Note: All Orchard Bank credit cards are now issued by Capital One.
There are some credit cards available for people who filed bankruptcy, you just need to know where to look and exercise a lot of patience. After bankruptcy, you may have a fresh start with your finances, but now you are a big risk to most lenders. This means your options will be fairly limited.
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Look for secured credit cards with companies that will report your information to the three credit bureaus, TransUnion, Equifax, and Experian. This will help you on the road to rebuilding your credit. Orchard Bank offers both Visa and MasterCard credit cards to people who have filed bankruptcy. You control your line of credit by applying with a deposit; your deposit will serve as the loan.
Capital One Secured MasterCard is also an option worth considering, especially since you can qualify for increases to your original line of credit over time. If you continue to meet your obligations, they can reward your progress by giving you a loan in addition to your deposit.
The MasterCard offered by First Premier Bank is a credit card for people with no credit history at all, so you should research this company as well. Unlike many major unsecured credit card companies, you may not have the option to transfer balances or receive rewards points, but you will be on your way to repairing the damage done by the bankruptcy.
According to the information found on Credit Card Bankruptcy.org, obtaining a secured credit card is one of the best ways to repair your credit, but you must remain focused and make every effort to pay your balance in full each month.
One of the reasons you filed bankruptcy may have been overextending. A secured credit card will keep you in tune with your finances and provide the balance you were missing.
How long does it take to repair bad credit?
It can take years to repair severely damaged credit, so it is best to start right away. Once you have received your discharge papers from the bankruptcy, you can begin working towards making positive changes.
Obtain a current copy of your credit report. You can log onto Annual Credit Report. Com and with just a few clicks, have access to your entire history. Use this information to begin your action plan.
You will need to review every negative entry that has affected your overall credit score. Remember, some can remain for up to 10 years due to the bankruptcy, so hopefully; the number is low. Once you have a clear idea of the number of vendors who have reported late payments or other derogatory information, this will give you a good idea of where to start.
Remember, you will need positive reports in your history to counter the negative. Each credit card you apply for will be another opportunity for you to prove you are financially responsible. As you continue to pay your credit card monthly payments, your credit card company will continue to gather this information.
How can I avoid credit card debt in the future?
Some tips to manage credit card debt in the future are to take a good look at where you went wrong originally. Do not duplicate the same mistakes. If for example, you shopped excessively and only made minimum payments, cut this out immediately.
Use your credit card wisely and spend only what you can easily repay in 30 days. This will keep your balance low and available credit limit high, a surefire way to raise your credit score.
You should also find a credit counselor who you can meet with on a quarterly basis at least. Their main duty is to monitor your spending habits, prepare budgets, and help you look for ways to use alternative methods of payment besides credit cards.
Make a list of wants versus needs. Each time you reach for your credit card, review the list, and decide if your purchase is wanted or needed. Chances are, the needs list is something you can incorporate into your budget rather than using the credit card.
During your lifetime, you may be faced with the tough decision of having to file bankruptcy; you may be facing a foreclosure or repossession or something much worse. The reality is bankruptcy is never an easy choice, but it can save you from losing many things you worked hard to obtain. Whatever your final decision, remember that filing for bankruptcy is not the end, it can be the beginning too.
Use the FREE credit card chaser to find credit cards to help you rebuild your credit after bankruptcy!
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