Credit Card Offers After Bankruptcy

Buyer Beware

All one has to do is look at statistics and you will read where over the past few years  the filings of bankruptcies has escalated in the United States. With the change of bankruptcy laws last October 2005, many consumers that were overburdened with debt, who may have otherwise not filed, did so in fear of how the new changes would affect them had they waited.

Okay so now it’s done. The bankruptcy has been filed, you have been to court and your case has either been dismissed or you are making agreed upon payments depending on which chapter of bankruptcy you filed which would have been either Chapter 7, Chapter 11, or Chapter 13 depending on your assets and goals. Suddenly credit card offers are filling up your mailbox. Now what? There are two words you need to be made aware of, buyer beware.

These offers are going to look attractive and inevitably credit will need to be reestablished. The only way to do that is by starting a new payment history. If you haven’t already, you will start to receive credit card offers on a regular basis. The invitation will look pretty and the offer will be enticing but before you jump in with both feet, read the fine print. Read every single page. These are normally high interest credit cards that are advertised as pre-qualified unsecured with very high fees that can get you right back into the financial mess that you were in prior to filing bankruptcy. This situation is the proverbial Catch 22. The fact is you almost have to have at least one credit card to rent cars and reserve hotels. Most will accept debit cards, but a debit card will not help you to reestablish a credit history. Simply be aware of a few things before you sign on the dotted line.