In this article, you will learn how to get a credit card after filing bankruptcy. A lot of people who cannot go on with paying their debts are reluctant to file bankruptcy. Their fear is that they may not be able to get a credit card again. The best aspect of bankruptcy is giving you freedom from debt and allowing you have a fresh start. Now, you owe nobody and you have no worries about debt repayment. What can you do?
Take advantage of this opportunity and ensure that you don’t ever run into debt. Make earnest efforts to rebuild your credit score.
How To Get A Credit Card After Filing Bankruptcy : Bankruptcy And Credit Score
Once you file bankruptcy, it automatically destroys your credit score. The bankruptcy remains in your report for 7 to 10 years based on the type of bankruptcy you filed.
How To Get A Credit Card After Filing Bankruptcy : Apply Only When You Are Ready
Ensure you apply for a card when you are ready to use your credit card wisely. This means that you should be ready to pay for your balances in full monthly. Also, you will avoid late payments and any delinquencies. Being ready to use your card wisely will save you from any debt or things that will spoil the new credit history you are trying to build. Avoid overspending and any habit that will affect you negatively.
How To Get A Credit Card After Filing Bankruptcy : Review Credit Card Offers
How can you do this? Check your mailbox, you will see a lot of credit card offers from different creditors. Financial institutions often target people who just filled bankruptcy to offer them credit cards. Some of them even give you a pre-approval demanding that you apply for their card. But pre-approved credit cards do not grant an automatic approval. You may be denied a card. If you get approved, check the interest rates, if you cannot afford it, back off.
Do Not Expect Too Much
Credit cards for people who have filed bankruptcy usually carry high interest charges. Rewards and low-interest rates cards are for consumers with excellent credit scores. Now is a time to show that you can use your card responsibly. If you prove your creditworthiness, you can qualify for better cards. Before applying, ensure that your creditor reports to at least one of the three major credit bureaus, or even all three. This will make your reports to reach the right place. It will be used for building your credit.
Get A Secured Credit Card
Secured credit cards are perfectly ideal for building credit . However, you need to provide or make a security deposit against your credit limit. Note that certain secured credit cards may not approve you if you had a bankruptcy discharged within the past one or two years; review the card agreement form carefully for any secured credit card you choose. You can check out these secured cards: U. S. Bank secured Visa Card, Wells Fargo Secured Visa Credit Card, Discover It secured card and Capital one Secured MasterCard.
When you consistently make your monthly payments, your creditor may convert your card to an unsecured credit card. Other credit card issuers may be more willing to approve you for an unsecured credit card.
Retail Credit Cards
Retail credit cards are also easy to get for people who just filed bankruptcy. It has some restrictions though, you can only use it for a particular shop.
Avoid Cards You Cannot Afford
Before you choose any card, carefully review the fees. Some of these credit cards have very exorbitant fees and interest rates. The creditors often want to take advantage of people who filed bankruptcy. If you cannot pay the annual fees and other fees included in the card, simply leave it. Go for a card you can afford.