Credit Cards to Help Build Credit After Bankruptcy

Get a credit card to help build credit after bankruptcy.

After declaring bankruptcy, one of the best ways to rebuild your credit history and improve your credit score is to use credit responsibly. A couple types of credit cards are available for people who have declared bankruptcy.

Types

A secured credit card offers you a line of credit equal to the deposit you have made with the bank in a special savings account. This is safer for the bank because if you fail to make payments, they can use your deposit. People who have recently declared bankruptcy may be able to get traditional unsecured credit cards, but they are likely to have high interest rates and fees.

Time Frame

You should not need to have a secured or high-rate credit card for more than one to two years after declaring bankruptcy, assuming you are using credit responsibly and paying your bills on time. Call your credit card company after a year and ask to convert your card to an unsecured card or have your interest rate lowered.

Expert Insight

For the best results on your credit score, do not charge more than 30 percent of your credit limit. Pay your bill in full every month before the grace period is over to build a positive credit history without paying any interest on the credit card.

References

• MSN Money: Bounce Back Fast After Bankruptcy
• Credit Cards: Four Ways to Re-Establish Credit After Bankruptcy