Acquiring credit cards after bankruptcy is possible, but it is quite difficult comparing with the usual acquisition process. Getting over with bankruptcy is not an easy task.
Being in this situation is an experience of starting to build your finance credentials and rebuilding your credit score. In accomplishing this, you would have to open new accounts pertaining to credit.
Obtaining approval for credit cards after bankruptcy is hard; however, knowing how to do it will help you a lot.
Tips on Acquiring Credit Cards after Bankruptcy
Acquire a Secured Credit Card
In facilitating a secured credit card, you are supposed to open an account with the bank. The amount deposited to your bank account will be the credit limit of the secured credit card.
This facility will ensure that you will not default on your payment again. The benefit that you will obtain is to start rebuilding your credit standing all over again. There are better chances of being approved with a secured credit card.
Consider an Unsecured Loan Application
This can be a great option of acquiring credit cards after bankruptcy. Although it is not easy to get approved right away because unsecured credit card is based on a good credit history.
Get Credit Card through Credit Union
Using appropriate negotiation in explaining to the credit union your situation, there is a chance they will help you in getting a new credit card.
Your previous good relationship with them and a satisfactory record would provide you with positive results.
Find a Co-Signer
You can try to convince a family member, relative or a friend to co-sign a credit card application. Having a co-signer would increase your chances of being approved.
However, you should be careful in using your credit card once approved. This will ensure that you will not be falling in the same dilemma again, and lose the trust of your co-signer.
Choosing Wisely for the Best Credit Cards after Bankruptcy
Be careful in accepting credit card offers. Consider the following things before ever settling for one:
Interest Rates – Most banks and card companies are more than happy to accommodate your application. However, the interest rates may be quite high. The rate of interest varies between 8% up to 25%.
Application Fee – Never fail to look at the application fee. Many credit card companies charge over a $100 application, while others are free of charge. Settle for those without application free.
Credit Report – A crucial thing to consider in acquiring credit cards after bankruptcy is the reporting of the company to the credit bureaus. Remember that rebuilding the credit history is utmost reason why you are applying for new credit cards.
The excellent way to apply for credit cards after bankruptcy is by online application. There are many card companies that are in the internet to entertain your application for a credit card.
You have a great chance to search which of these companies are offering unsecured and secured credit cards that have favorable terms and conditions for consumers.