After filing for bankruptcy, rebuilding your credit can sometimes be difficult. Paying bills on time and in full will help, but only minimally. A good way to rebuild your credit after bankruptcy is to get a secured credit card and use it responsibly.
There are a number of different companies and banks that have secured credit card options. Some are better than others, and some are MUCH better than others. I took the time to review some of the different options that may be available to you and compiled them here for your convenience.
- Discover it – This card affords users all of the same perks as the unsecured version and carries no annual fees. The downside is that it has a high interest rate. A variable 22.99 percent APR is a high, but if you make sure you pay in full every month, this card can help rebuild your credit. Also, this card reports regularly to credit bureaus as “unsecured.”
- Navy Federal Credit Union nRewards – This card has no fees, a variable 8.99 percent APR, and will earn you a point for every dollar you spend. These cards are unfortunately only available for people in the military or related to people in the military.
- SDFCU Savings Secured Visa Platinum Card – This card has one of the lowest interest rates at 6.99 percent, which is amazing for a secured credit card. It also has no annual fees and earns points towards reward programs.
- Capitol One Secured MasterCard – No annual fees, widely accepted worldwide, and regularly reports to three major credit bureaus, but like the Discover card, it carries a high interest rate. At 24.99 percent, it’s a good idea to make sure you never carry a balance with this card.
- Wells Fargo Secured Card – This one has an annual fee of $25 per year and 18.99 percent interest rate, but if you use the card responsibly and make regular payments, not only will your credit score improve, but you will also be eligible for an unsecured card faster.
These are some options when shopping for a secured credit card. Work hard to make payments on time, or even early, and in full so that your credit will quickly increase. A secured card offers you the opportunity to rebuild your credit with the reassurance that if something does come up and you are unable to make a payment, your deposit that you put up when you got the card will have you covered.
Law Firm of Kevin D. Judd – Your Gateway to Financial Freedom