"Credit Card After Bankruptcy" is an article about how to find the best credit card after bankruptcy. It looks at some of the most important things to look for.
If you know where to look and what to look for, it's not hard to find the best credit card after bankruptcy.
First, let's talk about credit cards that require a deposit and those that don't. A lot of people ask themselves, "Should I apply for a secured credit card or an unsecured credit card?" when they want to get a credit card after bankruptcy.
If you don't know the difference, a secured credit card is "secured" by special savings account you set up with the credit card company. This account acts as collateral for your credit limit.
For example, if you put $500 into a special savings account, you can borrow up to $500. If you don't pay your credit card bill, the company that issued it will just take the money from your special savings account.
Unsecured credit cards are, well, not backed up by anything. This means that the person fills out a credit application and is given a certain credit limit based on their credit report, income, etc. Of course, they could also be turned down based on the rules of the credit card company.
Which one is best? It depends on how good or bad your credit is. But if you apply for a secured credit card instead of an unsecured credit card, you have a better chance of getting it.
But be careful. Not every secured card is the same. Worse yet, there are a lot of banks out there trying to sell secured credit cards.
So how do you get the best credit card after bankruptcy? Make a list of the things the secured card must have in order for you to think about it. I use eight criteria when I look into secured cards. Not many things meet these criteria, so I can quickly narrow down the list.
This is just one of the things I look at when I'm looking for the best credit card after bankruptcy. Think of the money you could save! Depending on how much you keep in your account, you could save hundreds or even thousands of dollars in interest over the course of a few years.
Okay, here's another one: the cost of applying. Again, I found some secured credit cards with no application fees and one with an application fee of... are you ready for this? $120! People have paid it, which is sad.
Let me give you one more thing to look for in a credit card after bankruptcy: You should make sure that the company that gave you the secured card reports to all three credit bureaus. But you also want to make sure they report it in a certain way.
I can't list all eight criteria here, but hopefully, this gives you an idea of some of the things you need to think about when looking for the best credit card after bankruptcy.
Also, don't try to get too many credit cards at the same time. If you do, your credit score could go down. So, if you're not sure if you'd be approved for an unsecured credit card, you might want to apply for a secured credit card instead.
Now you know how to find the best credit card after filing for bankruptcy.
