If you would like to learn more about establishing after bankruptcy credit cards, then you will want to read this article. We will be discussing how both secured and unsecured credit cards can play a key roll in helping you restore your credit.
Secured Credit Cards
Secured credit cards are the first type of credit account that you will want to apply for after a bankruptcy. They will require that you place a deposit with the lender to collateralize the card. Once you have done this, you will be able to use the card just like any other credit card.
When shopping for a secured credit card, you want to make sure that the company you select is set up to report to the credit bureaus. Additionally, avoid any company that has exhoribiant fees that will account for a good portion of your credit line. You should look for a card that does not have an application fee and that has a reasonable annual fee.
Unsecured Credit Cards
Believe it or not, there are quite a few companies that offer unsecured after bankruptcy credit cards. The reason that these companies are willing to take a risk on you is that they know that you cannot file bankruptcy again for another ten years.
Two companies to consider are Orchard Bank and Capital One. Both have very agreessive underwriting guidelines and are used to working with clients with blemished credit. Don’t expect much leeway with a late payment though! Orchard Bank will charge you a $30 late fee if your payment is a single day late!
Capital One has a great “Credit Steps” program where you can increase your credit line by up to $500 by your 5th statement. All you have to do is use your card, don’t go over your credit line and make your payments on time.
