Credit Cards after Bankruptcy

One of the first questions most people have after claiming bankruptcy is "How do I start rebuilding my credit?". The more general answer is slowly but surely. A more specific answer would be to get yourself a credit card and start using it - smartly.

Getting a credit card won't be easy, but it certainly isn't impossible either. First things first - you may used to pick your credit cards for travel rewards, points or other perks. Be aware that within a year of claiming bankruptcy, you aren't going to get those "premium cards". All you do by applying for them is rack up credit inquiries on your credit report.

In life you learn to crawl, walk and then run. When rebuilding your credit - especially with credit card companies - after a bankruptcy you have to follow the same steps. This usually involves getting a secure credit card, then an unsecured credit card and then finally having the history to get the premium cards many people take for granted.

There are tons of companies out there offering secured credit cards. A secure card is almost like a debit card. If you put 500 dollars into the credit card account then your limit is 500 dollars. However, unlike a debit card, they don't automatically deduct payments. You pay it off like a regular credit card. But because of the deposit they have no fear of losing any money. If you don't pay, they'll take your deposit to cover the charges (and put a blemish on your credit report, so remember to pay the card).Related Articles:

+   What your bankruptcy record says about your credit worthiness
+   How credit counseling can help your financial habits
+   Getting a new mortgage after filing personal bankruptcy
+   Rebuilding your credit after bankruptcy and what to know