Filing for bankruptcy is not the end of the world. If you are thinking about filing for bankruptcy in Phoenix, but believe you will never be able to clear your financial slate clean, think again. Check out the following information if you plan on filing for bankruptcy and want to know if getting a credit card afterwards is a smart move or not.
A lot of people believe it is not a good idea to get a credit card right after you file for bankruptcy. However, getting a credit card allows you to build up your credit and establish a stable record of monthly payments, improving your credit situation. There are alternatives to a traditional credit card, like being added as an authorized user to someone else’s card, getting a secured credit card, or a credit builder loan.
How it Affects Your Credit
Bankruptcy will be on your record for about seven to ten years, depending on the type of bankruptcy you filed. Your credit score will decrease anywhere from 160 to 220 points. While creditors will check your credit report for your score and see your bankruptcy record, it will not automatically mean that you will be barred from getting a credit card.
Make Sure You’re Ready
Get a credit card only when you are ready because you will not be able to file for bankruptcy again for another six years. You need to make sure your finances are stable before you take on a credit card.
The best way to find out what steps to take before or after filing is to talk a bankruptcy attorney in Phoenix, AZ. Contact The Law Office of Larry Karandreas for a free consultation today.