Q: After I filed bankruptcy I accepted an offer for an HSBC card with a $500 credit limit, a $49 annual fee, zero percent interest for the first year, and 14 percent after that. Did I make a good choice?
The reason I brought up a secured credit card is that a secured credit card, or any secured debt for that matter, is the one of the fastest ways to rebuild credit, and with a recent bankruptcy, that could be a real advantage for you. For that reason alone you might consider getting one. You can go to any local branch of a major bank; most of the bigger banks offer a secured credit card program. If they do, they will have you open a savings account with $250 or more and then they'll issue a credit card against your savings. The important feature of this type of card is that payment history is normally reported to the credit bureaus monthly, so make sure any card you are interested in will report.
Because more than one third of your credit score is based upon on-time payment history, a monthly report of a secured debt paid consistently on time is very valuable and is the fastest way to rebuild your credit. And rebuilding a credit score after your bankruptcy should be the most important issue in your finances right now. The bottom line is never be late with any payment as this will be like pouring a bucket of ice water on your credit.
- If I just filed for bankruptcy at the beginning of the year, when can I get another credit card to start building back my credit?
- I am looking to establish good credit so I can buy a home for my family. What kind of credit card should I start out with?
- I'm a 22-year-old female who makes about $1,000 a month. I have a credit union credit card with credit line of $500. I recently applied for a Lowe's credit card and was denied. I'm always on time with my credit card payments. What would be the reason?
- Are Discover Card credit cards any good?
- Is a credit score of 725 considered good?
- Which bank offers the best debit card?
- Why do you rate American Express credit requirements as "good credit" to secure a card? I thought to qualify for an American Express card you have to have excellent credit.
- Supposing you have a perfect credit score of 800 or better; which credit card offers the highest credit limits?