Getting a credit card after bankruptcy
After you have been made bankrupt the chances of you getting a credit card is virtually nil. However, we all have need a credit card of some form at some point in our lives, this can be for checking into a hotel room, renting a car, or even to pay bills are over the phone when it necessary.
The problem being, once you have been made bankrupt there are very few credit cards that will be available to you, and those that are available to you, will be at such a high interest rate that you do not want to even have those.
So what can we do?
One of the best options available to us, is the ability to take out a credit card that involves no credit. This is a prepaid credit card, it allows electronic payments to be made when necessary, and can be checked in the majority of stores and businesses as a proof of identity and as a guarantee, providing you have sufficient to balance.
The prepaid credit card can have as much funds as you want on it, and this means that you can take it on holiday with you without any problems, or even on trips, which saves you carrying large amounts of cash around, or leaving large amounts of cash in your hotel rooms or cars. It also means you will never be embarrassed when you are dining out or at any other function, for business or pleasure, where you would want to pay by card rather than a big bundle of cash.
There is another choice we can make, and that is for the secured credit card. This type of cards is a true credit card, and even if you have been made bankrupt, but still have equity you can get this card, but the funds will be guaranteed on your property. The biggest drawback to this card, is that the interest rate does not really reflect the fact that it is a secured funds card. In reality, this card is not really a necessary as it cannot do anything better than a prepaid card, and you will have to pay higher level interest, and it is unlikely that this card can never become an unsecured credit card.
With a prepaid credit card they are normally offered from companies that also have normal credit cards, and even though this is a prepaid card, after 12 months or so, you may have the option to upgrade this card to a full credit card.
You must check with that the people that provide you with the prepaid credit card as to the terms you must adhere to them how long you would have to have the card before it can be upgraded .By following this procedure you will increase your credit rating, and this will in turn allow you to perhaps try other credit cards .
The drawbacks of a secured credit card typically is that the limits is generally set between $150 and $700. As well as that, the interest rates does not really reflects the fact that the loan is secured, and this means that the high interest rates will hinder your choice to use this card.
The prepaid credit cards have a lower interest, and this means that you will use them more often, and this will allow you to prove your credit worthiness much more easily. You still have to pay interest, the balance works as though it is credits, but you have an account balance at the network of your own money as a kind of guarantee, and as your limit. If you go with a big company the chances are in a few short months though he will increase your credit limit to beyond the amount you have deposited.
