The ill effects of bankruptcy on your credit scores linger on for seven years or more. If you are looking to get a credit card while having such bad credit history, then you may think it'll be a considerable amount of trouble obtaining one. But although difficult, it is not impossible to get a credit card in such cases. First, it is important to know what the best credit card after bankruptcy would be for you.
Since the number of people filing for bankruptcy has increased in the last few years, you may or may not be surprised to find many banks as well as financial institutions that are readily providing people with bankruptcy a chance to apply for new credit cards.
This is primarily because credit cards have become an important tool for credit repair purposes. As a result of this, a new development has taken place in the finance industry which allows people with bad credit the opportunity to obtain a credit card and enjoy its privileges while working towards repairing their battered credit.
It is true that you will find several credit card issuers claiming to have the best credit cards after bankruptcy, but not everyone can help you in this regard. Undoubtedly, the best credit card after bankruptcy is a secured one.
In fact, you'll find that many people who have filed bankruptcy are actually making use of secured credit cards while they restore their credit. Here's the reason why:
Prior to securing the best credit cards after bankruptcy, you will be required to open a checking account in a bank. It is this account that will serve the purpose of the collateral for receiving the credit card.
In case you fail to make the monthly payments on your credit card, the issuer will have the right to deduct the payment from your bank account, which is in fact the security deposit.
Although this may sound very intimidating, the fact of the matter is that the finance company will more than likely not start deducting these payments from your bank account until you have missed five or six payments consecutively.Many people report that they receive offers for the best credit cards after bankruptcy shortly after they have filed for either Chapter 7 or Chapter 13. So you need not worry about not being able to obtain one even with a black mark such as bankruptcy or foreclosure on your credit.