If you are considering applying for a credit card after having gone through bankruptcy, the best advice is to apply for secured credit cards that initiate collateral usage for the credit card application other than applying for unsecured credit cards.
Have you ever wondered how secured and unsecured credit cards differ from one another? By the word itself, you know that the secure credit cards are secured while the unsecured credit cards are unsecured. The secure credit cards uses your saving accounts as collateral, usually starting from five hundred dollars or more that the credit card issuer use to determine credit limits for you, and as mentioned used for collateral purposes if there is a default in payments. For instance, in your savings accounts you have the amount of $500 dollars that can be used as collateral used for possible problems that are most likely to occur that can result in default payments. When you default, the card issuer automatically deducts the payments in your savings account to pay for the credit card.
Unsecured credit cards are also an option for those in need of a credit card but application for these credit cards may be difficult due to related bankruptcy problems. In applying for unsecured credit cards you are required to fill in an application form that is based on your income, credit report, and other necessary information stated on the application form that credit card issuers need to grant approval to your credit card application. These credit cards are approved with credit limits based on your income and credibility. Although applying for unsecured credit limit does not entirely mean that you are qualified for the unsecured credit card, instead applications are also based depending on the credit card issuer's guidelines too.
In cases like bankruptcy, applying for secured credit cards are best. Besides, unsecured credit cards depend on the history of your credit, lessening your chances for unsecured credit cards. The moment the credit card issuers learn you have a record of bankruptcy in file, the issuer will definitely be questionable and may not grant you a credit card. On the other hand applying for secured credit cards have higher chances in getting a secured credit card whereas unsecured credit cards are difficult to apply for due to credit report such as bankruptcy.
Many companies offer secured credit cards that you may consider great, but the truth is all secured credit cards can be strenuous and could make troubles for you. Secured credit cards are not all the same therefore consider researching the different types of secured credit cards in limiting your choice by applying for the best credit cards. There are some criteria mostly important before applying for secured credit cards.
The following criteria you should consider are low interest rates, application fees if any, and be sure that a secured card issuer informs all three credit bureaus about the application. You should consider searching for secured credit cards that has low interest rates and no application fees included. Also, the important thing to remember is all secured credit cards should be reported at all credit bureaus for approval.
Applying for the right credit cards need time and effort for researching different types of credit cards offered by companies. If you feel that you are still not satisfied with secured credit card, you can also try unsecured credit cards. However, because of a bankruptcy background, the best to apply for credit cards are secured credit cards.