Many consumers are under the impression that if you end up in a bad credit situation that leads into bankruptcy that there is no chance of getting a credit card ever again. Well this is not the case as it is very possible to obtain a credit card after you have declared bankruptcy, it just may take a bit longer then if you where in better financial standing. Unfortunately there are many scam artists out there that are looking to take advantage of people in bankruptcy situations by offering them a credit card scam. So how exactly does a consumer put himself or herself in a position to get a credit card after they have declared bankruptcy?
The saying ?If it sounds too good to be true, it more then likely is.? Has been around for a long time and rings quite true when you have declared bankruptcy and are trying to get a credit card. Should you be in this type of situation and get any type of credit card offer that is offering you a credit card with a high credit limit and low interest rate it is extremely likely to be a scam. Scam artists who run these types of scams know how desperate that people who have claimed bankruptcy are to obtain a credit card and use that information to try and get their hard earned money from them.
When you locate a legitimate credit card for those in a bad credit/bankruptcy situation there is a huge chance that you are going to have to pay a higher then usual interest rate as well as an annual fee that will probably be considerably higher then if you where to be in a better financial standing. A credit card company that is not out to simply relieve you of your cash will not expect that you pay any fees up front before you were to get your credit card and most certainly would not be asking for checking account information in an attempt to get money from you in that manner.
In some cases a reputable credit card company will ask for a security deposit if you have declared bankruptcy and are in the market for a credit card. Just make sure to do your research into the company so you know that your money will be safe.
How Does Bankruptcy Affect Your Credit
Credit cards are incredibly important to establishing your credit, but if you use them unwisely, they can destroy your credit almost as fast as a bankruptcy. The first thing you need to remember with your credit card is that it is important to pay everything back as quickly as you can. If you do not have the money to make a full payment, then you should at least make minimum payments on your credit card as this will keep your credit from falling and interest from adding up.
Second, in terms of how many credit cards you should have, it is important to understand the magic rule of two and three. One credit card is often too little to sustain good credit because you will not have enough credit to raise your credit score. However, anything over three for credit cards and you will be hurting your credit by looking like a compulsive borrower. Your credit card total should be two or three, no more and no less. If you are attempting to establish your credit and worry about getting a large credit card from one of the big companies like VISA or MasterCard, then you can get a credit card from a department store. They are very easy to get, they can help establish and repair your credit, and even if you buy nothing the cards will show up as established credit on your credit report.
Lastly, but possibly the most important point is that you should never, under any circumstances, use cash advances. Cash advances are horrible for your credit; in fact, it is even worse than not paying your credit card for months on end. The reason is that when you buy something on your credit card, the interest rate is usually about 10 to 12 percent. However, when you take money out on a cash advance, you can pay as much as 25 to 40 percent interest on that. Minimum payments will rise, you will fall behind and your credit score will sink like a stone in water.
Having a credit card is not a right, it is a privilege. Unfortunately, too many people do not realize how important it is to manage their credit cards properly so that they do not damage their credit score. However, if your credit score is low, then you can repair it by always paying your credit card bills, or at least making minimum payments, having two or three credit cards, and never using the cash advance option on your credit card. By following these tips, you can fix your credit and maintain good credit for years to come without the worry of falling into a debt spiral that slowly pulls you down into the deep and dark waters of debt.
Both Arthor Pens & Dr. Jennifer Lagrotte, Dmft are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Arthor Pens has sinced written about articles on various topics from Affiliate Programs, Pets and Pets. The author is owner/operator of several credit sites including websites specializing in. Visit our website to get. Arthor Pens's top article generates over 90500 views. to your Favourites.
Dr. Jennifer Lagrotte, Dmft has sinced written about articles on various topics from Family, Debts Loans and Credit Counseling. Jennifer Baxt, works with people who are having trouble with their credit and want to improve their score. We offer solutions to credit problems by removing negative items from credit reports. You can visit our website www.creditrepairbydrjen.com for mo. Dr. Jennifer Lagrotte, Dmft's top article generates over 14800 views. to your Favourites.
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