after bankruptcy credit cards
There are credit cards that rebuild your credit back up after bankruptcy. They’re easy to apply for. Most of these have a wide range of deposit levels and a liberal, easy, and fast application process. For many people, their credit score has a major impact on their life.
It can decide where you live, what car you drive, and even if you can get a particular job. Bad credit can make life more difficult. But there are things you can do to improve your credit score. Secured credit cards are one way to help rebuild your credit score while still maintaining the lifestyle you want. Here is how it works and how it can help you.
A secured credit card is a type of credit card that requires a cash deposit as collateral against the outstanding balance of the account. The cash deposit is the security on the credit card account. The credit limit on the card will be the same as the deposit. If the card requires a $200 deposit, your credit will be $200.
The limit will rise as the user shows responsibility by making payments on time.
First, the approval process is easier than traditional cards and you don’t have to have perfect credit. They may even approve you with bad credit, no credit, etc. Second, you can graduate to an unsecured card in the future and third, a secured credit card helps build credit because it reports to the major credit bureaus.
Some credit cards allow a larger deposit than others. Typically, the deposits are higher on a secured credit card, because the lenders want to ensure they can recover their money if there is a default on the account. This is actually a good thing, since it allows the user to start out with a higher limit.
The interest rates charged on secured credit cards may be higher than those of unsecured cards, or bad credit cards (meaning cards for those with a poor credit score). The fees charged on bad credit cards are high, as much as 26%. One way to avoid excess interest fees is to pay off your balance at the end of every month. They only charge you interest on the outstanding balance.
Using a secured card after bankruptcy is easy. All you need to do is to apply for a card and pay your deposit. When you’ve made your minimum required security deposit, your account will be opened and you can use the card as you like. Kiss bad credit goodbye and start on the path to rebuilding your credit score.
To build up your credit score, use the card as you would any other credit card. Make small purchases and pay them off quickly. You can also use them to pay your phone, internet, or cable bill by using the auto-pay feature and setting the card as the payment method. That way, you know you won’t miss a bill and can pay off the balance at the end of the month.
While secured credit cards may not be the best for everyone, they can certainly help improve your credit score if you know how to use them. Bad credit can keep you from enjoying things that are available to everyone. Rebuilding your credit will put you back on the path to enjoying life.
Doing your homework and research is key to finding the best card for your circumstances. Below, you will find seven card options for you to do further research. This will get you started on the way to repairing your credit.
Your credit score is based on several factors, including your payment history, how much debt you have compared to your available credit, and how long you have had credit accounts open. A secured card will help improve your score by increasing the length of your credit history.
If you are starting with a very low score, it may take time to see an improvement. But make sure that you use the card responsibly in order to get the most benefit from it.
A secured credit card can help you to build or rebuild your credit history. This is one of the most important benefits of using a secured card.
A good way to improve your chances of being approved for a regular unsecured card is to use your secured card responsibly for at least six months. Then you can begin the process of transferring an existing line of credit or opening a new account with another lender.
Doing this will not only benefit you by helping rebuild your score, but it could also help improve your chances of getting approved for future unsecured accounts in general because lenders see that you are capable and responsible when handling credit cards.
Another way that using a secured card can boost your credit score is by increasing your available credit limits by adding more money to them through deposits. The reason why having access to higher amounts of available funds boosts scores has to do with the percentage rate ratio (also known as utilization) calculation used in determining one’s financial worthiness.
Utilization is how much of your available credit you are using at any given time. The lower the percentage, the better it looks to lenders because they see that you are not overextending yourself by spending more than what’s available in your accounts.
Having access to higher amounts of funds can also help improve your score if used responsibly over a long period of time. It may take six months before seeing an improvement but do be aware that there will always be some degree of risk when applying for new lines or credit cards – even secured ones. So, use them wisely and pay off balances monthly!
Credit One has an annual fee of up to $99. This could be a good card to have for an emergency. You will initially have a $300 credit limit but are if you are looking for an unsecured card, this one is worth considering. Interest rates, however, will be more than 20%.
This is number one for those with bankruptcy and low FICO scores. There’s no annual fee. There is a starter deposit required between $49 and $200. When you make the minimum deposit required, you’ll start with a $200 balance.
You can double that by depositing more funds prior to your account opening. Access your account online day or night. It’s accepted everywhere Visa and MasterCard are. They report to bureaus so they build your score each time you pay on time.
With this card, there is a $200 minimum security deposit. You can enjoy a flexible billing date for convenience. Monitor your score online free and your account payments and information. You can also do so online or by phone. There are no annual fees and they report to bureaus. It has the standard APR of 23.99%
The first benefit is important to most people, and that’s a flexible billing date. If you are living paycheck to paycheck as most people that have a low score, then you’ll appreciate this feature. They are one of the few card companies that will offer that.
After declaring bankruptcy, a secured card is a good way to start rebuilding your credit. Applied Bank Secured Visa is a good one. Interest rates are lower than you might expect, currently, at 9.99%. Your credit limit will be whatever you fund the card with. They require $200-$1000 to start. There is a $48 annual fee.
Applied Bank will accept a low credit score. In fact, they will not even run a credit report. In addition, they do report to the three major credit bureaus, so this is an excellent option for building your credit.
Discover It is probably one of the best secured cards you can get. There is no annual fee. They need a $200 deposit which you must send with your application. If, for some reason, you are not approved, it will be returned to you. There are two great benefits to Discover It.
The first one, already mentioned, is $0 annual fee. Second, this is a rewards card which are rare among secured cards. They offer 2% cash back on the first $1000 that you spend on dining and gas. Not only that, but they will literally match your rewards the first year, doubling your reward amount. Consider the Discover It card if you have declared bankruptcy.
No credit check at all for this card. For this reason, it’s one of the best cards for your needs. You can start at $200 for the deposit and up depending on what you want your line of spending to be. Rebuild your score. Start seeing a score earned within 6 months. View the cardholder agreement online before you commit.
This company makes it easy for acceptance. Not only is there no FICO score minimum needed, anyone can come on board. FICO score is earned in under a year. It has ample support on social media and 24/7 customer service support by phone and online. Just watch to see what has a fee attached and use the more suitable option.
This card is also one of the best for the after bankruptcy rebuild based on several factors rarely seen. First, it’s easy to get. There’s no minimum score required. It fixes the interest rate at 9.99%. There’s no processing or application fees, so no wasted money. There’s an easy application process. You can choose a deposit range of between $2,000 and $5,000.
It’s one of the top cards for the post-bankruptcy rebuild. The interest rate is almost unheard of for a bankruptcy card at 9.99%. The spending limit is also rare for this type of card at up to $5,000. You can do a lot more with this card than most others and not pay an interest rate 3 times higher.
First Progress card company has two cards at different levels to choose from. The first one is First Progress, Platinum Prestige. No FICO score minimum or complicated application system. Reports to all bureaus and is $200 to $2000 range of deposit.
It’s easy and fast to get approved for and is a great card for after bankruptcy. This card can be used for rental cars and hotels, no issue. It’s good wherever MasterCard is accepted.
The second in the First Progress line is the Platinum Elite. No history or score needed. Deposit is also between $200 and $2000. Deposit is refundable if your card is paid in full. There are other cards this company offers with similar benefits. You can check them out online at the website. But, these two are the best in post-bankruptcy offers.
The key benefits to these cards are they have a wide spending range to begin with. You can rebuild your credit and it’s seamless to apply. They can be used for most of the major purchases in your life. There’s no FICO check to get started so it’s a quick application.
This card is up there with the best in secured line programs. A fast application process and there’s no extra security deposit for spending line increases. Reports to all three bureaus. Flexible spending line up to $3,000. Best several funding choices for deposit and monthly payments. Accepted worldwide.
The three key benefits of this company are its $3,000 limits. Your ability to increase your spending limit comes with a promise of it being unsecured so no money wasted. Finally, you can build your score organically with all 3 bureaus. This credit card company is a decent one to consider if you have declared bankruptcy in the past.
These options are not the only ones, but they are the top picks for those with bankruptcy issues. A card that’s for low scores is not necessarily good for this issue. You’ll want to look for a card for the ability to build a score as fast as possible.
Once there is a discharge of your case, you’ll want a card that reports to all 3 bureaus. There’s always a delay after discharge in wiping your credit report clean. The best thing you can do is have a revolving line of credit that reports positive results in 6 months or less.
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