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post bankrupt,,, how do you get a credit card to improve credit score?

by nandooo180 14 March 2011 |

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after being declared bankrupt in 2006 and paying off all debts at that point in time and serving my three year "term" and being allowed to open a bank account in 2009. having moved on and trying hard to improve my credid score but frustrated at not being able to attain a credit card so that i can spend a little every month to improve this score, can anyone give me some advice how to go about applying successfuly for a credit card just purely for this purpose, thanks

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photoping posted
start with the easy to (but expensive to run ) store card...just buy small stuff on it and for gods sake pay it off in full each month so u don't pay interest..give it 6 months then try for a low limit credit card...It still won;t be easy as the banks are rather twitchy at the moment and you have been a bad bet in the past. hopefully u have learnt from previous mistakes and know how to manage any credit better (i'm not going to draw any conclusions from you previous problems as there are many reasons why some people become bankrupt and sometimes its not self inflicted but a serious of events that come together).
Posted on 14 March 2011 | Love 1 love Report
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MikeGG1 posted
I hope that you don't want to get a credit card so that you can go into debt with one . That would be a very bad idea.

Your bankruptcy will stay on your credit rating until 6 years after the event, so next year it will be clear. However, any banks you owed money to at that time will be able to retain that information in their own systems. so steer clear of those cards and any others issued by the same providers.

Store cards are the easiest to obtain. Make sure it is a store that you are likely to use regularly preferably for small amounts as you should pay them off monthly to avoid their high interest rates. Preferably set up a Direct Debit for the full amount so that you don't miss a payment. That would undo all your hard work.

The information that they provide to the ratings agencies doesn't say the amount. It just says whether you have paid the required amount each month. Hence the advice to keep it low from both of us.

There are several credit cards aimed at those who are trying to recover from a poor record. You could get one of them after 6 months of the store card. Again, set up a Direct Debit for the full amount each month because their interest rates are higher than normal cards.

With those 2 cards showing no misses, you should then be able to get a standard credit card once the 6 years is up. Again set up a direct debit for the full amount and don't spend more than you can repay each month. That way you will stay interest-free.

The main problems with credit cards is the interest rate and the low minimum repayment amounts which encourage you to get into debt and be stuck on their high interest rates.

Mike

Posted on 14 March 2011 | Love 2 loves Report
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Rileyha posted
Each person in the United States has a credit score. This score is intended to indicate how risky of a financial gamble you might be. There are three separate reporting agencies. Each credit reporting agency creates and states its own score. Very specific actions can have very specific effects on your credit rating. I read this here:
The basics of a credit score
Posted on 10 May 2011 | Love 1 love Report

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