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Credit Cards after Bankruptcy

by | Oct 15, 2019 | Bankruptcy Articles

Even though it may be more difficult to get some loans and credit after bankruptcy, interestingly, you will still likely receive offers for credit cards and be able to obtain other types of loans.
Generally, the interest rates will be higher and the credit limits will initially be lower for those who have filed bankruptcy, but they will still generally be able to obtain credit.

Often it is easier to obtain credit cards after filing for bankruptcy protection than before one files bankruptcy. This is primarily because the lenders understand that you typically cannot file a bankruptcy again for another 8 years. You will also have fewer bills to pay, so you will have more ability to pay your new credit card bills. All those who file for bankruptcy in Orange County will have taken a class on financial management, as this is a requirement in Chapter 7 bankruptcy. Lenders often feel that with this training, individuals can handle their financial affairs better after bankruptcy than before. So, you may be a better credit risk after bankruptcy than before!

Your FICO score will typically increase right after filing bankruptcy because about 1/3 of your credit score is based on the total amount of your outstanding debt which is eliminated through bankruptcy.

It is not uncommon to receive credit card solicitations soon after you file bankruptcy. We typically recommend that our OC Chapter 7 and Chapter 13 bankruptcy clients get a few credit cards after they file bankruptcy, and then pay off the balance each month to re-build their credit.

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