys.

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