The North Carolina Bankruptcy Information Blog

Whether you’re considering bankruptcy or just coming out of it, you may be wondering the best ways to rebuild credit as soon as possible. Obviously, credit cards are one way to rebuild your credit history (and future) more quickly; but most people entering or exiting the bankruptcy process are well aware of the perils of plastic…and how difficult it can be to qualify for a card with a dinged credit past.

Here are a few ways to select a good credit card despite a bad credit history:

(1) Make to a Call to the Potential Creditor
You may not get offers in the mail, so it’s a good idea to “make the first move.” Give banks that appeal to you a call at the 800 number listed on their website in order to address their practices, policies and intentions.…

Becoming better with credit post-bankruptcy can be a daunting task for many clients. You’ve repaid or dissolved your existing debts, and are about to close your bankruptcy case with a new and improved outlook on your financial life. Unfortunately for many in your position, even well-intentioned Americans can return to their debt-full ways, even after the many lessons learned from their bankruptcy filing.

As a result, it’s important to take a first (or possibly second) look at the best ways to break the cycle of debt, this time for good! Five sound (but simple) strategies include:

(1) Bank on it.
Banks inevitably issue real credit offers.…

Just as average Americans are beginning to see more budgetary benefits from 2009′s landmark credit card protection legislation, the Credit CARD Act, they can also expect to see some not altogether unexpected side effects from their credit card providers: additional fees and higher rates.

In fact, while the CARD Act demands that card companies review customer files and lower rates where applicable to good payment history, according to a recent report from Marketplace’s Stacey Vanek Smith (of American Public Media), the changes can come at a cost.

“Millions of people saw their interest rates get jacked up and their credit limits slashed during the recession.…

In the midst of millions riding the waves of the real estate reckoning, even more ordinary Americans are facing the rising tide of credit card APRs. In fact, according to new data, the average credit card interest rate has recently climbed to an all-time high, with averages hovering just below 15%. These skyrocketing rates can be a serious burden for those carrying balances; forcing many to think twice before paying with plastic, and many others to lament last year’s holiday purchases.

The reason for these higher rates may initially seem surprising: better money management and credit card reforms. Recent increases in both the number and amounts of credit card fees, as well as the escalation of interest rates are a response to the fact that the overall amount of credit card debt that Americans are carrying has diminished in the wake of the recent recessionary spending practices.…

We all know that credit cards, with their excessive fees, high interest rates, and unforgiving fine print, can be the key to financial ruin…as well as many a personal bankruptcy filing. But now there’s a new unfriendly financial cost on the horizon: debit card fees.

These normally safe and fiscally responsible alternatives to their costly cousin, the credit card, are now coming into focus as the latest instrument by which banks are placing higher fees on unsuspecting consumers. The reason? New rules from the Federal Reserve poised to cut the amount banks can charge merchants for debit transactions.

And according to a new article in Raleigh’s News and Observer, these new rules for banks could mean new costs eventually passed on to you.  While we don’t normally notice these “swipe fees,” as they’re added into what retailers charge for goods and services, what we could expect are higher transaction fees or fewer benefits from banks looking to recoup what they’ll be losing in lost retailer “swipe” revenues.…

Debit cards are one of the many spending tools that can be good for a person rebuilding after bankruptcy. For the most part, anything that is backed directly by actual cash is the best way to ensure that you don’t get too deep again shortly after things are back in order.

There are some drawbacks to using a debit card though. Mainly, it won’t do much to re-establish your credit because it does not rely on credit and therefore won’t have any affect on your credit score. Debit cards are backed by a checking account with actual cash that gets debited according to what you spend.…

So you did it. You came to the difficult realization that you needed bankruptcy protection, you got through the process, and you received your discharge. First off: Congratulations! This is a very good thing. The mountain of bills that had been dragging you down for so long is gone — along with all the stress and anxiety of fending off the creditors who were trying to collect on those bills. You get to start over, free and clear.

Your next step is to take advantage of this unique opportunity. Whatever the reason for your bankruptcy, your immediate focus should be doing what you can to rebuild your credit and maintain your new found financial stability.…