Bankruptcy and credit cards
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Bankruptcy and credit cards

Bankruptcy and credit cards


Updated: December 26, 2012

By
Add to Favorites:

A lot of bankruptcy claims in recent times have been coming from seniors who are 55 and above. According to recent reports, a lot of seniors who have made bankruptcy filings have lost their savings, lost money in the stock market, gone through foreclosure, and sadly owe more money than the younger bankruptcy filers. A lot of people believe these bankruptcy claims will subside as most credit card companies have released reports showing a decline in the rate of delinquencies and debt defaults. Here are some of the ways you can spring back after bankruptcy to build a credit history. Bankruptcy remains in your credit history for as long as 10 years, so it will be a slow and difficult process to get your credit history back to recognition.

Bankruptcy credit cards

There are many lenders who are willing to offer credit cards to those who have gone bankrupt. These credit cards have high interest rates, but they definitely help build credit history once more, as you still continue to have expenses every month. The bad credit credit cards and no credit credit cards are useful in that, they are pre-approved and are available with small credit limits. However, you need to be careful about the fees on these cards ensuring that you don't dig yourself further into the hold.

Contacting your credit union or bank

The bank where you have a checking account for a long time or the credit union could provide you with a credit card that has far less interest rate than the bad-credit credit card offers that you will be bombarded with. Requesting for the lowest possible rate for a reasonable credit card can help to certain extent.

Secured credit card

A secured credit card represents less risk for the lender. This is because, if the card holder fails to make the payment on time, the card issuer can claim it from the security deposit made initially to obtain the card. From the point of view of the credit card customer, who is recovering from bankruptcy, the secured credit card is helpful because one can obtain it quickly. Also the interest rates on these cards are less than the interests charged by unsecured credit cards, due to the risk factor. A down payment as collateral should be able to get a credit card with the same credit limit, and you can start building your credit history by making regular payments.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading