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What's the Best Credit Card After Bankruptcy?


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TERMINOLOGY

The best credit card after bankruptcy is a secured credit card. Since here is no risk to the lender, anyone can get one even with bad credit. This card will allow you to re-establish good credit and eventually apply for a standard credit card or other loans.

What Is a Secured Credit Card?

A secured credit card is a credit card that can be used just like any other card. It is usually a Visa or MasterCard and can be used anywhere that accepts credit cards. The bank will ask for a deposit to made, and the amount of money you put into an escrow account will be the limit you receive on the card. If you don't make your payments as promised, the money will be deducted from the account.

Benefits of a Secured Card

Anyone can get a secured credit card as long as they can put the cash into an account for as long as they have that credit card. The card issuer will report monthly to the credit bureaus and will rebuild credit. Many of the banks that issue secured cards will allow you to move to a conventional credit card after paying on time for a year or more.