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When trying to find a card after bankruptcy, you may get piles of credit card offers from different organizations, and choosing the right card could be a challenging task. The most important question that involves mind is whether to choose a secured credit card or an unsecured credit card.

Financially, secured credit cards offer after bankruptcy provides you with a better deal than unprotected cards. It is because unsecured credit card offers after...

Secured or Unsecured?

When looking for a card after bankruptcy, you could get loads of credit card offers from different organizations, and choosing the right card can be quite a daunting task. The main problem that concerns mind is whether to get a secured credit card or an unsecured credit card.

Economically, secured credit cards offer after bankruptcy offers you an improved deal than unprotected cards. This is because unsecured credit card offers after bankruptcy are often made to place you right back into debt again, by utilizing misleading practices such as for instance desirable low interest levels, high up-front costs etc. For instance, a bank may provide you an unsecured credit line of $150, while you pay a $98 processing fee and a $39 annual fee. Many businesses could also matter unsecured credit card offers with a credit type of thousands of dollars, but once you outline your application charge, the credit control should come down to just a few hundred dollars.

On one other hand, a secured credit card takes a cash guarantee deposit to end up being the credit line for the deposit account held by the cardholder, your credit limit being both the amount of one's deposit or some proportion above that amount. Guaranteed credit card offers after bankruptcy are especially intended for people with an undesirable credit history or no credit history, and those individuals who have did not get an unsecured credit card before. Higher fees may be charged by them, in certain instances, they can be more affordable in total cost and security deposit.

Several guaranteed credit provides after bankruptcy also feature incentives, and rewards for good payment which results in your overall credit point without requiring any additional deposits.

Secured Credit Card Offer after Bankruptcy: things you need to learn

1. Examine the fees a part of the credit card offer following a bankruptcy, because regular payments such as for instance annual fees or processing fees may have to be produced. Also remember, annual costs vary significantly between various banks.

2. Go for a secured credit card offer that will not demand an application fee.

3. You don't have to pay a high interest for a credit card you get after bankruptcy because the card is secured by way of a deposit.

4. The organization that offer secured credit card after your bankruptcy must be able to record your payment history to the three credit bureaus, so as to improve your credit history.

5. The company shouldn't record that you will be keeping a card to the agencies, which can adversely affect your credit history.

6. Watch out for organizations credit card offers after bankruptcy that use deceptive methods collections