It would be in your best interest to start rebuilding credit as soon as possible. You will find that applying and getting a credit card may be difficult after a bankruptcy. You will need to apply for a secured credit card or a credit card for bad credit. Even in this category, you are not guaranteed approval. You should consider trying a few different credit card offers at the same time. Normally you would not do this if you had fair, good, or excellent credit. The reason being for every credit card you apply for you receive a credit inquiry which will lower your overall credit score. In your particular case, it doesn’t matter. You already have a low credit score due to late payments and bankruptcy.
High Credit Card Fees are Associated With Credit Cards for Bad Credit and With Secured Credit Cards
Keep in mind that applying for credit cards in the bad / poor credit category requires that you will be paying a fee(s) to the credit card companies. Pay them. They may seem high but pay these credit card fees. This is the only realistic way you will receive credit for your credit score. Try getting two or three credit cards. Having multiple trade accounts simultaneously reporting good credit history will be a huge benefit.
As time goes by your credit score will improve. It has been easier for people in recent years to get back on track after bankruptcy. Many people over the past few years have faced similar circumstances to yours. Banks are more forgiving over the past few years. Many credit institutions have begun to concentrate on the more recent credit history. Your bankruptcy will remain on your credit report for ten years, but if you pay your bills on time, you will have the opportunity to rebuild your credit score.
During your time of rebuilding, you do not under any circumstance want to miss a payment. If you start missing a few payments here and there, credit lenders will still see you as a credit risk. After a year of on-time payment history, you will begin to see improvements in your overall credit score. You might be able at this time to get a credit card with a low fee or no credit card fee. You might at this time want to consider a different type of loan. One example would be a car loan. Because a car loan is secured against your vehicle, they are easier to get approved for than an unsecured loan. A car loan is a different type of trade account that is recorded on your credit report. This type of loan would help strengthen your overall credit score.
Rebuilding credit history can be very challenging after a bankruptcy, but with a little time and effort, you will be amazed at what you will be able to accomplish. Just remember that the key is not to miss any more payments. Doing this alone will do the most to help you rebuild your financial life.
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