Most credit card institution offer pre-approved credit cards to individuals who’ve recently filed for bankruptcy as they are well aware that such individuals need good credit ratings to rebuild a positive credit report. It is very important for bankrupt individuals to access good information regarding how to apply and maintain credit card account repayments after bankruptcy. Below are some few tips on what one needs to do before they secure a credit card after bankruptcy.

Check Interest Rates

Pre-approved credit cards have higher interest rate charges then most. The average rates on these cards are set at 29% to 30% of the principal amount. Each card offer will have its own rate and expenses, so it is important to compare the offers closely before making a final decision on where to apply. You may want to check out what the FTC says about debt and credit before making your final choice.

Contact your Bank or Credit Union

Bankrupt individuals with slightly improved credit scores may be able to negotiate interest rates on a credit card application with a local lending institution that they have a long history with. Your bank or credit union may approve lower interest rate than a big national bank.

Apply for a Secured Credit Card

Approvals for pre-approved credit cards on unsecured plans are almost impossible. Only few bankrupt individuals may get this privilege and when they do the interest rates are extremely high. Applying for a secured credit card can help you keep your interest rate at a minimum and also enjoy a low maintenance fee. Individuals interested in secured credit cards must deposit some principal amount as security; a credit limit of similar amount is then set as the card limit. For instance an individual depositing $ 1,000 will have a $ 1,000 credit limit on their secured credit accounts. However, consistent payments of at least 2 years may upgrade the credit account to unsecured.