When you file for Chapter 7 bankruptcy in New York, you may think you will not be able to have a credit card again. We at Macco and Stern, LLP, know it is important for you to understand your credit options after bankruptcy.

Most of the time, filing for bankruptcy means that your credit is temporarily frozen. U.S. News says that this credit freeze is typically between four to six months for a Chapter 7 bankruptcy. Once your bankruptcy is over, though, you can usually rebuild your credit. It is important to remember that your credit line may be lower than it used to be. Sometimes you may also have higher interest rates. However, there are ways you can have a credit card and slowly rebuild your credit.

Sometimes you may want to rebuild your credit in a way that presents little risk. You typically have several options available to you. You might choose to use a secured credit card. In this situation, you typically put up a deposit to borrow against each month. Additionally, it is a good idea to consider becoming an authorized user on a family member’s credit card. Both of these options can be ideal if you encounter difficulties getting approved for a credit card. 

After a bankruptcy, it may take time for your credit rating to reach its previous status. However, there are several ways you can improve your credit. It is a good idea to make sure all of the information on your credit report is accurate. If you find any errors or inconsistencies, you can usually ask to have these removed. Additionally, about 35 percent of your credit score is based on your payment history. Paying on time each month can help ensure your credit rating goes up. More information about this subject can be found on our webpage.