Getting Credit Cards After Bankruptcy

If you have a discharged bankruptcy and would like to learn how you can get new credit cards then read on. We will be looking at the important steps you need to take before applying and what you should look for. Reading this article should help you be able to determine which credit card is right for you.

Make sure your credit report is accurate

You may think that reviewing your credit right after a bankruptcy discharge is not that important. Nothing could be further from the truth! Creditors routinely misreport accounts that have been included in a bankruptcy. Accounts that should be showing as having been included in the bankruptcy are showing as past due and open. This lowers your FICO score and makes it hard to get new credit.

Each account that is reporting incorrectly will need to be disputed with the three credit bureaus. Once this is corrected, it's time to start shopping!

Shop wisely

If your bankruptcy discharge is recent, you will want to shop for a secured credit card. If you are at least six months out from your bankruptcy discharge, you may want to consider applying for an unsecured card for people with bad credit. If you are going to apply for an unsecured card, it is a good idea to look for a credit card company that offers both secured and unsecured cards so that if you do not qualify for an unsecured card yet you haven't wasted a credit inquiry.

You want to look for a credit card that has reasonable fees. Many people feel that after a bankruptcy they should just be happy with whatever they can get and as a result fail to shop around. Don't let this be you. There are many vulture companies out there that charge fees that are almost equal to your entire credit line. This is not what you want! Look for a card that does not have an application fee and whose annual fee is $45 or less.

Since repairing your credit is important, you also want to ensure that any card you get will be reported to the three major credit bureaus. Most cards do, but make sure that you verify this up front!

Credit cards that offer an automatic credit line increase after a set number of payments are also something you should look for. These type of programs can help you build up your credit history without having to remember to call and request credit line increases.