Credit card ratings can be a guide to people who claimed bankruptcy in applying for a new credit card.
Claiming bankruptcy frustrates many Americans especially during the time of economic crisis.
The dilemma of being declared as bankrupt includes facing the possibility of rejection for loans, credit cards and other financial services.
On the other hand, lenders including credit card issuers may understand that bankruptcy does not necessarily imply the true relationship of an individual with money. The reason is that most bankruptcies are results of adverse events happened to people that are beyond of their control such as incurring significant amount of payments arising from medical debts.
In addition, people who claimed bankruptcy can be considered less risky by lenders because of their inability of seeking another bankruptcy protection few months after their discharged. Besides, having a new credit card is a chance for them in rebuilding their financial history.
Cards with Credit Card Ratings Available for Consideration after Bankruptcy
Although many credit lenders left the industry because of the credit crunch, group of banks and other financial institutions are willing to deal with post-bankruptcy consumers.
According to the credit card ratings of various websites, five cards are chosen to be ideal products to provide opportunities to people in rebuilding their financial future.
- Secured Visa (Wells Fargo)Wells Fargo is known to be a dominant retail bank in the US. You can start with a minimum of $300 security deposit and $25 annual fee. With the bank’s periodic review of their secured accounts, you can have a chance in converting unsecured credit card and at the same time get back your deposit when you are able to manage the account well.
- Secured Credit Card (BankAmericard)Bank of America also took the effort to focus on retailing on personal services. The bank reinstated the option for a secured credit card available for consumers that have savings and checking accounts. The credit card ratings for the annual fee of this card are a bit higher than that of Wells Fargo, but have the same APR and features.
- Orchard Bank MasterCard and Visa CardMasterCard and Visa Card are attractive card possibilities for people from bankruptcy discharge. Even though these cards have relatively high interest rates and annual fees, they are the ones to turn to when other banks shunned credit card applications. Mostly, an unsecured card would have less than $60 of annual fees, but have no application fees and no additional service charges.
- Prepaid Card (Upside Visa)This card belongs to the latest group of reloadable prepaid cards with the intention to replace the traditional checking accounts. If you place a direct deposit from the employer, you can reduce the monthly service fee. The plus about this card is the inclusion of bill payment service.
- Debit Card (Green Dot)The Green Dot is commonly used in shopping at convenient stores and drug stores. The card replaces the conventional checking account. This debit card is reloadable and provides convenience to consumers who have problems with regular banking hours. Users usually find it more convenient to reload $5 to Green Dot than waiting in line for the next available teller.
According to credit card ratings, consumers should take note that although prepaid cards may carry MasterCard or Visa Card logo, these cards do not offer the same protection on purchases that credit cards provide.
They are not also reporting your purchasing habit to the credit bureaus, which means no effect on credit score.
The positive aspect would be on the opportunity in learning how to budget purchases with the reloadable card that will result in building new habits that would be helpful in the future.