Chapter 7 is the bankruptcy choice for most individual filers in Michigan. It gives you a fresh start with your finances. The only downside is it takes some time to rebuild your credit. The good news is that with patience and discipline, rebuilding your credit after bankruptcy is possible.
Secured credit card
Your chance of getting an unsecured credit card after personal bankruptcy is slim. Another option is to apply for a secure credit card.
A secured credit card requires a cash deposit. The deposit is usually equal to your credit limit. If your credit limit is $250, you’ll need a $250 deposit to open the account. Bankrate reports that a secured credit card can possibly help raise your credit score in less than six months.
To benefit from a secured credit card, you must use the card wisely. Use this opportunity to show that you’re responsible and creditworthy.
An alternative to a secured credit card is a card for people with poor credit. You’re likely to get approved even if you have a history of bankruptcy. The catch is that you’ll pay more interest or an annual fee. If you decide to take this option, compare several cards so you can choose the card that’s best for you.
You can also apply for a retail store credit card. Some retail stores are less strict with their approval process. It’s not a major credit card, but it can help you rebuild your credit.
You must prove you’re trustworthy and can pay your bills on time. When you get a credit card after bankruptcy, using it responsibly is important. Pay on time and never max out the card. Doing this will slowly rebuild your credit after bankruptcy.