Skip to main content

Best Credit Card After Bankruptcy - How to Find One

Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for.

Let’s start by talking about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?

In case you don’t know the difference, a secured credit card is “secured” by a special savings account you establish with the credit card issuer which acts as collateral for your credit limit.

For example, you deposit $500 in a special savings account and then have a $500 credit limit. If you default, the credit card issuer simply takes the money in your special savings account.

Unsecured credit cards are just that – unsecured. Meaning the person fills out a credit application and, based on their credit report, income, etc. are approved for a certain credit limit. Of course, they could also be declined depending on the credit card issuer’s guidelines.

So which is best? It depends on your credit history. However, if you apply for a secured credit card you have a higher chance of getting approved versus an unsecured credit card.

But be careful. Not all secured cards are created equal. And to make matters worse, there are tons of banks out there pushing secured credit cards!

So how do you find the best credit card after bankruptcy? Come up with a list of criteria that the secured card needs to meet in order for you to consider it. When I’m researching secured cards, I apply eight criteria. Not many meet these criteria so I’m able to narrow down the choices quickly.

What are the some of the eight criteria? For example, a low interest rate is important. While researching some secured credit cards I ran across one with an interest rate of 23.99% and another with an interest rate of only 9.25%.

This is just one of the criteria I use to find the best credit card after bankruptcy – and look at the potential savings! Over several years you could save hundreds or even thousands of dollars in interest depending on the balance you maintain.

Okay, here’s another criteria: application fees. Again, I found some secured credit cards that have no application fees and one that had a… are you ready for this… $120 application fee! Sadly, people have paid it!

Let me give you one more criteria you can use to find the best credit card after bankruptcy: You want to make sure the secured card issuer reports to all three credit bureaus. But you also want to make sure they report it a certain way.

I don’t have room here for all eight criteria, but hopefully this gives you an idea of some of the things you need to look at when it comes to finding the best credit card after bankruptcy.

By the way, don’t apply for too many credit cards at once. If you do, it can hurt your credit score. That’s why if you’re uncertain as to whether or not you’d be approved for an unsecured credit card it may be better to apply for a secured credit card.

Now you know some steps you can take toward finding the best credit card after bankruptcy!


Copyright (c) 2006 Innovative Solutions Publishing, Inc. All rights reserved.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

Comments

Popular posts from this blog

Remote Virus Removal and Support

Users desiring more PC security will benefit from the additional services toinstall Norton software andinstall Norton antivirus supportdue to Symantec's new acquisitions, according to its recent releases. Companies providingantivirus support for users toactivate McAfee, providesupport for McAfeeor even todownload McAfee antiviruswill also become more valuable as a result of these developments:
 By Alina Wilson
How many times you have faced experience with virus attack on your computer. There are many kinds of viruses available in the computer field like Malware, Spyware, Trojans and many more. A virus is a unwanted program that runs on your computer without the permission of the users. A virus attack may leads to the improper function and decrease in performance of the computer. Many organizations has launched different antivirus program that avoids computer from the virus attacks.
There are some popular antivirus programs like the following:  1. Mcafee  2. AVG  3. Norton  4. Avir…

Inevitable Considerations to Make in Online Casinos Bonus Terms

Reference item on deals like Sun Palace Casino bonus codes, such as the Silver Oak Casino Bonus Codes available online:
By Tocab Jackson
The desire of every gambler is to make as much money as possible. This means that he has to choose a casino that offers the best in terms of bonuses as well as convenience. When looking for reliable online casinos, there are a number of considerations that one has to make. In addition to looking at the variety of games offered and the platform on which the games are played, the players are advised to look at the bonuses. There are a number of bonus terms that one needs to look for before enrolling to a casino.
Amount to deposit
To start playing for money, it is imperative that the player deposits a certain amount of money. This is done to activate the bonus accounts. It is therefore very important that a player counters the amount that is supposed to be deposited for one to transfer credits from the bonus account to the real account. In most cases, th…

BestCash Back Credit Cards - Earn 5% Cash Back Automatically

With so many scams out there and businesses trying to pull the wool over consumer's eyes, it seems impossible to believe that a credit card would really offer to pay 5% cash back just for making purchases with the card. Nonetheless, it is true. Several of the best cash back credit cards are really giving their customers 5% cash back rewards - and you just might be able to take advantage of these special deals.

Beating the Competition

With so many credit cards out there, credit card companies are in a bind to find a way to draw more customers in. One of the answers they have come up with is to offer cash back credit cards. With these credit cards, you earn money back for every purchase you make. As cash back credit cards rise in popularity, credit card companies are once again at the drawing table looking for a way to bring customers their way. All of this fierce battling is perfect for the consumer, who can take advantage of the resulting deals.

One of these great deals is the …