Is It Possible To Get a Credit Card After Foreclosure?

None of us want to find ourselves in a foreclosure. But sometimes, it just makes sense to walk away from a home if we can’t afford it. Due the unprecedented recession and high unemployment, more homeowners than ever are finding themselves in this situation. Fortunately, it is possible to rebuild your credit after a foreclosure. Here are some tips to help you out…

Before, during, and after the foreclosure process, make sure you stay current on all of your other debt. Keep paying on your credit cards, car loans, etc. That way, all of these other accounts will remain in good standing.

Many people that enter foreclosure have already maxed out their credit cards, stopped paying their auto loan, etc. If that’s the case for you, then you will have to rebuild credit from the ground up. Financial blogger, Michael, over at CreditCardForum.com states “The best credit card after bankruptcy or foreclosure is often a secured card. This is because virtually anyone can qualify for one, regardless of their credit history.”

After you have your secured card, continue to use it responsibly and build up your credit. After a while, you should be able to qualify for better, unsecured cards. However, it will be hard to qualify for top tier cards like American Express as long as you have a foreclosure on your credit record (it will fall off after 7 years). But rest assured, it is possible to get a credit card after bankruptcy and foreclosure.