Rebuilding Credit: Beware Certain Types of Credit Cards - Westgate Law

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Rebuilding Credit: Beware Certain Types of Credit Cards

Post-bankruptcy the main concern is rebuilding credit that was unavoidably affected by your bankruptcy. When you file, the bankruptcy is a public record and will be listed as such on your credit reports from all of the major credit reporting companies. It stays on the report for years and there’s nothing that can be done to change that. What you can change, in spite of the listing of your bankruptcy filing under the Public Record section, is your credit score. The quickest and easiest way to do so is to obtain a credit card and use it responsibly in order to begin building a positive history of payment on credit post-bankruptcy.

When considering the offers for credit cards that you will receive in the mail post-bankruptcy there is one credit card offer that will need to watch out for and avoid. Read the terms and conditions carefully. Some credit card companies are now offering credit cards with “no grace period.” If you see this phrase it means that you can pay the card in full (the complete balance) on time and you will still be charged interest. In comparison, most credit cards offer you a “grace period” of 21 days or so after a purchase is made before you are charged interest. Another phrase you might see is, “We will begin charging interest on purchase or cash advances on the posting date.”

The only appropriate place for credit card offers coming with “no grace period” is the garbage. Don’t consider them for a minute. You will receive many offers. Chose a different one.

For more advice on how to manage your bankruptcy and how to recover quickly after filing, contact the California bankruptcy experts at Westgate Law. We know where to start when rebuilding your credit post bankruptcy. 

About the Author

Justin Harelik

Justin has a singular goal: to get people out of financial distress and move them to financial stability and prosperity. He does this by combining 15 years of in-depth experience in bankruptcy, credit management, debt negotiation and student loan modifications, and he does it with both English and Spanish-speaking clients.

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