Bankruptcy Credit Card

Secured Credit Cards

Re-establishing credit after bankruptcy can be frustrating, but secured credit cards can help. A secured credit card is one that is guaranteed by a deposit. Generally you deposit a sum such as $50 or $100, and the credit card company gives you a credit card with a low limit. Usually the limit is twice the amount of the deposit you have made. Customers who pay their bill on time each month can expect a credit line increase, usually within six to twelve months. If you don't pay the credit card on time, the deposit will be deducted from your balance, and you'll be billed for the remaining balance. These companies sometimes close your account for non-payment of the bill as well.

Stored Value Credit Cards

Stored value credit cards can also help you after you've filed for a bankruptcy. Credit cards that utilize stored money are used the same way as other credit cards. These types of accounts are similar to debit cards in the fact you can only charge the amount that you have deposited into these accounts. A credit card company that issues stored value cards will report your account to credit bureaus as open and paid on time as long as you don't go over the limit of your deposit.

Credit Card Search Businesses

A credit card search business may be able to help you after a bankruptcy. Credit card search companies usually offer to find a credit card company who will grant you credit for a fee. Unfortunately, many of these businesses are not legitimate. They won't refund your fee if they fail to find a company willing to give you a credit card, and then you have lost the fee. If you feel you can't get a credit card any other way, check out the credit card search business with the Better Business Bureau before paying the fee.

Bankruptcy and Your Credit Report

A bankruptcy can remain on your credit report for up to ten years. This gives you plenty of time to re-establish your credit and learn some good money management practices. The following are some tips to improve your credit score:

• Apply for one credit card at a time when re-establishing credit. Do not apply for more than two or three cards within a year.
• Always pay your bill on time. When possible, pay more than the minimum amount due.
• Add a written statement to your credit card report if you filed for bankruptcy due to medical bills, disability or a divorce. The written statement explains why a bankruptcy was filed. Lenders are often more willing to approve a credit application when they know a bankruptcy wasn't due to poor money management.

Re-establishing Credit

A bankruptcy and credit card histories are shown on your credit report. A credit report, however, is only part of your entire credit history. Other things you do can affect how credit lenders view your credit worthiness. Things that can improve your general credit history include:

• Pay your rent or mortgage on time each month.
• Pay utility bills in a timely manner.
• Avoid short term loans from businesses that cash your check on payday.
• Open a checking or savings account and avoid overdrafts.
• Ask a relative to co-sign a loan or credit card with you.

Conclusion

Remember, it is possible to re-establish your credit after a bankruptcy. By following some basic money management practices, you can obtain credit cards again. Most importantly, paying your credit card bills, as well as other financial obligations on time, will improve your credit history.

• What is a Good Credit Score
• American Express Black Card
• Sears Credit Card
• What Is APR
• Home Depot Credit Card

• PayPal Credit Card
• Orchard Bank Credit Card
• Bad Credit Credit Cards
• Using Line of Credit to Pay Off Credit Card Debt
• Prepaid Debit Card

• Credit Card Debt Elimination
• Holiday Credit Use
• Do you know your current credit score?
• What's the most important credit card perk?