Loan Secrets

By guest author R. Lawrence Anderson

Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for. Let’s start by talking about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?

In case you don’t know the difference, a secured credit card is “secured” by a special savings account you establish with the credit card issuer which acts as collateral for your credit limit.

For example, you deposit $500 in a special savings account and then have a $500 credit limit. If you default, the credit card issuer simply takes the money in your special savings account.

Unsecured credit cards are just that - unsecured. Meaning the person fills out a credit application and, based on their credit report, income, etc. are approved for a certain credit limit. Of course, they could also be declined depending on the credit card issuer’s guidelines.But be careful. Not all secured cards are created equal. And to make matters worse, there are tons of banks out there pushing secured credit cards!

So how do you find the best credit card after bankruptcy? Come up with a list of criteria that the secured card needs to meet in order for you to consider it. When I’m researching secured cards, I apply eight criteria. Not many meet these criteria so I’m able to narrow down the choices quickly.

What are the some of the eight criteria? For example, a low interest rate is important. While researching some secured credit cards I ran across one with an interest rate of 23.99% and another with an interest rate of only 9.25%.

This is just one of the criteria I use to find the best credit card after bankruptcy - and look at the potential savings! Over several years you could save hundreds or even thousands of dollars in interest depending on the balance you maintain.

Okay, here’s another criteria: application fees. Again, I found some secured credit cards that have no application fees and one that had a… are you ready for this… $120 application fee! Sadly, people have paid it!

Let me give you one more criteria you can use to find the best credit card after bankruptcy: You want to make sure the secured card issuer reports to all three credit bureaus. But you also want to make sure they report it a certain way.

I don’t have room here for all eight criteria, but hopefully this gives you an idea of some of the things you need to look at when it comes to finding the best credit card after bankruptcy.

By the way, don’t apply for too many credit cards at once. If you do, it can hurt your credit score. That’s why if you’re uncertain as to whether or not you’d be approved for an unsecured credit card it may be better to apply for a secured credit card.

Now you know some steps you can take toward finding the best credit card after bankruptcy!

About the author

R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy. For details visit: http://www.bankruptcy-credit-solutions.com

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

How to Dispute Your Credit Report

By Guest Author: Jeanette Joy Fisher

Did you know that your credit score that you purchase online is not the same credit score your loan officer gets?

You probably know that when you apply for a mortgage, your loan officer gets all three credit reporting agencies reports with three different scores. From your three credit scores, most mortgage companies use your middle credit score to determine your credit worthiness.

Do you know that the credit score an auto dealer sees is not the same credit score your loan officer sees?

Imagine our surprise to find out that my husband’s credit score for purchasing my new car one afternoon was 50 points higher than his top credit score was earlier in the day when he refinanced an investment house. This happened because credit scores get computed differently for mortgages and auto loans!

If you think that you have a great credit score because you recently bought a new car, think again. You may have been told that your credit score was 700 by a finance company. Therefore, you think that you have the perfect credit score to buy a house. Don’t be surprised to hear from your loan officer that your credit score falls short of a prime rate mortgage loan.

You don’t want to have your credit history checked too often. You do get a small penalty with a few points deducted when you have too many inquiries on your credit report. However, when you’re shopping for a car or a home loan, the credit reporting agencies batch your inquiries into one. In other words, you can call several mortgage lenders to shop for the best terms and rates without losing points.

Don’t waste your money buying your credit scores. These scores are not the ones real estate lenders get. Instead, get your credit scores FREE by calling a loan officer.

Copyright © Jeanette J. Fisher

About The Author

Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties. For a free ebook "Credit Tips for Mortgage Financing," see http://worryfreecredit.com/.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

Dispute Your Credit Report