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