How to Get Post Bankruptcy Credit Cards

If you have filed for bankruptcy, you may be inundated with credit card offers. Do your research before you apply -- these cards often have high interest rates that can put you right back into financial trouble. Follow these steps to find the right post-bankruptcy credit card for you.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• list of unsecured bankruptcy credit cards
• application fees for bad credit credit cards
• criteria to apply for new credit cards after bankruptcy

1. Apply for only one credit card after bankruptcy. It may be tempting to apply for many offers after clearing your debts, but you will lower your credit score by opening multiple lines of credit after a bankruptcy. Get a card with a small line of credit to keep your spending in check.

2. Look for bankruptcy credit cards with the lowest fees and interest rates. Some smaller lenders or Internet-only banks offer bankruptcy credit cards for consumers with bad credit. These are often associated with large fees and exorbitant interest rates. Shop around for credit terms that will help you avoid large interest charges.

3. Examine the terms of the agreement closely. Make sure that the banking institution reports to all three credit agencies. Determine the amount of the application fees (credit card application fees can vary from $35 to $150 dollars or more for unsecured credit cards) and consider any yearly renewal fees for access to the unsecured credit card.

4. Pay your monthly credit card bill on time. If you miss a payment, you'll get a post-bankruptcy black mark on your credit report, which will prevent you from getting credit cards in the future.

Tips & Warnings

• Bankruptcy credit cards that are secured with your funds have disadvantages.

• Get informed on your post bankruptcy credit card before you sign the dotted line.

• Credit card companies prey on new borrowers fresh out of bankruptcy. They know that you are a great credit risk, due to your inability to discharge new debt for at least eight years.

References

• Credit Cards: 5 Post-Bankruptcy Myths