The Best Type of Credit Card to Get after Bankruptcy
Contributed by Lisa Marie
There are so many credit cards out there, and all different types. Here's a quick overview of the best types of credit card after you have declared bankruptcy.
After you've filed for bankruptcy protection from your creditors, you need to start rebuilding your credit, credit cards being the best and easiest option for you.
You shouldn't be expecting an offer from American Express anytime soon, that's for sure. Your credit report is cleared from all previously owed debt, but now you have no credit at all. The fact is, you need credit. Now you need to go off and start rebuilding it.
Secured credit cards are a best bet and great option for you!
Here's how they work. You send money into a credit card company which they in turn deposit into an interest bearing savings account in you name. You can start these with as little as $100.00 out of your pocket. The creditor then gives you a credit line that is equal to your savings account balance. As long as you pay your bill on time, you will not have a problem. If you default on your bill, the creditor will take the balanced owed out of your savings account to pay your bill, thus lowering your available credit.
Once you have established good credit with this card (paying your bills on time or even in full), the creditor will review your account and could increase your credit line to exceed what your balance is in your savings account held by them. Now you have a partially secured credit card, which looks much better on your credit report than a completely secured one.
