Credit Cards After Bankruptcy: Is It Feasible?

When it comes to credit cards, given that they constitute an open line of credit, there are even less chances of getting approved since the lender has little control on the repayment process and thus, the risk is greater. Yet, it is possible to obtain a credit card after bankruptcy under certain circumstances.

One of the things that need to be made clear is how long after bankruptcy you are applying. Another important topic is the type of credit card you want to apply to. And finally, another issue is the things you can do in order to boost your chances of getting approved for a credit card after going through a bankruptcy process that has ruined your credit score and history.

How Long After Bankruptcy Are You Trying To Apply?

It’s is definitely not the same to apply for a credit card right away after bankruptcy than applying after two years or applying past ten years when your bankruptcy will be removed from your credit report. You need to understand that bankruptcies on your credit history scare lenders and financial institutions away and if the entry is in your recent credit history, chances are that you’ll get declined.

Truth is that there is no particular time period specified to apply for a credit card after a bankruptcy process. Yet, most lenders and financial institutions would agree that a two year period is the least time required for applying to obtain any kind of financial product if you have gone through a bankruptcy process in the past. Thus, though you may get a credit card sooner, don’t expect to obtain an excellent deal.

What Type Of Credit Card Do You Want To Obtain?

Another important issue is the fact that you can’t look ahead to obtaining the same credit card products that are offered to those with a fair credit score and history or even those with some minor delinquencies like late payments or missed payments. Those who have defaults or bankruptcies on their credit report will have to be contented with less advantageous products.

This means that you’ll be able to obtain only higher interest credit cards, with lower credit limits and that the income requirements you’ll have to meet in order to get approved will be more rigorous. Store credit cards are easier to obtain but, consequently have higher rates and though they sometimes offer higher credit limits, they can only be used at that particular store.

Increasing Your Chances of Getting Approved For A Credit Card After Bankruptcy

If you want to increase your chances of getting approved for a credit card after a bankruptcy process you’ll need to improve your credit score and history. In order to do that, you’ll have to avoid late payments and missed payments. This is due to the fact that you need to show an impeccable recent credit history in order to compensate for the past bankruptcy on your records. Sadly, a clean credit history implies six months of timely payments with no delinquencies at all.

If you can’t meet the above requirement, you can always resort to a secured credit card. You’ll need to raise some money for a deposit prior to using this card and that deposit will be your credit limit. Yet, with some use of this card, you’ll build up your credit score again and will be able to obtain a better credit card product in a matter of months.

Article Source: http://www.cursebustersound.com/article

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