Credit cards after bankruptcy
If you are the one who have just filed for the bankruptcy late in the last year or just within the past few months, definitely possibilities are very less for you to come up from the adverse effect of the bankruptcy. Although getting the standard credit card just after you have been tainted with the bankruptcy is quite harder, it’s not exactly impossible.
Now many financial institutions and banks understand the people who want to rebuild their credit history and their lives. They are even ready to offer the credit cards after bankruptcy have been filed on you. These cards are known as secured credit cards.
These kinds of cards are getting very popular among the people who want to rebuild their credit history. So if you are suffering from the bad credit or bankruptcy effects undoubtedly secured credit cards will be the best option for you.
Rebuild Your credit with the Credit Building Credit Cards
So how secured credit cards can help you to rebuild your credit history? Before answering this question let’s explore on the basics of secured credit cards first.
These secured credit cards works much in the same way as standard credit cards except you are going to pay some deposit amount as a collateral. This is how the credit card companies provide you the credit card just after your bankruptcy. Your credit line will be in the direct propositional with your deposit.
Every month you will be getting the monthly bill. If you defaulted in your payment for minimum of 5 or 6 months the bank will use your deposit amount to repay your outstanding bill. This duration may change from bank to bank. But don’t let your creditor to do this to you. Remember your ultimate aim for getting these Credit Building Credit Cards is to improve your credit score. When you make the timely payment at full every month , your this credit behavior will be reported to all 3 credit bureaus this is how many people have succeeded with the credit rebuilding.
Okay. Now let’s see how to apply for this secured card.
In order to obtain the secured credit card you will be asked to open either a saving account or checking account in that particular branch. You are going to deposit the money in this account as collateral.
As we have stated earlier unlike other standard credit cards company will use your collateral amount to fix the credit limit that you can enjoy with your purchasing. So if you want to have some high limit credit line you will need to pay high amount as a deposit. Regardless of your deposit some companies will fix your credit limit only upto 50 to 75% of your deposit amount.
Given below are some names of banks which are well known for providing Credit card after bankruptcy
First PREMIER Bank Gold MasterCard
First PREMIER Classic Card
Orchard Bank Classic Master cards
Centennial Gold MasterCard
Centennial Visa or MasterCard
Orchard Bank Low APR MasterCards
And many more..
If you make timely payments and shows your loyalty to them chances are there to get high limits on your card and a transition from the secured credit cards to unsecured credit cards. When your creditor believes your credit worthiness by promoting your card they will return your deposit money entirely.
If you close the account with good condition they will return your deposit amount. Almost all credit card companies update your credit behavior to the credit bureaus but few companies will not do this. Sign up with such companies will be of no use to you.