Is It Possible To Get Credit Cards After Bankruptcy?
Almost anyone can get credit soon after a bankruptcy. It’s just a matter of knowing how.
It is true that bankruptcy deals a devastating blow to your credit and your credit score, the three-digit number lenders use to gauge your creditworthiness. But the effect does not have to be lasting.
Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for.
Let’s talk about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?
Secured credit cards have not always been very desirable in the past because some do not help you rebuild your credit. A secured credit card basically is a second chance card.
When you get a secured credit card, you have a savings account created for the card. The limit of the card is the amount of money in the account. You can not go over what is in the account. Payments are sometimes taken out automatically from this account.
Believe it or not, secured credits usually have a much better deal than an unsecured credit card. The limit is usually very low $200 or $500, but this will keep you from having a hard time being able to pay off the card. The bonus is that this limit will be raised with your credit score or several months of on time payments.
Unsecured credit cards are just that – unsecured. Meaning the person fills out a credit application and, based on their credit report, income, is approved for a certain credit limit. Of course, they could also be declined depending on the credit card issuer’s guidelines.
So which is best? It depends on your credit history. However, if you apply for a secured credit card you have a higher chance of getting approved versus an unsecured credit card.
Getting a credit card after bankruptcy to start rebuilding your credit rating is a marathon, not a sprint. You must carefully plan when and how to use your credit card so that it becomes an asset instead of a liability. Make sure that you pay off the full balance each month, well before the due date, and use your credit card only when absolutely necessary. After every 6 months of responsible credit management, call your lender and ask for a lower interest rate.
Life with credit cards after bankruptcy is possible. It will just cost the account holder extra money in the beginning. Visit: http://www.mycreditcardmoney.com.
Related posts:
