Post Bankruptcy Course
Many people think that it is very hard to get a credit card right after bankruptcy. This is not true. It will be difficult only if you don’t know the necessary steps that you need to take. You probably know already that being bankrupt practically ruins your credit standing. But this status is not permanent and there are things that you can do to fix your credit score fast.
Bankruptcy may appear in your credit report for up to ten years but this does not mean that you cannot apply for loans and credit cards before it is taken out. And you don’t even have to settle for loans and credit cards with predatory rates. The key is to follow proven techniques that when employed properly will have you enjoying the privileges of having a credit card even if you just came from bankruptcy.
Get a copy of your credit score and report
The first thing that you should do is if you want to get a post bankruptcy credit card is to obtain a copy of your credit report or credit rating. Copies of these documents are easy to obtain and they are given free of charge. Three agencies prepare credit reports, namely, Experian, Equifax and TransUnion. You should get copies from all three agencies because the report of one agency may be different from the report of the others. Once you have your credit report in your hands, you should review it for possible errors. Errors are common in credit reports because of various reasons. If you see some errors in your report, you should have it corrected immediately by the concerned agency. You can also ask negative entries to be removed. These include old debts, unpaid loans, etc.
Choose credit card well
In selecting a post bankruptcy credit card, you should avoid the so-called predatory cards that come with very high interest rates. There are cards that charge as much as 20% interest. These cards are easier to obtain than regular credit cards and they even come with attractive credit. But the high interest rates will just make life hard for you in the long run. Avoid the thinking that getting cards with predatory rates is your only chance to get a credit card again after your bankruptcy. Keep in mind that you are still recovering from a bankruptcy. Getting cards with predatory rates can put you in financial trouble once again so you must avoid it.
Do not fill out too many credit card applications
In their desire to get a credit card fast after bankruptcy, many individuals fill out too many credit card applications at once. What they don’t know is that these can further damage their already poor credit standing. This is because applying and opening several credit accounts at once sends can interpreted the wrong way by banks and other financial institutions. Instead of applying to several credit cards at once, focus on one card at a time. If you get rejected then move on to the next card.
Get a secured card
If you are really having a hard time getting a regular credit card then maybe you should apply instead for a “secured” credit card. A secured credit card is a card that is backed by savings from a bank account and thus is easier to obtain. The credit limit of a secured card is determined by the amount in your savings account. You may not have the credit limit that you want with a secured credit card but getting one is a good first step towards building your credit standing.
After you get your credit card
When you get a credit card then you should consider it as a second chance, a new lease in your financial life. You should take it as an opportunity to prove to creditors that you can be responsible with your money by paying your bills on time. To make sure that your payments are reported, you should leave around 20% of the limit when you are making payments. These actions may seem small but they can have a great impact on improving your credit standing.
As you can see, getting a post bankruptcy credit card is possible and you don’t even need to resort to drastic measures.