Getting approved for a credit card after bankruptcy does not prove easy. To start all over and build a new credit history, you need new credit accounts. Following these guidelines and suggestions can help you get a credit card after bankruptcy.
- You will receive a lot of offers from credit card companies. They know you need to start fresh, so they will offer easy credit. They do this all the time for people who go into bankruptcy because they think of them as potential clients. Keep in mind though that no rapid fix to your problem exists. If someone promises you to quickly fix your credit and repair your credit history, be suspicious. Avoid giving money to people whose promises sound too good to be true and instead choose the safe way.
- Don’t accept a pre-approved credit card offer blindfolded. You need to analyze the terms and conditions carefully before making a choice. Keep in mind that the rates on these types of credit cards typically range pretty high. You might also incur charges for all kinds of fees like annual fees or excessive late fees. Stay away from contracts that will charge too many suspicious fees.
- Perhaps you can get a credit card from your bank. If you have a good record with them and you explain the situation, they might approve a credit card for you. You will not get the best deal, but nevertheless try to negotiate a relatively low credit card rate. You can try the same thing with your credit union.
- You will find it very difficult to get approved for an unsecured credit card. A secure credit card offers a better solution for you. This means that if you give a $1000 down payment, you could get a $1000 limit for your credit card. You will have the option to switch to an unsecured account only after a period of time during which you make regular payments. This time period varies from six months to one even two years. At that time, you might even have the ability to get your down payment back. Make sure you can make the switch to an unsecured account in the future, as not all secured accounts have that option.
- Getting help from a person with good credit history proves also a good idea. Ask a friend or someone in your family to co-sign on your application for your credit card. This offers some measure of guarantee to the bank, and you might have the opportunity to negotiate a lower rate for the card. Keep in mind though that you now also have the responsibility for the other person’s credit history. If you don’t make payments on time, she will also be held accountable for the debt.
