Getting an unsecured credit card after bankruptcy is often hard for most people. So it is not advisable that you immediately apply for one right after your bankruptcy proceedings.
There’s a variety of obvious reasons for this
– Your credit score is shot and there’s probably no bank that would approve your application.
– Even if someone does approve your application, you might revert back to your old spending habits and gradually fall back into debt again.
Generally you’d need time to adjust your habits and get used to spending less and paying more. That’s the beauty of having a secured credit card.
There’s no chance you’d fall into debt since what you’re spending is your own money. And the low limit actually forces you to live within your means.
This might seem hard at first, but it’s necessary to get yourself out of your old spending habits that got you into bankruptcy in the first place.
But a secured card doesn’t really give you credit. An unsecured credit card offers a lot more potential than a secure one; potential than can exponentially improve your life or your business.
Being a user of a secured card for some time, given that you’ve chosen the right card from the right bank and you’ve religiously paid, you’re credit rating should have already improved.
Your bank should begin to have faith in you ability to pay off debts on time, and offer you the usual unsecured card after bankruptcy.
This may seem enticing at first since this would be your first unsecured card after bankruptcy, but you have to actually weigh your options carefully.
You don’t want to accept one with a much higher APR then regret later on. Just be patient, the bank might actual offer you a card with an acceptable interest rate.
Or, if not, some other bank might offer you one. You can even begin hunting for a credit card that actually suits your needs once you’re confident enough about your credit rating.
In the end, only time and proper monitoring of your finances can repair your credit score.
Patience is the key to avoiding pitfalls in credit. Always weigh your options and think twice, even thrice, before accepting any offer or buying what’s on the shelf.
An unsecured credit card after bankruptcy could give you a boost or bring you back down to debt. So time it wisely.