If you are bankrupt, there are many things that you need to consider. From managing your credit limit to apply for new cards, it takes decent time and efforts to tackle the case. Coming to cards, getting credit cards after bankruptcy can prove to be a beneficial decision. But how do you get one?
Here are three helpful tips that will guide you when rebuilding credit after bankruptcy using credit cards.
- Don’t Choose the First Credit Card You’re Offered.
Credit departments not only accumulate and store your credit data; they additionally pitch it to credit card organizations and other money related authorities. In this way, once the news of your bankruptcy is released and your credit report has changed, hope to get a surge of pre-approval offers from Visa organizations. Some of these offers won’t be too awful, but rather others can be out and out savage.
For instance, some may offer unsecured Mastercards after insolvency. These cards don’t require a security store, yet you may pay a continuous yearly charge of up to $99. Likewise, you aren’t entitled for a grace period between your announcement date and due date, which is standard for all big players of MasterCards.
Regardless of whether the main offer you see is a decent one, there’s no assurance you’ll get affirmed. Some Mastercard organizations have strict rules against supporting an application for people who’ve suffered bankruptcy. Along these lines, twofold check with the organization before applying for post bankruptcy credit cards.
- Opt for Secured Cards as Your First Choice
Banks that offer unsecured Mastercards after insolvency compensate for the loss suffered with high charges and interest rates, also not-so-friendly terms and conditions.
A secured credit card works like a regular Visa. The point of difference is the security store, which is typically equivalent to your coveted credit limit. This store goes about as insurance in case you default on your installments.
Setting up a security store won’t be perfect, particularly in case you’re attempting to bring home the bacon. Yet, over the long term, it merits keeping away from a ruthless item.
- Choose Credit Cards With Decent Features
It will be hard to work with banks after bankruptcy. Furthermore, for those that will work with you, the terms will be not as much as sufficient and favorable. So, not all post bankruptcy credit cards are horrible. Also, some offer highlights that adversary those of much better Mastercards.
The more features you get, the better option it is for you.
Lastly, dealing with credit repair after bankruptcy isn’t simple and it might take up to a year to be offered and affirmed for a Mastercard after release. Make sure you do not commit any error that may ruin your reputation among creditors and banks. Before getting a credit card, know your choices with secured and unsecured cards, and decide if you are prepared to oversee debt capably.