File Bankruptcy in Chicago & Rebuild Your Credit With a Secured Credit Card

When a Chicago resident is discharged of their debt through bankruptcy, their first question will likely be, "what now?" The first order of business: rebuilding your financial profile. This usually starts with your credit score.

There are many tips to rebuild your credit after bankruptcy. Obtaining a credit card is a great place to start. However once bankruptcy shows up in your credit history typical credit card companies are unlikely to approve you. You may have luck with a credit card issued by a store or retail group. These cards are heavily promoted and have looser guidelines because the use of the card is both an income generator and marketing tactic for the company. But even store cards can be hard to obtain shortly after bankruptcy.

The best option for someone who has recently filed for bankruptcy is a secured credit card. Typically a secured credit card is obtained when the card holder makes an initial "deposit" to the credit card company. This amount is typically equal to your credit limit and acts as a guarantee against your purchases.

Due to the upfront payment a secured credit card can seem like a debit card. However just like an unsecured credit card you will be responsible for monthly payments and will be charged finance charges on your unpaid balance.

It is very important to make sure you do your research. Not all of these cards are the same and some companies may try to charge extra fees that will come out of your balance. Don't fall for hidden fees and requirements. A secured credit card should be fairly straightforward.

After filing for bankruptcy your credit score will fall significantly. The good news is that the score can start to be increased immediately after your debts are discharged.  Bankruptcy remains on your report for 7-10 years however you may have your score up to an acceptable level in as few as 3 years. A secured credit card is a great way to start improving that score!

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.