Credit card debt is one of the most pervasive debts in American society. In fact, the average American with credit card debt has about $15,000 to pay off, and for many people, declaring bankruptcy is the only solution.
After receiving the bankruptcy discharge, people often feel entitled to start completely anew. Many view obtaining a new credit card as a necessary step to build up their credit ratings once again. There are instances where acquiring a new credit card is possible, but you need to be extremely careful.
Get a secured card at first
As you try to acquire a new credit card, you will most likely find that many lenders will reject your applications. Bankruptcy remains on your credit report for up to 10 years, so you can definitely expect some pushback. However, you can still acquire a secured credit card. This is a card specifically designed for people trying to build their credit scores back up. Another great aspect of this card is that the lender will report everything to the major credit bureaus. This allows you to slowly but surely obtain a higher score.
Watch out for mail-in offers
Following a bankruptcy discharge, you may soon realize you get a lot more credit card offers in the mail than normal. You need to be extremely wary of these offers. Before signing up for any card, you first want to see what fees and APR come associated. Read through all the fine details carefully, so you do not end up with a card with a ridiculous interest rate.
Pay off the card on time
No matter which card you get in the future, you want to avoid the mistakes of the past. Always pay off your credit card bill in full every month. That means you want to avoid buying things that exceed your limit.