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How to Get a Credit Card After Bankruptcy
It Is Possible
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Are you wondering how to get a credit card after bankruptcy?
Maybe you've made financial mistakes. Maybe you've lost your job or had sudden expenses to pay.
Or maybe due to unforeseen medical expenses, your credit is now ruined.
Whatever the case, you had decided that declaring bankruptcy was in your best interest.
This is a stigma in our society, and you may assume that there is no hope of recovery from this, but that is not entirely true.
You can still reestablish credit and get your finances back together even after this financial disaster. You can even get a credit card after you file for bankruptcy.
The most important thing is to talk with your bank who will have financial advisors to help you.
It may be tempting to sign up for one of those credit cards advertised on television or the internet, but those could do more harm than good.
They usually have an incredibly high interest rate.
Moreover, unfortunately the companies are hoping that you will fail. This is how they will make money.
Talk with your bank and explain the situation to your financial advisor.
He or she will be able to give you the information necessary to rebuild your credit and get a credit card after bankruptcy.
You will want to check your credit report. When you declare bankruptcy, your slate is supposed to be wiped clean.
However, this is not always the case.
Some companies you owe money to may not know that you have declared bankruptcy. They may still have your account open, and this
could still be affecting your credit.
Also, you might be a victim of fraud. There could be accounts open that you have no idea about.
Looking at your credit report can verify that the information is accurate to date.
Once you have this information, you can discuss with your bank on getting a credit card after bankruptcy.
Most banks offer both a secured
and unsecured credit card.
The secured credit card is your best bet under these circumstances.
This means that you can never go over the spending limit. Often times there will even be a limit set for the day.
If you wanted to make a purchase beyond that amount, all you would have to do is contact the bank and let them know at least 24 hours in advance.
You can still get everything you need with a secured credit card.
It simply guarantees that you do not go over the limit and it’s a great way to rebuild your credit.
However, the unsecured credit card may be a little more difficult to manage as it will allow you to go over the limit.
More importantly, many times you will not know that you have gone over the limit until the end of the month. This type of card needs to be watched carefully. It also tends to have a much higher interest rate.
Your interest rate is going to be high after declaring bankruptcy anyway. You would want to keep it as low as possible.
Therefore, a secured credit card with your bank is your best bet for getting a credit card after bankruptcy.
Your financial advisor will work with you to help you get your finances back on track.
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