While going through the bankruptcy process, it is important to understand the reality of life after bankruptcy. In addition, it is important to learn about ways to recover from bankruptcy and land on two feet. One significant aspect of life after bankruptcy involves reapplying for credit cards and using them responsibly.
Credit Card Benefits and Risks
Some credit card companies send offers to those who have recently been granted bankruptcy. Individuals who have been approved for Chapter 7 should be aware that many credit card companies will likely be working hard to get them to sign up for new cards. It is important to recognize the possible drawbacks of opening credit card accounts after bankruptcy. These include:
- Higher annual fees
- Higher interest rates
- Risk of sinking back into debt
Despite these potentially costly dangers, there are good reasons to open credit cards post-bankruptcy. One benefit is that a person can build up a credit score back up by showing newfound responsibility. For some individuals, it may be a good idea to obtain secure credit cards. This essentially involves putting a down payment onto a credit card in advance, which may help prevent acting irresponsibly in the future.
If you are considering filing for bankruptcy, it is important that you know both the benefits and the potential hazards. Contact the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office, LLC, at 414-377-0518 for answers to your bankruptcy questions.