There Is Life After Bankruptcy By Applying For A Secured Credit Card

By Author: J.J. Yong
Total Articles: 963
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With the current financial crisis, there are many reasons why Americans are declaring bankruptcies when they can't make their payment for their outstanding. Here are some survival tips which can help you to cope better after bankruptcy.

First thing first, accept the fact. It is natural to feel depressed and disappointed, but sooner or later, you will have to move on. You must step out of your comfort zone to rebuild your credit history. One of the best ways for you to fix your problem is to apply for a new credit card.

Do you know that you will be able to enhance your credit score by opening a new credit card account? You may think that it is a crazy idea. Seriously speaking, there are in fact many credit card companies in United States which offer "special" credit cards to those people who are recent bankruptcies. You still can own a card even your credit score has been destroyed.

How can your application be approved?

You are advised to approach your bank or credit union, especially the one you have good track record with. Explain your situation to your lender honestly and request for a new credit ...
... card with reasonable interest rate, if possible. In common, the interest rates for people who have undergone bankruptcy are high, normally 30% - 35% per annum. As you need the card to repair your credit rating, you still need to accept the terms but make sure you utilize the card appropriately. You can get a co-signer so that both of you can jointly own the account. By getting a co-signer with good credit, you will be able to avoid high interest rate. Some of the banks will only offer you a secured card. If this is the case, save some money and deposit it to your credit card account. The banks usually set the credit line based on the amount of your deposit.

When you obtain your card successfully, you must make sure that you make your payment regularly and promptly so that your credit rating can be improved gradually. Once you have built your credit, you will be able to switch to unsecured credit card in 2 years time.

To sum up, even you have declared bankruptcy; you still stand a high chance to rebuild your credit history through the positive way mentioned above. What is the most important? Be determined to become debt free, repair your credit, build your confidence, and get on with your life.
Find out how to apply for secured credit cards, visit CreditCardsForBadCreditTips.com.