subject: Getting A Credit Card After Bankruptcy [print this page] Getting A Credit Card After Bankruptcy Getting A Credit Card After Bankruptcy
Obtaining credit after bankruptcy isn't just possibleit's actually good for you. You don't build your credit history by avoiding credit, so you can't expect
your score to go anywhere if you don't get back into the game. You may not get the best rates at first, but it's a small sacrifice to make in exchange for a
better credit score. Many banks and credit institutions are more than willing to extend bankruptcy credit to struggling debtors. Here are some tips to help
you get there faster.
Read Pre-Approved Offers.
Lenders know how important it is for you to rebuild your credit after bankruptcy, so expect a number of credit card offers on your doorstep following your
discharge. These aren't necessarily badsome of them may actually offer a good deal. You may even find some that are pre-approved, meaning you don't have to
go through the usual credit checks. Compare the best ones to get an idea of the going rate for bankruptcy credit cards.
Understand The Terms.
Before signing up for a post-bankruptcy credit card, make sure you've read through all the terms and conditions. These cards tend to have a high interest
ratesometimes as high as 30 percentas a way for banks to shield themselves from risky borrowers. Also take note of the credit limit, annual or monthly
fees, the "grace period" for late payments, and the late fees which tend to be excessive.
Get In Touch With The Bank.
Most credit card offers for bankruptcy debtors are mailed in and allow you to send your acceptance by mail as well. If possible, choose a credit card from a
Bank you already have or had an account with. That way, they'll already have you on file and you won't have to risk sending important information about
Yourself. Also try calling them to confirm your application, and to make sure the offer is valid.
Ask About Secured Cards.
Credit cards are generally unsecured, but your bank may be able to offer you a secured credit card instead. This will give them more protection and allow
Them to lower interest rates, even with your bankruptcy record. This usually involves a deposit or down payment which will be equivalent to your credit
Limit; that is, a deposit of $1,000 gives you a credit limit of $1,000. Usually, once you've stayed current for a given amount of time, you can switch to a
