Best Credit Cards after Bankruptcy

The state of the economy has made it almost inevitable for people to declare bankruptcy. The sad truth is that we are all susceptible to this scenario. Bankruptcy can have a huge impact on your life, particularly on your credit score. If you file for bankruptcy, your score can go down up to 220 points. Worse, your low credit score will be on record for at least seven years. This means that if you had a good score before, it will automatically be pulled down very low. Subsequently, when you have poor credit rating, you cannot take advantage of low interest rates, high spending limits, and cash back rewards.

The Good News

Considering what happened during the credit crunch in 2008, several creditors have started engineering credit cards for people experiencing bankruptcy. The cards come with helpful features that are ideal for those who want to regain their good credit rating. Usually they have limits that can be modified over time. There are also cards that have special tools to monitor the expenses made by the cardholder.

Top Credit Cards to Choose From

1.     Capital One Secured MasterCard – This is one of the most popular choices for people after bankruptcy. This card does not require you to pay for application fees or processing fees. If you use the card well, your good behavior will be automatically reported to the three credit bureaus. This comes with a powerful spending tool that allows you to keep track of your expenses so you do not get into high debt again. You are given the opportunity to raise your credit line without the need for more security deposits.

2.     The Orchard Bank Classic MasterCard – Even if you spend more using this card, the chances of forgetting your payment date is decreased. This is because you can select your own date of when you should repay. You will also get alerts on your phone or in your inbox as the date comes closer. If you have issues with your card, you can easily phone their customer service hotline. The card also comes with zero liability protection against fraud and credit card replacement for emergencies.

3.     Wells Fargo Secured Visa – During the financial crisis, Wells Fargo was one of the companies in the United States that remained dominant. You can apply for a Wells Fargo Secured Visa after you have experienced bankruptcy. Since this is a secured card, you will have to pay the minimum deposit of $300. There is also an annual fee of $25. The card comes with great features, including assessment for your monthly expenses and protection for your checking account. This could be the card that can help you get back on track. Wells Fargo reviews the secured accounts of the customers regularly. If they find that you manage your account correctly, they can give you an unsecured credit card.

Before you apply, check your credit report to see your current score. You can then talk to the issuers to find out if their deals match what you are looking for.