Credit Cards After Bankruptcy

If you have a recently discharged bankruptcy, you have probably begun to think about reestablishing your credit. One of the easiest ways to do this is to get an after bankruptcy credit card. We will look at the different types of credit cards that you might select to help you with your credit restoration efforts.

Secured Credit Card

Secured credit cards are the easiest type of card to get because, as the name implies, they are secured by a deposit that you place with the lender. Approval is based on your deposit rather than your credit. For this reason, a secured credit card is also called a guaranteed credit card. You should look for a card with reasonable fees that reports to all three credit bureaus.

Merchandise Cards

Merchandise cards are commonly overlooked in the world of credit repair. For those who are not tempted to overspend or buy junk they do not need, they can be a good tool. Merchandise cards are credit cards that allow you to shop at a specific website or catalog. Make sure you choose a company that reports to the credit bureaus. Just be careful that you shop smart. Some of these type cards offer products that are grossly overpriced.

Unsecured cards for people with bad credit

If your bankruptcy has been discharged for at least six months, chances are you can get an unsecured credit card. What you want to do is look for cards that are specifically for people with bad credit. Three companies that come to mind are Orchard Bank, Capital One and First Premier Bank.

Department store cards

Like merchandise cards, department stores are generally very relaxed with their underwriting guidelines. Why? Since their ultimate goal is to sell you products! You just need to be careful that you don’t overspend. Do not go buy things that you do not’t need. But, if you have the discipline to stay within what you can afford to pay off each month, this can be a great way to establish credit. Gas Cards You are going to spend money on gas anyway, so getting a gas card can be a good way to build up your credit history. Like department store cards and merchandise cards, gas cards generally have very relaxed underwriting guidelines. The gas companies know that if they issue you a card, chances are you are going to choose to buy gas from them!

The key to success in using credit cards to reestablish your credit is to not get in too deep. If you think that you can’t handle it, stay away! You don’t want to end up right back in the same situation of not being able to handle your bills!

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