Bankruptcy is a legal proceeding that involves an individual or a business being unable to pay their outstanding debts. For individuals in Kentucky, it’s important to understand how bankruptcy can impact their ability to get a credit card.
Bankruptcy has several negative effects on a person’s credit score and will last for years. This is due to the fact that creditors will never receive the money that was owed to them. For this reason, obtaining a new credit card will be a lot more difficult right after bankruptcy. However, getting one may not be impossible.
For individuals in pursuit of a credit card after bankruptcy, it will take a little time finding a company that is willing to give a line of credit. Most individuals will only be able to get a line of credit with companies offering a secured card, which requires a refundable deposit. Individuals may also get approved for cards specifically designed for those with bad credit.
Debtors should keep in mind that these types of cards usually come with high interest rates and other fees. However, those who have learned from their past financial mistakes might find that these cards could still be a good option to rebuild credit.
Filing for bankruptcy can feel overwhelming, but there are steps that can be taken toward financial freedom. An attorney may help individuals navigate bankruptcy and debt relief in numerous ways. For instance, a trusted attorney might go beyond the courtroom and help individuals rebuild their credit by providing support and guidance. An attorney may be able to help individuals maintain their financial independence by offering resources regarding secured cards, improving their credit score and more.