How Soon Can I Rebuild My Credit After a Chapter 7 Bankruptcy?

On behalf of Bankruptcy Law Firm of Clare Casas on Sunday, August 22, 2010.

The most common question I am asked by those that are interested in filing a Chapter 7 bankruptcy is "How soon will it take to rebuild my credit score after filing bankruptcy?" Most are surprised to learn that they will be begging to receive credit offers within months of receiving the order discharging their debts. I always tell them that with a word of caution though.

There are many companies who charge outrageous fees for their credit cards. I saw one offer where they were giving the person a $250 credit line. A careful reading of the fine print, however, showed that there was a hefty fee for "processing" the card, a large annual fee, and a monthly recurring charge. All told, these fees and charges totaled just under the $250 credit limit that was being offered. Their first statement after receiving the card was already at the credit limit! Stay away from those offers!

Most of the major banks offer secured credit cards to those wishing to establish credit. These banks operate in a straightforward manner. You open up a savings account with the bank and they issue a credit card equal to the amount of money you have on deposit. Your money earns interest while you are rebuilding your credit. Those are the type of cards that I reccommend to my clients and those should be the only type of cards that you should consider. Check my website for a list of banks that offer secured cards and beware of the mail.

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