Going bankrupt can be one of the hardest challenges you might ever have to face in life.

The worse thing is that you can get declined by lenders and banks when you try to apply for a loan that is supposed to help you get out of bankruptcy.

Despite this fact, there are still many other companies that offer their services and resources. There are a lot of them who advertise that getting a credit card after bankruptcy is the best solution.

Now, this can be tough knowing that you will be more possibly declined by them because of your poor credit history. But, of course, like all other things, there is still hope.

This has become a very profitable business recently that is why getting a credit card has become a little easier.

The first thing to do is find the best credit card. This is much easier done over the Internet – with just a few clicks, you can easily compare credit card features from different companies.

Select the one which best fit your needs and one which you can easily pay for each month so you do not go into more debts.

You should remember some important points when getting a credit card after bankruptcy. Check out how much its interest rates are and, most especially, how much the application fees cost.

You also have to make sure that the card issuer would give out reports to the three major crediting bureaus.

If you plan to repair your credit history, you have to be sure that all your efforts in paying on time do not go to a waste.

Using a credit card after bankruptcy is rather tempting. After you have gone for a few weeks or days with only a little spare cash, one cannot help fighting the temptation of buying many things which are most of the time unnecessary.

Be sure that you keep away from these situations. Remember that you applied for a credit card to help get you out from your financial problems, not add to it.

When applying for a credit card, you also have an option between secured and unsecured credit cards. The decision is really just up to you but you have to weigh in the advantages and disadvantages before getting any type.

If you follow these simple guidelines, you should be able to get the best credit card after bankruptcy. And when you do, you are sure to get more savings and get out of your financial mess.

If you have a recently discharged bankruptcy and want to begin reestablishing your credit then you will want to read on. We will be looking at everything you need to know about getting credit cards after a bankruptcy.

Make sure your credit report is accurate

You may think that reviewing your credit right after a bankruptcy discharge is not that important. This is not the case! Creditors routinely misreport accounts that have been included in a bankruptcy. Instead of reporting them as included in the bankruptcy and discharged, they report them as being open and currently past due. This lowers your FICO score and makes it hard to get new credit.

You will need to dispute any accounts that are not reporting accurately with each of the three major credit bureaus. Once this is corrected, it’s time to start shopping!

Shop wisely

If your bankruptcy discharge is recent, you will want to shop for a secured credit card. If you are at least six months out from your bankruptcy discharge, you may want to consider applying for an unsecured card for people with bad credit. If you decide to try to get an unsecured credit card, you may want to look for a company that offers both secured and unsecured cards. That way if you can’t get an unsecured card, you can still get the secured card.

Make sure you select a card that does not carry exorbitant fees. Don’t fall into the trap of assuming that you should be happy than anyone will do business with you and accepting the first card you find. There are many vulture companies out there that charge fees that are almost equal to your entire credit line. This is not what you want! Look for a card that does not have an application fee and whose annual fee is $45 or less.

It is critical that you make sure that any credit card that you select reports to all three of the credit bureaus. Most credit card companies report to all credit bureaus, but you will want to verify this up front!

Credit cards that offer an automatic credit line increase after a set number of payments are also something you should look for. These type of programs can help you build up your credit history without having to remember to call and request credit line increases.

The question that bothers many people after they have been declared bankrupt is whether anyone will ever trust them with their goods and services. It is possible to obtain credit after bankruptcy and gain the confidence of former as well as potential creditors by following a few simple steps. It may not be easy, but it is possible.

It begins by believing in your self and knowing that no situation is permanent no matter how bad it may look. It is true that bankruptcy robs you off your financial credibility, but remember that there is no situation that is permanent. Rebuilding your credit is determined by the small little things that you are going to do from now hence forth.

You can begin by making sure that you pay your bills on time without failure. No matter how small the amount seems, be sure to pay it on time and do not let it accumulate. Remember that this is probably how you ended up being bankrupt in the first place.

One simple way is to make your budget and stick to it through thick and thin. Operate on a cash basis and if possible, make it your policy to ‘pay cash today, for credit come tomorrow.’ If you must really get a credit card, make sure it is insured. This way, you will be out of trouble the next time you are unable to pay your debts. Better be safe than sorry. This way you can be assured of getting credit after bankruptcy.

Rebuilding credit after bankruptcy could prove to be be quite a challenge for some people, especially since most of them have already lost the trust of their creditors. The ability to rebuild your credit worth and trust will greatly be determined by the little actions that we sometimes think do not count. For example, make it your habit to pay your monthly bill on time no matter how small.

Do not let your bills accumulate over a long period of time since it may lead to another harsh reality of bankruptcy and the the resultant insolvency. If you still feel that you will still require a credit card, ensure that it is insured. This kind of card will be exempted from bankruptcy.

Other things that you should do include paying in advance for for your insured or secured cards. This will earn you points on your credit ranking and furthermore you will avoid the last minute rash that is otherwise avoidable. You should also refrain from co-signing for a loan with a person who may be forced to pay up on your behalf, or whom you may be forced to pay up for in case of insolvency.

More important, you can open up a savings account and take good care of it. Future potential creditors may take a look at it and consider you for credit or lending. Work out a budget that you can live on and by all means do not spend your money before you have earned it!

If you have had to declare bankruptcy for any reason, it is easy to get overwhelmed by the sheer volume of things to consider. But, getting a credit card after bankruptcy is one of the best ways to begin rebuilding your credit score, if you are careful and selective about choosing the right card and provider.

Let’s face it; a bankruptcy is a huge blow to your credit-worthiness. However, a sober assessment of your situation, followed by learning from the mistakes that may have led to the bankruptcy, is key to getting your financial house back in order by obtaining lines of credit that you can use to rebuild your credit score.

Get Credit Reports From All 3 Major Credit Bureaus

The first step to finding the best rates on a credit card after bankruptcy is getting a copy of your credit report from each credit bureau. Lenders rely on the credit reports from 3 main credit agencies to determine your credit-worthiness, and the rates that you will pay on borrowed money. These agencies are: Experian, Equifax, and TransUnion.

After you receive your reports, carefully examine them for inaccuracies that can continue to undermine your efforts to re-establish credit. If you discover claims that are false, contact each agency and:

Secured vs. Unsecured Credit Cards, Which is Best For Your Situation?

There is no stock answer that will work for everyone on this. The particulars of each person’s situation will dictate which option will work best for them but here are some facts to inform your decision:

Secured Credit Cards

Secured credit cards are cards that are issued from banks or credit unions that guarantee a specific line of credit as long as you have a corresponding balance in your account that they can use as collateral if you default on a payment. For example, if you have a $500 line of credit, you must maintain a balance of $500 in your account.

Because your debt is secured by a predetermined amount, you can generally get a more favorable rate of interest from these lenders. But, it is recommended that you pay the full balance each month to keep your account in good standing. Look for a card that will offer the option of becoming unsecured after a period of responsible use.

Unsecured Credit Cards

Unsecured credit cards are easily available from all sorts of lenders and there lies the rub, easy availability. These cards offer huge come-ons about increased lines of credit without the need to maintain a balance, but you run the risk of repeating some of the same mistakes that may have contributed to your bankruptcy in the first place.

In fact, there are many credit card outfits out there that specifically target people that have filed for bankruptcy and take advantage of this by offering egregiously high interest rates. Also, they further leverage their position by nickel and diming you with all sorts of application fees meant to prey on your financial vulnerability.

Whichever type of credit card that you choose, make sure that you explore all of your options, and read the fine print before you sign the agreement. There may be hidden fees and costs that will hinder, not help, you in your quest to rebuild your credit rating. Also, make sure that you do not apply for more than 1 or 2 different credit cards. Each rejection will negatively affect your credit rating, and defeat the purpose of getting a credit card in the first place.

Summary

Getting a credit card after bankruptcy to start rebuilding your credit rating is a marathon, not a sprint. You must carefully plan when and how to use your credit card so that it becomes an asset instead of a liability.

Make sure that you pay off the full balance each month, well before the due date, and use your credit card only when absolutely necessary. After every 6 months of responsible credit management, call your lender and ask for a lower interest rate. They might not honor your request each time, but they will like the fact that you are actively pursuing the means to manage your credit more effectively.

The next time you reach for your wallet and don’t have the cash on hand to make a purchase, ask yourself, “Is this a want or a need?” If the answer is the former, put your wallet away and congratulate yourself for making another step on the long road of credit rating recovery.