Having to file for bankruptcy is a life changing event and can impact more than just your financial standing. Your entire lifestyle will change as you begin to recoup and adjust to the way things will be after your bankruptcy has been discharged. Many companies will still loan you money, but typically at high interest rates that can quickly get you into financial trouble. Good credit can be re-established after a bankruptcy with a little time and effort. If you are currently facing foreclosure, garnishments, debt collection calls, debt collection letters, high medical bills, or feel as if you are in way over your head financially, then bankruptcy could be just the solution you have been looking for. An experienced bankruptcy attorney in Utah will be able to ensure that your rights and interests are protected from the time your petition is filed until the time your bankruptcy is discharged.
Getting a credit card after bankruptcy
You will need to look for a secured line of credit with your new credit card. These are designed for people with bankruptcy, foreclosure, or less than favorable marks on their credit reports. They are flexible, but they are typically limited in terms of maximum credit line. It is usually a very low amount. A card can usually be obtained almost immediately once your case has been discharged.
How to keep good credit once you have it
Once you have established better credit after bankruptcy, you are still required to be responsible. Pay as much as you can afford to each month and your credit score will go up faster as it will put you in better standing with the credit bureaus. Keep the card balances at a manageable level. If the card amounts stays low, then you will be able to pay them off easily each month and this will show that you are worthy of larger credit amounts from other lenders.
Climbing out of the foreclosure hole
After proving yourself responsible with on-time payments, lenders will begin to look on you more favorably. This is not always a fast process. It will take at least a year for your credit to be in good standing. After your score has improved, you should then have no trouble in getting a retail credit card, a store specific card, or a gas card to continue to build your credit.
It is a long and challenging road, but you can rebuild your credit and get your life back on track. Get the help you need from a skilled bankruptcy attorney today.
