It is not possible to get approved for normal rewards credit card after bankruptcy but you should not be disappointed about it. Many credit card companies are offering an alternative card, which is the secured card, for those who have been discharged from their bankruptcy. Secured card is different than normal credit card because you have to provide a security deposit which is refundable if you can cancel the card.

Every month, you are supposed to make a minimum payment just like the normal card but the interest rate that you are charged is higher. The monthly payment you make will be reported to the 3 credit bureaus so it will be counted towards the building of your credit score. You will see significant improvement in your credit score if you consistently pay your bill by the due date every month for at least a 1 year period. If your credit score improve after 1 year, you can switch to a non secured credit card.

There are lots of credit card companies that provide their customers with convenient access to their FICO score in their online account. If you carry your balance to the next month, you must make a minimum repayment which include the interest charges. If you clear your balance in full every month, you will be exempted from interest charges. If possible, you should try to apply for a card that does not charge any penalty APR or late fee if you forget to pay on the due date.

Many secured cards also offer rewards and sign up bonuses for customers.
For example, you get rewarded with bonuses when you use your card to buy gas or do grocery shopping. The rewards that you get is based on how much money you have spent with the card. Some companies will automatically carry out a monthly evaluation on the customer to see if they qualify for a non secure credit card after a certain period of time for example 12 months. If you qualify, your card will automatically be updated to a non secured credit card without you having to sign up for a new card. All the rewards that you have earned on your non secured card will be transferred to the rewards card.

When applying for a rewards secured card, make sure you get complete details about the rewards program. In this way, you will understand how you can earn the rewards points and what you can do with the points you have earned. You must find out whether there is a minimum redemption amount. Most rewards programs have a set time period to earn the rewards although some rewards programs won’t expire.

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