If you have a discharged bankruptcy and would like to learn how you can get new credit cards then read on. We will be looking at the important steps you need to take before applying and what you should look for. Reading this article should help you be able to determine which credit card is right for you.
Make sure your credit report is accurate
You may think that reviewing your credit right after a bankruptcy discharge is not that important. This is not the case! Creditors routinely misreport accounts that have been included in a bankruptcy.
Instead of reporting them as included in the bankruptcy and discharged, they report them as being open and currently past due. This has a devastating impact on your credit score and can prevent you from qualifying for new credit.
You will need to dispute any accounts that are not reporting accurately with each of the three major credit bureaus. Once this is corrected, it’s time to start shopping!
Shop wisely
If your bankruptcy discharge is recent, you will want to shop for a secured credit card. If you are at least six months out from your bankruptcy discharge, you may want to consider applying for an unsecured card for people with bad credit. If you are going to apply for an unsecured card, it is a good idea to look for a credit card company that offers both secured and unsecured cards so that if you do not qualify for an unsecured card yet you haven’t wasted a credit inquiry.
Make sure you select a card that does not carry exorbitant fees. Don’t fall into the trap of assuming that you should be happy than anyone will do business with you and accepting the first card you find. There are many vulture companies out there that charge fees that are almost equal to your entire credit line. This is not what you want! Look for a card that does not have an application fee and whose annual fee is $45 or less.
It is critical that you make sure that any credit card that you select reports to all three of the credit bureaus. Most cards do, but make sure that you verify this up front!
Credit cards that offer an automatic credit line increase after a set number of payments are also something you should look for. These type of programs can help you build up your credit history without having to remember to call and request credit line increases.
