Blog

Credit Cards After Bankruptcy

By Philip Tirone

The purpose of this blog post is to summarize Lesson 2 in our 7 Steps Program, which is the most important part of rebuilding your credit score after bankruptcy.

If you want a 720 credit score in the next 12-24 months, you need to apply for three new credit cards.  Think about it this way… you are going to rebuild your credit by strategically placing new credit around your previously bad credit.

This does not mean you are going to charge large sums on each credit card, rather, you are going to simply charge a little each month, then pay it off immediately.  With this process, you will pay $0 in interest.

Since, 46% of credit cards have a negative impact on your score (according to a Federal Reserve Board Study), we have identified the credit cards that will help you rebuild your credit score, which are listed below.

Also, we do not recommend that you apply jointly for credit with your spouse, you can read about that here: http://www.720creditscore.com/blog/marriage-and-credit-join-lives-not-accounts/

Follow these steps until you have three credit cards each:

Step 1:  Apply for one non-secured credit card here:  http://www.720creditscore.com/help/credit-cards/if-you-have-good-credit/

If you get approved, apply for another one, and then another (three total). If you get denied, go to Step 2.

Step 2:  Apply for a secured credit card here:  http://www.720creditscore.com/help/credit-cards/secured-credit-cards.

With a secured card, you will need to place money in their bank in order to be granted credit.  This will help your credit the same as a normal credit card, and in 6-12 months, you will be able to change the credit card to a traditional one.

If you don’t have money for a secured credit card, then go to Step 3.

Step 3:  720CreditScore.com has partnered with a nationwide financing company in helping people rebuild their credit score after bankruptcy.  Everyone will be approved, you can read about it here.