Getting A Credit Card After Bankruptcy - 3 Things You Should Know

Declaring bankruptcy doesn't mean that you'll never beas you prove yourself a worthy customer. If you don't
able to get credit again. In fact, you may find that creditmake payments, the credit card company will use that
card companies are still sending you offers anddeposit as payment on your account.
applications in the mail! But before you decide to signYOU MAY HAVE TO PAY HIGHER FEES
up for another piece of plastic, there are some thingsAnother way of protecting themselves against the
you should know.higher risk of a post-bankruptcy customer is by
YOU MAY HAVE TO PAY A HIGHER INTERESTcharging a higher annual fee. In most cases, expect to
RATEpay about $30 or $40 a year for the privilege of
Super low interest rates and zero percent offers arehaving your credit card. Your over-the-limit fees, late
for the best customers with the best credit. Sincefees and other charges are likely to be higher than
you've declared bankruptcy, you're a higher risk for theaverage, too. Your terms may also be more stringent,
credit card company. And because of that, chancesand you may have a shorter grace period (or none at
are you'll have to pay a higher interest rate than theall!). Here is a list of recommended Credit Repair
average customer. In fact, it's possible your rate will beLenders online. It's important to use a reputable lender
as much as 5% higher! However, if you remember toonline to make sure your personal information is
pay off your balance each month, the higher ratesecure.
shouldn't affect your finances.It is possible to get a credit card after bankruptcy.
YOU MAY HAVE TO SECURE THE CARDHowever, chances are you'll have more costs
A secured credit card requires you to pay a lump sumassociated with it, such as higher fees and a higher
of cash--typically $250, $500 or more--to the creditinterest rate. However, if you regularly make your
card company. This cash is then used as collateral, andpayments on-time, and you pay off the balance every
is usually the maximum limit on your card. However, ifmonth, your costs should be minimal.
you pay regularly over time, your limit may get raised