Secured and prepaid cards good option after bankruptcy
By Credit.com Staff
As a result of the subprime mortgage crisis and subsequent recession, an unprecedented number of Americans have sought financial protection by filing bankruptcy. Studies show that most bankruptcies are the result of medical emergencies, divorce proceedings and other life events that individuals have very little over. Regardless of the reason, obtaining credit after bankruptcy can be difficult.
According a recent MarketWatch column, consumers seeking to obtain a credit card after they file may benefit from a secured or prepaid credit card. Most secured cards report to the three major credit bureaus - Experian, Equifax and TransUnion - allowing cardholders to improve their credit.
Prepaid products also offer another alternative to consumers seeking to live within a defined budget and curb their spending habits. Regardless of the credit method consumers choose, MarketWatch warns against walking into a credit agreement uninformed about fees and additional charges.
Recent reports show that more underbanked and unbanked Americans are turning to prepaid products in liue of traditional credit cards as a way to avoid overspending and paying high interest rates.