credit card offers after bankruptcy
How to Get a Credit Card after Bankruptcy
Applying for a credit card after bankruptcy can be a tough ordeal, even though it helps consumers to rebuild their credit score. Read through the article to know about the available options.
- Secured Credit Card: Applying for a secured credit card is advisable, since you can get one approved in as little as 6 months after discharge. It is secured with a cash deposit thus eliminating any risk to the issuer. It would be prudent to pay off the entire bill amount from the perspective of improving your score. The best part is that most of these instruments get converted to unsecured in 12 - 18 months' time, if the payments have been timely. The cardholder should ensure that the payment history gets reported to the credit bureaus on a regular basis.
- Payroll Deduction Card: A consumer can be approved for a payroll deduction card, regardless of his/her credit history, since any purchases made are automatically deducted from the person's salary over a period of 2 months. Low credit risk for the issuer translates into low transaction costs for the cardholder. They can help enforce discipline on the spending habits since the salary determines the credit limit. An additional feature is that micro loans can be availed without any underwriting expense.
- Corporate Card: Employers may sign up their employees for corporate credit cards. Although, checks are conducted by the issuer before approval, the payment is essentially the employer's responsibility. Thus, an employee with bad credit may get approved for this card. However, they may not show up on the employee's credit report. If they do, the employee's report can get impacted if the employer doesn't make timely payments.