Best Credit Options After Bankruptcy

Filing bankruptcy may seem like the end financially… your credit score tanks and it seems like there is no way you’ll ever recover from the stigma attached to it.  But, the truth is, once your bankruptcy is discharged, at some point, you will need credit again, whether it’s a different car to drive, another place to live, or any one of the hundreds of reasons why you’re going to want to start rebuilding your credit score as soon as possible.

But who’s going to extend credit to you after bankruptcy?  Believe it or not, you will likely start receiving credit card offers as soon as your bankruptcy is discharged, and you will be tempted to accept those offers.  But, before you do, you might want to consider the source of those offers.  After bankruptcy, you will likely see offers from subprime lenders, or lenders who specialize in working with those who have filed bankruptcy, and while some of these lenders are well known, you will want to sit down and carefully review all of the terms and conditions of the offers before you accept any of them.  Often there are hefty fees and astronomical interest rates associated with these types of credit cards and it may be in your best interest to consider other options to rebuild your credit score.

One of the best options available for re-establishing credit after a serious financial setback, such as bankruptcy, is to get a secured credit card.  Unlike many of the subprime offers that will arrive in your mailbox, a secured credit card typically has a very reasonable interest rate and limited fees attached to the card because the credit line that you establish will be secured by a cash deposit that you make when you set up the credit card account.  Other than the security deposit, your credit card account will then work just like any other credit card… you will make purchases, you will make payments on your account balance, and you will pay some interest on the unpaid balance every month.

The credit card company will then report your responsible use to the major credit bureaus and this will help your credit score in two ways.  You’ll not only be rebuilding your payment history, but you will also start building your available credit, as well.  These two items actually account for more than 60% of your credit score, so working on these two first only makes sense.

The other option that you have is to apply for a catalog shopping or gas credit card.  Catalog shopping lenders, such as a Fingerhut Credit Account issued by WebBank , typically are much easier to work with when your credit is less than perfect, so your chances of getting approved are much higher than if you try to get a conventional credit card right off the bat.  Plus, many catalog lenders offer decent interest rates, promotional codes, and low monthly payments, so you can be sure that your budget can handle the purchases you make.  And, just like a secured credit card, your responsible use will be reported to the major credit bureaus, so you can start rebuilding that credit score right away.

Either way you choose to go, there are credit options available to you once you’ve filed for bankruptcy, you just have to know where to start.  And once you do get started on your score, you have to be diligent – pay your bills on time, every time, keep your balances low, and don’t overdo it by applying for too much credit too soon.

Remember, it’s up to you to prove that you can handle credit again after bankruptcy!

The Best Catalog Card to Rebuild Credit

When it comes to catalog sales, Fingerhut is probably the single most recognizable catalog retailer in the world! Who hasn’t gotten half a dozen of their catalogs this year alone? But, I’ll bet you didn’t know that Fingerhut is also one of the best sources of credit for those with less than perfect credit? It’s true!

Fingerhut is one of the few companies that will actually give you the opportunity to get a fresh start on your credit. And, even though it’s mentioned in their offer that a Fingerhut account will actually help you to build your credit, bet you don’t know how having a Fingerhut account actually works to help you rebuild your credit, do you?

Now, let’s talk about the benefits to you – here are the top five!

  1. Fingerhut regularly reports the status of your account to at least one of the three major credit bureaus.  This report includes the total balance due on your account and whether or not your payments are made in a timely manner, both of which are used in calculating your credit score!  (Making your payments on time, every time, typically improves your credit score!)
  2. Fingerhut reviews your account on a regular basis to see if you are making your payments in a timely manner, how much you’ve paid, etc., and if your account is in good standing, they may offer you a credit line increase of a couple hundred to even several hundred dollars!  That’s right, it’s been my experience that Fingerhut will significantly raise your credit limit the more that you use the account to purchase items and as long as you make regular, timely payments.  (And that significant credit limit can also significantly improve your credit score!)
  3. Fingerhut offers an interest rate on purchases that is often equal to, or even lower than, other store/catalog sites and even many credit cards.  Especially if your credit is less than perfect, you are likely paying as much as 33% and even as high as 39% interest on some credit cards – a typical Fingerhut account will be in the mid to slightly up 20’s when it comes to your interest rate.
  4. Fingerhut does not charge a monthly or even an annual fee simply for having an account through WebBank.  Compare this with other store/catalog sites and most credit cards and you’ll see just what a benefit this is!
  5. While most people qualify right away for a Fingerhut account, in the event that you don’t qualify for a revolving charge account, Fingerhut offers a special FreshStart program where you place an order, make an initial $30.00 down payment, and they will allow you to make payments on the rest of your order.  Once it’s paid off, you account will typically be converted to a revolving charge – that’s definitely a win/win situation!

And finally, what’s the best reason to open a Fingerhut Credit Account issued by WebBank ?

PURCHASING POWER!  Think about all of the times that you might need credit… Christmas, birthdays, graduation, the start of a new school year, moving to a new home or apartment… the list goes on and on.  Too many times, people who have suffered through a bankruptcy, divorce, job loss, or other economic setback find that they can’t buy anything unless they have the cash to pay for it up front, and as much as we’d like to, we can’t always do that.  With a Fingerhut Credit Account issued by WebBank , you’re able to purchase the things you want or need when you need them the most.  (And the best part is, you’ll be improving your credit when you do.)

The Best Ways to Rebuild Your Credit After Bankruptcy

Looking for the best ways to rebuild your credit after bankruptcy?

Although it seems like you’ll never recover from serious credit setbacks, there are actually ways to begin the process of rebuilding your credit score after bankruptcy.  One of the best and least expensive ways is to open an account with a store/catalog sales site like Fingerhut.

Will opening a Fingerhut credit account help your credit score after bankruptcy?

Unlike a lot of other store/catalog shopping sites, Fingerhut actually has a program called the FreshStart program that was created especially for those who have less than perfect credit, so even if you don’t qualify for a regular revolving credit account with Fingerhut, you may still qualify for the FreshStart program (most people do qualify).

What is the Fingerhut FreshStart program?

Fingerhut’s FreshStart program is actually set up so that, once you are approved, you place the initial order (usually up to $300 worth of merchandise). Then, you’ll remit what is essentially your first payment on the new account, and Fingerhut will ship your order. You’ll continue to make the payments, and eventually, if your payments are timely and regular, your account may be considered for conversion to a revolving charge account. (Over time you will likely see your available credit increase and they offer specials where you pay no interest for a certain amount of time, where you can buy larger items like furniture, and much more!)

The Fingerhut FreshStart program can help you to rebuild your credit in two ways:

  1. Your timely, regular payments will be reported to the credit bureau, which will definitely help you to start to rebuild your payment history.
  2. Your available credit will be reported as well, and in the event that your credit limit is increased, that will also be reflected positively on your credit report. Just make sure that you keep your “available credit” around 75% of your total credit limit, because that is a very important factor in calculating your credit score.

And last but not least, there is another reason to consider Fingerhut – you will gain buying power!

Let’s be honest, when you have no credit, it’s really hard to buy anything (Christmas, birthdays, or just something you need around the house).  Fortunately, Fingerhut offers a huge selection of fine quality, brand name merchandise at highly competitive prices, and the prices are even listed two ways on their website: The full price is shown AND they show you the monthly payment amount, so you know how much you’ll need to pay each month before you make the purchase. (This helps tremendously if your budget is tight.)

Think Fingerhut might be the right choice for you?

(Trust me, this isn’t your mother’s Fingerhut anymore!)