Credit cards occupy an interesting financial position. Originally, the idea was convenience. You could quickly get a “loan” when you needed money, and you just paid it back at the end of the month. You didn’t have to use a card if you didn’t want one, but it could be helpful if you used it correctly.
Today, though, credit cards feel almost necessary. This is especially true with how popular online shopping has become. The fastest way to pay is just with a card, and most people have one. In fact, a lot of people almost never use cash, since they just get direct deposit payments from work. Instead, they put everything on the card and then electronically transfer the payment at the end of the month.
All of this is to say that having a card may feel like a necessity. If you declare bankruptcy, is one of the ramifications that you can never qualify for a card again due to your low credit score? It’s worth asking if losing out on the ability to use a card would be a major blow.
Building your credit back up
The key is to rebuild your credit score. You’ll be glad to know that you can get cards specially designed for this purpose. They’re often secured cards, meaning you provide a down payment at the start. You then borrow against your own money, eliminating the risk for the lender.
However, spending on that card and then paying off the balance increases your credit score. After you do that for long enough, you can apply for standard cards again. You can then use them to build your score up even higher.
It’s certainly a process, and it does take time. But you may qualify for secured cards almost instantly, and you can use them for the convenience of online buying and things of this nature. You certainly are not eliminating all chances at using a card again if you declare bankruptcy, so don’t buy into this myth if you hear it.
If you are thinking of filing and you have more questions like these, it’s important to learn as much as you can about the process.
