For many of us, the idea of using secured credit cards isn’t all that appealing. Nevertheless, it is a great method to establish your credit rating following a bankruptcy. As I stated in the previous section, the round robin strategy is ideal for this method of credit rebuilding.
A secured credit card is really just a term used to describe a credit card that you have prepaid. How it functions is that you’ll get a credit card limit which is equal to the amount of money that you put in as a deposit. To those with little experience, this isn’t much more than paying cash and interest for goods and services. This doesn’t seem like a good idea at first, but I will tell you it is a great way for you to raise your credit score.
This is reason why secured credit cards were invented. Just as long as you maintain a 70% balance on your credit card and make all payments on time, you are good and this will enable you to raise your credit limit and help you recover from your bankruptcy in the long run.
There are many different kinds of secured credit cards on the market these days and you have to be selective about which ones you should go after. So many banks and companies are offering them that they compete with many different incentives in order to get you to theirs. Some of the most popular of them are:
CHASE PREPAID MASTERCARDS AND VISA
This prepaid credit card can offer you 0% interest on your prepaid credit card which is great for providing help to you in order to keep those payments up. They will need a minimum $500 dollars deposit, but you can also pay more. We suggest you begin at a minimum of $1000. Chase cards are accepted and recognized in all the places that Visa and MasterCard are found. Since they also offer unsecured cards, nobody will know which version you are using. This is positive for the person who really doesn’t want it to be too obvious that they are using a card which is prepaid.
Chase also does run off of their own banking institution, so when you’ve established your good standing with them, they might upgrade you to an unsecured card through the transfer of your balance and raising your credit limit later on. They will usually make a reference to your account following 6 months. Some other secured credit cards with similar offers are:
• Orchard Bank MasterCards
• First Bank Visa
• Eufora prepaid MasterCard
• Premier Bank
Read on and find out more on the process of recovering from bankruptcy with Secured Credit Cards 2