Can I Get A Credit Card After Bankruptcy?

Credit Card

The good news is, after your discharge the freeze on your ability to apply for credit will end. The bad news is that your credit score will likely prevent you from accessing most traditional credit cards. However, there are some Las Vegas lenders that are eager to you a new card in the mail depending on your income. That’s because given your discharge, you are barred from filing for bankruptcy again for another 7 years. These cards also typically come with a sky-high interest rate and low credit limits.

Secured Credit Cards

One option other than a traditional credit card is what’s known as a secured credit card. Standard credit cards allow you to borrow against an unsecured revolving line of credit. If you default, there is no secured asset for the credit card company to try and collect like with a mortgage or car note. Secured credit cards are different in that you are required to make a minimum deposit up front to use your card. For the most limited cards, your credit limit will be the exact amount you deposited. Other cards will set your credit limit as a percentage or multiple of your deposit. Some of these secured cards come with high monthly fees that can eat up your deposit. If you get behind on your payments on your secured credit card, the card company will take your deposit in order to satisfy your debt. Any remaining balance would be an unsecured debt just like any other credit card.

The Risks Of Credit Card Debt After Bankruptcy

For many, operating with credit is a necessary part of life. However, the biggest risk of new credit card debt after your bankruptcy discharge is that it can quickly put you back into the same financial pit you just crawled out of. And this time, you will have to wait years before you have the opportunity to file for bankruptcy protection again. In some ways, it is easier to be overwhelmed by credit card debt after your discharge than before. That’s because the credit you will have access to will come with exorbitant APRs and the potential for hefty fees. Discussing your plan for accessing credit after your discharge is an important conversation to have with your attorney before or during your bankruptcy.

Questions About Life After Bankruptcy? We Have The Answers

It is understandable if you have a lot of questions about filing for bankruptcy in Nevada. The experienced Las Vegas bankruptcy attorneys at Vohwinkel Law have the answers you’re looking for. Contact Vohwinkel Law today for a free consultation.