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Many people think that the worst move to make after declaring bankruptcy is apply with regard to credit cards. Even more people believe that getting credit after bankruptcy is not possible. In fact, applying for credit isn't just possible, but essential to re-establishing and rebuilding your credit score. How do you do it? A secured business charge card is a tool used by many new businesses to construct their credit from scratch... and you should use it too. The card is secured because your borrowing limit is backed up by a cash deposit at the bank. This deposit guarantees your lender how the balance of your card will be paid in the event of a default. Secured business credit cards work such as regular cards in many ways but there are some small differences and as with anything else the devil is in the particulars. You make purchases, and repay the total amount each month. Your credit limit will reflect how much money you deposited in your bank accounts. So if you opened your new charge card with a $500 deposit, your limit is going to be $500. You don't pay off balance with the money in your down payment account.. it is only there because collateral. While you are not required to repay the balance every month you will discover that the interest rate you are charged is greater than normal so it makes financial sense to pay for the balance off. It also helps your credit score, the bureaus want to see that you simply make regular payments and are responsible together with your borrowing habits. Secured business credit cards will often have higher interest rates than regular credit cards, and almost all of them come with an annual fee. This is because following a bankruptcy, you are seen as the lending risk. Using a secured card and paying balance in full each month rebuilds your credit rating, and improves your standing. After in regards to a year, you may qualify for a normal card again. Secured business credit cards are a big step forward on the way back from bankruptcy. As long because they are used responsibly, they can enable you to get back on track and help you as well as your business regain your financial reputation. Once you'll be able to get a non secured card that does not automatically mean you should do therefore. If you know that you will struggle to resist the urge to run the actual cards up and delay paying all of them off then don't change. Once you've been bankrupt you don't want to visit there again.






Corporate credit cards are really worth while having, they can help a person rebuild your credit after bankruptcy. Secured credit cards are specifically useful for this.

View this post on my blog: http://creditcard.valuegov.com/rebuild-your-credit-after-bankruptcy-with-secured-business-credit-cards/