Rothschild & Ausbrooks, PLLC
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Should I apply for a new credit card post-bankruptcy?

For many people in Nashville who file for bankruptcy, credit card balances were a big factor in contributing to their debt. Therefore, you may feel understandably wary of using a credit card again once your bankruptcy has been discharged. However, you may still qualify for one and be able to use it responsibly to rebuild your credit if you keep a few things in mind.

To begin with, if your credit score is very low, a secured card may be your only option at the beginning. According to Bankrate, with a secured credit card, you provide a deposit that the company holds on to as collateral should you become delinquent paying your bill. If you use the card without any problems, it may later be converted to a standard unsecured card.

It is also vitally important that you do a fair amount of research before submitting an application for a new card. Each time you apply for a new account, it affects your credit score negatively. So make sure that you find a company that is a good match and that you know all the vital information beforehand, such as any annual fees and variable interest rates.

Finally, before you start using a credit card again, it may be helpful to carefully consider your past spending and what your intentions are for the future. If you racked up balances in the past by using credit cards for things you could not afford, doing so again will only land you back in hot water. But if you use your new credit card strategically and pay off the balances regularly, you should be able to avoid any major problems. This is general information on this topic and is not intended to be legal advice.

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Rothschild & Ausbrooks, PLLC
1222 16th Avenue South, Suite 12
Nashville, TN 37212

Toll Free: 866-656-8909
Phone: 615-866-2265
Fax: 615-242-2003
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