- 1). Apply for a secured credit card. The best post-bankruptcy credit card is attached to your credit or savings account. A secured credit card payment is deducted directly from your bank account if you cannot pay what you owe the bank. If you make prompt payments, your banking institution may convert your credit card status from unsecured to secured.
- 2). Get bankruptcy credit cards with the lowest fees and interest rate. Some smaller lenders or internet-only banks offer bankruptcy credit cards with for consumers with bad credit. Shop around and peruse the internet for credit terms that will help you avoid large interest charges. Remember: there is a huge difference in your monthly payment if your bankruptcy credit card has an interest rate of 9.99% and 29% compounded daily.
- 3). Examine the credit scoring and application closely. Before you apply for a post-bankruptcy credit card consider the following criteria: 1) Ask if the banking institution reports to all three credit agencies. 2) Determine the amount of the application fees. (Credit card application fees can vary from $35 up to $150 dollars or more for unsecured credit cards.) 3) Consider any yearly renewal fees for access to the unsecured credit card.
- 4). Apply for only one credit card after bankruptcy. It may be tempting to apply for many offers after clearing your debts, but you will lower your credit score with multiple credit checks and open lines of credit after a bankruptcy.
- 5). Pay your monthly credit card payment on time. In troubled times it is tempting to skip a credit card payment or two. But skipping the payment can help you incur large fees and an increase in interest rates.
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