As much as we all would want to avoid having to file bankruptcy, sometimes for some people there really is no other option, when this occurs these people often start worrying about things like the obtaining of a good credit card after bankruptcy.
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
Although these credit cards are available after bankruptcy they can be a risky option for some. Not only will you be dealing with higher interest rates but you will be charged on late payments and this can quickly add up.
It is not uncommon for people to take out these cards in an attempt to better their financial situation, this is despite the fact that it is not unusual for the total annual fees associated with the card to add up to much as the card holders very credit limit.
Troubles Can Keep Adding Up
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
There really is no way out either, with the exception of paying the balance on the credit card. Quite a lot of companies demand that the payment be made within 30 days and if that does not happen you would face collection action.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 23204
Neither the less, there are some financial companies that have no trouble offering to issue a person a credit card after bankruptcy, although usually with a higher interest rate and annual fees attached.
One the reasons companies will offer a credit card after bankruptcy is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.
Thanks to this credit card companies have a legal recourse to use to collect any debts the credit card holder may end up with. Credit card debts are normally unsecured, however when someone cannot file bankruptcy, wage attachment can be used by the company to get back their money.
Although these credit cards are available after bankruptcy they can be a risky option for some. Not only will you be dealing with higher interest rates but you will be charged on late payments and this can quickly add up.
It is not uncommon for people to take out these cards in an attempt to better their financial situation, this is despite the fact that it is not unusual for the total annual fees associated with the card to add up to much as the card holders very credit limit.
Troubles Can Keep Adding Up
Unfortunately, if you have a credit card after bankruptcy, and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.
But it gets worse; all this will push your liability up to $320 which in turn will give you an additional $30 fee because you were over your limit. Now you would have a $350 debt.
In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because you failed to meet your obligation on the credit card after bankruptcy.
There really is no way out either, with the exception of paying the balance on the credit card. Quite a lot of companies demand that the payment be made within 30 days and if that does not happen you would face collection action.
Wage garnishment, court proceedings and daily phone calls are just some of the things you can expect from here on in and it could well be years before you manage to clear up all your debts.
So there you have it, is it possible? Yes. But is it advisable? That is obviously going to depend on your ability to keep in check with payments and just how much you really need a credit card after bankruptcy. - 23204
About the Author:
Were you questioning How To Get A Credit Card After Bankruptcy? If so I hope the info helped!
No comments:
Post a Comment