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Chapter 7 How to Get a Credit Card After Bankruptcy
When you filed for bankruptcy, you may have sworn that you will not return to the credit line even if you have lost a job, the result of divorce, medical problems, or even excessive compensation. In our culture, you can pay everything from a set of towels to a new home that you buy, but you can probably recognize the value of credit and can not wait to start building you again.
However, if this proper bankruptcy lasts for 10 years on your credit record, then some people do not understand what happens after the loan. After getting your discharge, know how quickly you will be able to return to the credit market.
Some banks and card issuers are ready to lend money to emerging people so they can actively market them in case of bankruptcy. It is not unusual to get credit from credit card companies, local car dealerships and furniture stores. But, do not look for every offer that comes your way. Some are investigative, but others are stupid, and their condition is very bad.
Why credit card companies want to lend to Chapter 7 bankruptcy borrowers?
It seems that banks or lenders are ready to give credit to someone who is less anxious, who has lost hundreds of dollars on their competitors or thousands. But, there are these sound and rational reasons for this:
- You deposit debt of thousands of dollars as a debtor, which liberates resources (ie income) that can be used to pay new loans.
- Debtors can not register another bankruptcy for some time. For example, if you got a leave in Chapter 7, you can not delete the second chapter 7 for eight years.
- Lenders may charge higher interest rates.
Types of Credit Card You can qualify for Chapter 7 Bankruptcy Filing
Before you open some things you should know about credit card. The lender or the issuer will need to deposit funds in the organization with a special savings account. The amount of the deposit is usually equal to the credit limit, which will be allowed in the institution account. It acts as a protection for the lender. If you default in the future, the lender will not be required to pay any money as it will only pay off the amount of the deposit or pay the credit balance.
As long as it is not used to pay your balance, you still have money in the savings account. After a long-term payment, many companies allow you to replace secured cards with a high credit line in an unsafe credit card.
Safe credit cards often have lower interest rates than unsecured accounts, which you can qualify for the right after bankruptcy.
Wells Fargo Secured Credit Card
- Annual Fee: $25
- APR: 20.24 percent
- Limit/Deposit: $300 will get you a credit limit of $300
- Perks: Roadside assistance and cell phone damage protection
Capital One Secured MasterCard
- Annual Fee: None
- APR: 24.99 percent
- Limit / Deposit: $ 49 to $ 200 based on reliability
- Allowances: The security deposit may be less than the credit limit, and you can pay it in installments; Roadside assistance; Car rental insurance
- Annual Fee: $44
- APR: 11.99 percent
- Limit/Deposit: 200 to $2,000
- Perks: Lower annual interest rate than most
Unsecured Credit Card
You should also know what an unsafe card is and how to get it. This type of card is the industry standard. It is unsafe, which means that you have not deposited any security or collateral (ie Deposit). If you default on your payment, the credit card company will not have to apply for the remaining amount. So, if you do the default, it will follow your personal form.
Credit One Bank Platinum Visa
- Annual Fee: $0 to $75
- APR: 16.99 percent to 24.99 percent
- Limit: Initial limit will be $300 to $500 depending on creditworthiness
- Perks: 1 percent cash back on gas purchases
Milestone Gold MasterCard
- Annual Fee: $35 to $99
- APR: 23.90 percent
- Limit: $300
- Perks: Choose your custom card design
Card issuers charge annual fees to participate in your program and many people who also offer credit after insolvency fees. Look at these specific charges, and stay active to ask about them:
- Transaction fee
- Administrative fees
- Application fee
It is not uncommon for new account holders to get a $ 300 credit limit, their application slips to just $ 150 at the moment of acceptance. To be fully useful, you will have to pay the charge as soon as possible, but if he does not, he will pay more for interest charges. Anyway, the lender wins.
Also Read : 6 Best Visa Credit Cards of 2019
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