Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for.
Let’s start talking about secured and unsecured credit cards. When it comes to apply for a credit card after bankruptcy a question that many people seem to have is: Should I apply for a credit card safe or unsafe with a credit card?
In case you do not know the difference, a secured credit card is “guaranteed” by a special savings account established with the credit card issuer that serves as collateral for your credit limit.
For example, you deposit $ 500 into a savings account and then have a credit limit of $ 500. If default, the issuer of credit card simply takes the money in your savings account special.
Unsecured credit cards are just that - not guaranteed. Meaning person completing a credit application and, based on your credit report, income, etc. are approved for a specific credit limit. Of course, they can also be rejected depending on the credit card issuer’s guidelines.
So it’s better? It depends on your credit history. However, if you apply for a secured credit card that are more likely pass off the credit card without collateral.
But beware. Not all cards are created equal guaranteed. And to make matters worse, there are tons of banks out there pushing credit cards guaranteed!
So how do you find the best credit card after bankruptcy? Develop a list of criteria that the insurance card to meet the needs so that we can discuss it. When I am researching secured card, ask eight criteria. Not many meet these criteria so that I am able to reduce the number of options quickly.
What are some of the eight criteria? For example, a low interest rate is important. While investigating some secured credit cards through one I ran with an interest rate of 23.99% and the other with an interest rate of only 9.25%.
This is just one of the criteria that I use to find the best credit card after bankruptcy - and consider the potential savings! For several years, you could save hundreds or even thousands of dollars in interest payments in order to keep a balance.
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