Money games

Best Credit Card After Bankruptcy... How To Find One

Best Credit Card After Bankruptcy... How To Find One

Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for.

Let’s start by talking about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?

In case you don’t know the difference, a secured credit card is “secured” by a special savings account you establish with the credit card issuer which acts as collateral for your credit limit.

For example, you deposit $500 in a special savings account and then have a $500 credit limit. If you default, the credit card issuer simply takes the money in your special savings account.

Unsecured credit cards are just that – unsecured. Meaning the person fills out a credit application and, based on their credit report, income, etc. are approved for a certain credit limit. Of course, they could also be declined depending

on the credit card issuer’s guidelines.

So which is best? It depends on your credit history. However, if you apply for a secured credit card you have a higher chance of getting approved versus an unsecured credit card.

But be careful. Not all secured cards are created equal. And to make matters worse, there are tons of banks out there pushing secured credit cards!

So how do you find the best credit card after bankruptcy? Come up with a list of criteria that the secured card needs to meet in order for you to consider it. When I’m researching secured cards, I apply eight criteria. Not many meet these criteria so I’m able to narrow down the choices quickly.

What are the some of the eight criteria? For example, a low interest rate is important. While researching some secured credit cards I ran across one with an interest rate of 23.99% and another with an interest rate of only 9.25%.

This is just one of the criteria I use to find the best credit card after bankruptcy – and look at the potential savings! Over several years you could save hundreds or even thousands of dollars in interest depending on the balance you maintain.

Okay, here’s another criteria: application fees. Again, I found some secured credit cards that have no application fees and one that had a… are you ready for this… $120 application fee! Sadly, people have paid it!

Let me give you one more criteria you can use to find the best credit card after bankruptcy: You want to make sure the secured card issuer reports to all three credit bureaus. But you also want to make sure they report it a certain way.

I don’t have room here for all eight criteria, but hopefully this gives you an idea of some of the things you need to look at when it comes to finding the best credit card after bankruptcy.

By the way, don’t apply for too many credit cards at once. If you do, it can hurt your credit score. That’s why if you’re uncertain as to whether or not you’d be approved for an unsecured credit card it may be better to apply for a secured credit card.

Now you know some steps you can take toward finding the best credit card after bankruptcy!

Beware of Scams When Repairing Your Credit

Beware of Scams When Repairing Your Credit

If you are in bad credit situation and are anxious in looking for a solution to rebuild your credit, then you may be tempted to answer an advertisement from a company who can promise you that they can give you an entirely new credit identity; all your bad records will be wiped off and you will have clean credit record.

You can see this type of credit repair ads almost everywhere whether or not they are true, sometimes hard to be differentiated. But, you need to aware the true of repairing your bad credit, there are no shortcuts for building an AAA credit rating. It will take time and a lot of efforts from your part to successfully rebuild your credit.

Meanwhile, your must be caution about the credit repair scams who are looking for their prospects like you to fall into their trap. Don't let you be their victim. If you are looking for a credit repair services, you must take your time to search for a reputable credit repair company. Beware of a few signs of credit repair's scams describe below.

These companies will promise and even guaranteed your that your bad credit history will be erased in short period of time and your will have totally clean credit records. They normally charge high fee and need you to pay upfront fee.

There are companies who will offer you a new identify. What they do is to get you apply for a tax identification number, which has the same amount of digits as your social security number, and then use it whenever applying for credit. Your record will shows clean with the new tax identification number and you application of credit can be approved.

Beware, you action may send you to jail. Lying to the federal government about your intended uses for a federal ID number is a federal offense. You need to bare the responsibility of law offensive when you get caught.

Theses scams will pressure their prospect to sign up their plan by today because this special offer will expired tomorrow. They may use other similar tactics to urge you to put your signature into their contract. The contract will stated all the outrageous promises and of course, in return you will ask to pay for high upfront fee.

An honest & reputable credit repairing company will let you know you that your credit cannot be rebuilt overnight and they will never pressure you or trick you to sign a contract with them. In addition, they will make it clear to you, that if you do change your mind within three days of signing, you can cancel it without any obligation.

In actually fact, nobody can repair your credit except yourself. A reputable credit repairing company will be able to guide you to achieve you goal. The only way to successfully regain your good credit is thru you own efforts such as pay your bills on time, not extend your credit limits, and be careful not to apply for too many credit lines. Do all of these things on your own and you will soon find yourself with a great credit report!