Rebuilding Credit through Loans and Retail/Gas Credit Cards

You may be able to apply for loans soon after your bankruptcy proceedings have ended. As with credit cards, you may be able to apply for secured or unsecured loans. The procedures for applying for a secured loan are very similar to applying for a secured credit card. Also, the procedures for applying for an unsecured loan are very similar to applying for an unsecured credit card.

Credit cards from retail stores and gas companies are another option for rebuilding credit. Many department stores, hardware stores, office supply stores, electronics retailers and gas stations now offer their own credit cards. However, these cards have become more difficult to acquire over the past several years. You may have to reestablish your credit through a secured credit card, unsecured credit card, secured loan or unsecured loan before you are eligible for retail store credit cards. 

One main reason why acquiring this type of card has become challenging is that even though numerous retailers offer credit cards, most of their credit card transactions are processed through only a few key lenders. A considerable majority of retail stores use Citibank, GE Money Bank, Chase Bank, HSBC and WFNNB to process their credit transactions. If you are already in the system of one of these major lenders, a new application may red flag a formerly delinquent account, further damaging your credit if you are denied a new credit line. Therefore, retailer credit cards should not be your first avenue for rebuilding your credit score.

It is always advised to speak with an experienced bankruptcy attorney to clarify any doubts about the pros and cons concerning bankruptcy proceedings. 

Useful Information to Help Re-Build Your Credit
Your Rights: Credit Reporting
Credit Cards & Consumer Loans
Credit Reports & Scoring
Free Credit Reports 
Hope this helps!
- Richard Croce -  Rich@rrc-llc.com