| If you have had to declare bankruptcy for any | | | | a balance of $500 in your account. |
| reason, it is easy to get overwhelmed by the | | | | |
| sheer volume of things to consider. But, | | | | Because your debt is secured by a |
| getting a credit card after bankruptcy is one | | | | predetermined amount, you can generally get a |
| of the best ways to begin rebuilding your | | | | more favorable rate of interest from these |
| credit score, if you are careful and | | | | lenders. But, it is recommended that you pay |
| selective about choosing the right card and | | | | the full balance each month to keep your |
| provider. | | | | account in good standing. Look for a card |
| | | | that will offer the option of becoming |
| Let's face it; a bankruptcy is a huge blow to | | | | unsecured after a period of responsible use. |
| your credit-worthiness. However, a sober | | | | |
| assessment of your situation, followed by | | | | Unsecured Credit Cards |
| learning from the mistakes that may have led | | | | |
| to the bankruptcy, is key to getting your | | | | Unsecured credit cards are easily available |
| financial house back in order by obtaining | | | | from all sorts of lenders and there lies the |
| lines of credit that you can use to rebuild | | | | rub, easy availability. These cards offer |
| your credit score. | | | | huge come-ons about increased lines of credit |
| | | | without the need to maintain a balance, but |
| Get Credit Reports From All 3 Major Credit | | | | you run the risk of repeating some of the |
| Bureaus | | | | same mistakes that may have contributed to |
| | | | your bankruptcy in the first place. |
| The first step to finding the best rates on a | | | | |
| credit card after bankruptcy is getting a | | | | In fact, there are many credit card outfits |
| copy of your credit report from each credit | | | | out there that specifically target people |
| bureau. Lenders rely on the credit reports | | | | that have filed for bankruptcy and take |
| from 3 main credit agencies to determine your | | | | advantage of this by offering egregiously |
| credit-worthiness, and the rates that you | | | | high interest rates. Also, they further |
| will pay on borrowed money. These agencies | | | | leverage their position by nickel and diming |
| are: Experian, Equifax, and TransUnion. | | | | you with all sorts of application fees meant |
| | | | to prey on your financial vulnerability. |
| After you receive your reports, carefully | | | | |
| examine them for inaccuracies that can | | | | Whichever type of credit card that you |
| continue to undermine your efforts to | | | | choose, make sure that you explore all of |
| re-establish credit. If you discover claims | | | | your options, and read the fine print before |
| that are false, contact each agency and: | | | | you sign the agreement. There may be hidden |
| | | | fees and costs that will hinder, not help, |
| | | | you in your quest to rebuild your credit |
| | | | rating. Also, make sure that you do not |
| - Keep a record of all correspondence. | | | | apply for more than 1 or 2 different credit |
| | | | cards. Each rejection will negatively affect |
| - Write a letter to each agency disputing the | | | | your credit rating, and defeat the purpose of |
| inaccuracies. | | | | getting a credit card in the first place. |
| | | | |
| - Notify the business that reported the false | | | | Summary |
| claim in writing and tell them that you are | | | | |
| disputing it. | | | | Getting a credit card after bankruptcy to |
| | | | start rebuilding your credit rating is a |
| - Request that the agency contact the | | | | marathon, not a sprint. You must carefully |
| business so that the dispute can be resolved. | | | | plan when and how to use your credit card so |
| | | | that it becomes an asset instead of a |
| - Make sure that a record of your disputes is | | | | liability. |
| included in future credit reports. | | | | |
| | | | Make sure that you pay off the full balance |
| Secured vs. Unsecured Credit Cards, Which is | | | | each month, well before the due date, and use |
| Best For Your Situation? | | | | your credit card only when absolutely |
| | | | necessary. After every 6 months of |
| There is no stock answer that will work for | | | | responsible credit management, call your |
| everyone on this. The particulars of each | | | | lender and ask for a lower interest rate. |
| person's situation will dictate which option | | | | They might not honor your request each time, |
| will work best for them but here are some | | | | but they will like the fact that you are |
| facts to inform your decision: | | | | actively pursuing the means to manage your |
| | | | credit more effectively. |
| Secured Credit Cards | | | | |
| | | | The next time you reach for your wallet and |
| Secured credit cards are cards that are | | | | don't have the cash on hand to make a |
| issued from banks or credit unions that | | | | purchase, ask yourself, "Is this a want or a |
| guarantee a specific line of credit as long | | | | need?" If the answer is the former, put your |
| as you have a corresponding balance in your | | | | wallet away and congratulate yourself for |
| account that they can use as collateral if | | | | making another step on the long road of |
| you default on a payment. For example, if you | | | | credit rating recovery. |
| have a $500 line of credit, you must maintain | | | | |