Bankruptcy Credit Card
There are many credit card issuers out there promoting what some people refer to as "bankruptcy credit cards" - that is, credit cards for people who have a bankruptcy on their credit report. Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies - but for the purpose of this article, we will use the term "bankruptcy credit card".
Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it's "secured" by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.
So how do you go about choosing a "secured" bankruptcy credit card? In After Bankruptcy Credit Solutions I cover eight criteria you can use. Well, while researching some bankruptcy credit card issuers I came across one that charged a $120 application fee.
Reports to the major credit reporting agencies .This is very important - if you want to rebuild your credit history, make sure the issuer of the bankruptcy credit card reports to the major credit reporting agencies: Experian, Equifax, and Trans Union.
Reports credit limits ,Why is this important? If the bankruptcy credit card issuer does not report your credit limit, this could lower your credit score with some credit scoring models because they may automatically assume you are at your limit - even if you are using only 10% of the available credit line.
We've only touched on three of the eight criteria I cover in After Bankruptcy Credit Solutions. But, at the very least, it should give you a starting point when it comes to choosing a bankruptcy credit card. There are many ways to recover your credit score if you just filed for bankruptcy. Credit card debt will turn your credit score to garbage because the companies which lend you credit, are doing it on good faith; they are not asking for any assets as insurance, they trust you will pay back everything you spent, as it is intended to be.
How to repair the credit score and how to rebuild our credit life.? After the waiting the period, how am I supposed to fix what the credit card debt did to my credit score?If you want any credit company to take a look at you and not see in their files that you are a credit card debtor, you will need to assure them. The only way to do it, is securing the credit card with a property of yours.
How much can I receive due to my previous history with credit card debt?Because of your history with credit card debt, companies will not easily lend you a high credit line. Do not even think about a $9000 credit limit.How can I convince lenders that I no longer am a credit card debtor?Credit card lenders will notice how your progress is moving along. Just look elsewhere to get that credit line.
What else can I do to show them I will no longer fall into credit card debt? To show them that you no longer have interest in being a credit card debtor, you must take care of your credit lines and your current payments. You should check your credit score once in a while to make sure everything is in order, and that the credit report is accurate to steer clear of unpleasant situations whenever you ask for a new credit card.
Getting Credit Cards After Bankruptcy
Increasing market competition has ensured that there are now credit card providers who specialize in providing credit cards after bankruptcy. It is not too difficult to get a credit card after bankruptcy from these kinds of credit card providers.
It is not difficult to rebuild good credit after bankruptcy. Once you have eliminated debt by filing for bankruptcy you can make a new start by applying for bankruptcy credit card application. You should take care that you fill you bankruptcy credit card application properly. While filling up your bankruptcy credit card application make sure that all your paid expenses are shown as paid or else they would tag along and spoil your new credit report.
You can either opt for secured credit cards after bankruptcy or unsecured credit cards after bankruptcy. A secured credit card after bankruptcy is a wiser decision than an unsecured credit card. These are secured by special savings account one establishes with a credit card issuer which acts as a security for his credit limit.
A unsecured credit card is exactly its opposite. Once you have opted for a secured or unsecured credit card after bankruptcy make sure that you build up a good credit report. Credit cards after bankruptcy while on one hand may prove to be expensive, but then, they can help you secure a stronger footing in future with regards to your credit rating.
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