Debt Consolidation Loans

There are many credit card issuers out there promoting what some people refer to as “bankruptcy credit cards” - that is, credit cards for people who have a bankruptcy on their credit report.

Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies - but for the purpose of this article, we will use the term “bankruptcy credit card”.

Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it’s “secured” by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.

So how do you go about choosing a “secured” bankruptcy credit card? The first step is to come up with a list of criteria. In After Bankruptcy Credit Solutions I cover eight criteria you can use. When I apply the eight criteria, only a handful of bankruptcy credit cards are left - so it narrows it down to the better ones quickly.

There’s not enough space here to cover all eight of the criteria I use when selecting a bankruptcy credit card, so let’s focus on a few of them as a starting point:

1. Has Reasonable fees

What’s reasonable? Well, while researching some bankruptcy credit card issuers I came across one that charged a $120 application fee. Compare this to a number of others that charge no application fee at all! But that’s only part of the picture -you also want to make sure the bankruptcy credit card issuer offers an interest rate that is competitive with other issuers. This where comparison shopping, and making sure you are aware of every fee the card issuer charges, is critical.

2. Reports to the major credit reporting agencies

This is very important - if you want to rebuild your credit history, make sure the issuer of the bankruptcy credit card reports to the major credit reporting agencies: Experian, Equifax, and Trans Union. You also want to make sure the information is reported a certain way - in After Bankruptcy Credit Solutions, I go into detail on this.

3. Reports credit limits

Why is this important? If the bankruptcy credit card issuer does not report your credit limit, this could lower your credit score with some credit scoring models because they may automatically assume you are at your limit - even if you are using only 10% of the available credit line.

We’ve only touched on three of the eight criteria I cover in After Bankruptcy Credit Solutions. But, at the very least, it should give you a starting point when it comes to choosing a bankruptcy credit card.

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This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

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R. Lawrence Anderson is author of href="http://www.bankruptcy-credit-solutions.com">After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy - including how to select a bankruptcy credit card.

Tags: get out of debt, debt settlement, debt, debt consolidation, finance

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Obtaining credit after bankruptcy is not so much the problem or the issue; the issue should really be, do you need it?

We all know that if you live in the United States, that life without decent credit really can be a hindrance. Think about it for a second. When was the last time you tried to rent a vehicle without a credit card? What about stay at a hotel, or even make reservations?

True, many debit cards have relieved our needs for credit cards in many areas, but you are never going to be able to do many things without an actual credit card.

What about a vehicle? Have you ever met anyone driving a decent vehicle without having good credit (unless they paid cash for the vehicle itself)? It’s not likely. So, could obtaining credit after bankruptcy be important?

What about a home? Are you currently renting? Do you ever want to buy a house? Well, this much is true; if you have not built up any credit after bankruptcy, the chances of you being able to obtain a home loan become very slim.

Ok, so now that we realize that there is the genuine need to build up some credit after bankruptcy, the thing that is important to realize is that you don’t need a lot, and you need the right kind.

So, what the heck is the right kind of credit? That is the best question to ask. First, it is not department store credit, or a credit line through a high risk lender. It is not 8 different credit card companies that “specialize” in high risk applicants.

Ok, building credit after bankruptcy requires a serious and well detailed plan. Now, I am not suggesting that it is going to take you 10 weeks to create this plan, but it will take you a little bit of time to outline what your overall objectives are. Just sit down, with the assistance of some guides (you can find a great guide at www.creditiskey.org . Outline what you are planning to achieve over the next year, 2 years and 5 years.

Is a home in your future? If it is, you need to begin planning now. One point of interest: you might be thinking that it will take you forever to qualify for a home loan, or to build your credit after bankruptcy back up to a respectable level; this is definitely not the case.

In most cases, if the proper steps are followed, you can have your credit back on track within a 1 year period of time. However, it does require discipline and patience. It also requires some attention to detail and some sacrifice. All of the characteristics of successful people in general, so it is not like you are doing something bad!

The biggest point that I want to make here is that yes, building up your credit after bankruptcy is very important and something that you want to begin immediately. You want to make sure you do it right, following the correct steps to ensure that you shorten this process down to the least amount of time necessary. This will put back on the correct track as well as enable you to live the life you deserve to live.

Let’s begin rebuilding your credit after bankruptcy; you will be glad you did!

Subscribe to credit is key’s phenomenal 7 lesson series that is sure to get you on the fast track to credit restoration, to credit after bankruptcy. Simply click the link and begin your life after bankruptcy.

Tags: loans, consolidate debt, money, financial, debt settlement

Popularity: 3%