Find a Credit Card After Bankruptcy

After a bankruptcy, it is important that you re-establish your credit as quickly as possible. A bankruptcy is a fresh start, and it will be necessary to re-build your credit history using any means possible. One very good way to establish credit history is by obtaining a credit card. I know what you are thinking. How do I get approved for a credit card after I declared bankruptcy? Obtaining a credit card can difficult under these circumstances. However, there are plenty of lenders out there that are more than happy to give you a credit card. There are many things to look out for when applying for a credit card after you have declared bankruptcy. Let’s take a look at some of the steps you will need to take.

Lenders realize that the bankruptcy destroyed your credit rating. You will receive lots of credit card offers in the mail. Many of them will say “pre-approved”. Accept one of these offers. However, know the terms. Odds are, the interest rate on this card will be very high. There could be excessive late fees, annual fees, and monthly late fees. Try and choose a card without these fees. Using a card like this for a while will raise your credit rating. However, you have to make sure and stay on top of your payments, and do your best to avoid ever being late. One good piece of advice is to use it for one or two small purchases per month, and then pay off the entire balance. Over time this will raise your credit score.

Another type of card is a secured credit card. These types of cards require a down payment. Let’s say you put $300 down. This means you will have $300 in credit. Keep the account current for two years, and the deposit will come back to you. At this point, you will be able to increase your credit limit. The longer the account remains in good standing, the more it helps your credit score.

You can also contact your local bank or credit union. If you have dealt with them in the past, they may be willing to offer you a credit card at a lower interest rate. If you explain to them your situation, they might be willing to help. Ask for the lowest rate that you can possibly get.

If none of these things work, you can get a co-signer. If you have a friend, relative, or spouse with good credit, ask them to co-sign with you. This is a good way to get a lower interest rate on a card. The downfall is, if you fail to make a payment, they will contact the co-signer and try and get the money from them.

A bankruptcy is a painful thing. The best way to get it behind you is to restore your credit as quickly as possible. Be aware of exactly what you are getting into when signing up for a new card. Understand the terms and read the fine print. There are countless places to apply for a credit card online.

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Brock Timberman is a staff writer for Platinum Web Services.

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