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Can I Get Credit After Bankruptcy?

One problem that many people fear if they file bankruptcy is the inability to get credit post-discharge.  However, this fear is generally unfounded.  While you will not get the best interest rates until you re-establish your credit rating and you may have to settle for pre-paid credit cards for some time, you can and should begin seeking opportunities to regain your lost credit rating as soon as possible. Oswalt Legal Group in Phoenix offers advice and help for those who are considering filing bankruptcy.  Contact Oswalt today to find out how we can help you with your financial issues.

Gaining Credit After Bankruptcy:  Slow and Steady Wins The Race

The race to gain credit after filing bankruptcy is not a sprint but a marathon.  When you begin to apply for credit, you will have relatively few options compared to someone who has not filed bankruptcy.  However, over time, if you handle your payments carefully, you will begin to rebuild your credit and ultimately raise your score so that you have better choices.

  • Start small.  There are many pre-paid credit card companies that offer credit secured by a cash deposit.  This type of credit card allows you to deposit a small amount, make charges, pay the charges and gradually increase your credit limit.  At some point after you begin to pay on time, the company will usually offer you a small amount of unsecured credit.  As you continue to make timely payments, this amount will gradually increase.
  • Buy a vehicle.  Buying an inexpensive vehicle through a company that specializes in “bad credit or no credit” may be a good way to re-establish your credit rating as well as secure transportation.  Choose a reliable car that will get you from one place to another without very high payments.  Once that car is paid for, you can always trade it in for a nicer vehicle.
  • Pay on time.  The most important thing you can do is pay your bills on time.  This goes for your house payment, car payment and credit card payment.  No matter what payments you make, pay as much as possible and pay on time.  Paying only the minimum amount due and making late payments are red flags to creditors and may stop you from getting new credit.

Contact Oswalt Law Group in Phoenix if you are ready to take control of your financial future.

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