Deciding to file for bankruptcy is not an easy decision, but those who emerge from it are often thankful for a fresh financial start and the opportunity to rebuild their finances. While one of the fastest ways to rebuild your credit is through opening up new credit, there are few cards available to those who have recently filed for bankruptcy.
The exception is secured credit cards. Applicants who have recently filed for bankruptcy are generally approved by providing proof of identity. These cards require a refundable security deposit be submitted, first. Secured card holders are required to make monthly minimum payments and are subject to interest charges if the card is not paid off in full every month. These payments are reported to the three major credit bureaus, giving you the opportunity to improve your credit score as you make on-time payments.
Below are five credit cards you can be approved for after your bankruptcy is fully discharged:
Capital One Secured MasterCard
This is one of the only secured credit cards with no annual fee. Cardholders must give a refundable security deposit of $49, $99 or $200 in order to receive an initial credit line of between $200 and $3,000. The standard interest rate for purchases is 24.9% APR.
Wells Fargo Secured Visa Credit Card
New card holders must submit a $300 refundable security deposit, which then becomes their credit limit. Benefits to this card include: auto rental collision damage waiver coverage, emergency card replacement and a roadside dispatch service. In addition, cardholders have a cell phone protection policy that covers theft or damage up to $600 (with a $25 deductible), when you charge your phone bill to the card. This card comes with an annual fee of $25 and a standard interest rate of 18.99%.
BankAmericard Secured Credit Card
There is a minimum refundable security deposit of $300 to open an account. The maximum credit limit (up to $4,900) is based on income, the ability to pay and the size of the security deposit. After 12 months, the account will be reviewed and cardholders may qualify to have their security deposit returned, without any interruption of their existing account. There is a $39 annual fee for cardholders and the standard interest rate is 20.24% for this card.
US Bank AeroMexico Visa Secured Card
This card doubles as a rewards card. Cardholders can receive double miles on gas and grocery purchases and a mile per dollar spent anywhere else. New card holders earn a 5,000-mile bonus and a complimentary companion certificate after their first use of the card, as well as a $99 companion certificate each year with renewal. Additional benefits include a complimentary checked bag on AeroMexico flights. There is a 22.99% APR and a $0 introductory annual fee for the first year, which is $25 per year after that.
USAA Secured Card American Express
This card requires a $250 deposit, which is placed in a two-year, interest-earning certificate of deposit (CD). The amount of your deposit, which can range from $250–$3,000 establishes your credit limit. This card includes benefits such as auto rental collision damage waiver, extended warranty coverage and travel accident insurance. This card is open to active and retired members of the military, as well as their families. There is an annual fee of $35 and the standard interest rate is 9.90%–19.90.
If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.