When looking for a credit card after bankruptcy, you may receive piles of credit card offers from different companies, and choosing the right card can be a daunting task. The most important question that comes to mind is whether to go for a secured credit card or an unsecured credit card.

Financially, secured credit cards offer after bankruptcy provides you with a better deal than unsecured cards. This is because unsecured credit card offers after bankruptcy are often designed to place you right back into debt again, by using misleading techniques such as attractive low interest rates, high up-front fees etc. For example, a bank may offer you an unsecured credit line of $150, while you pay a $98 processing fee and a $39 annual fee. Many companies may also issue unsecured credit card offers with a credit line of several thousand dollars, but after you send in your application fee, the credit limit will come down to only a few hundred dollars.

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Gone are the days when bankruptcy was considered to be a taboo; nowadays filing for bankruptcy is quite a commonplace phenomenon. Without giving it as much as a thought, many thousands of Americans are facing bankruptcy each and every year.

Common Causes of Bankruptcy

There are many reasons that can precipitate a bankruptcy. It could happen due to loss of work, sickness or simply if there has been a dwindling of the monetary resources. US federal laws are lenient with people who are not in a position to make their debt payments. Such people are given the opportunity to have their debts forgiven. However, getting a bankruptcy is not such a good idea after all. The blemish of the bankruptcy continues on the credit report for as many as ten years. And, all the bills that have been voided by the bankruptcy are added as taxable income.

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Here are three “Building Credit After Bankruptcy” strategies you can use to increase your chances of being approved for auto loans, credit cards, and home loans if you have a bankruptcy on your credit report:

Building Credit After Bankruptcy Strategy #1

Apply for credit where you have a high probability of getting approved, and make the payments on time. Sounds simple, but most people go about applying for credit the WRONG way and make it more difficult than it needs to be.

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Understand the new feeling of control because the personal bankruptcy process progresses as well as your new freedom is revealed. Our kids started taking their lunches to college rather than purchasing it. However, this isn’t a good way out because it has an adverse effect on credit ratings, and can lead to reducing an individual’s credit rating up to 250 points. However, it simply is dependent on you skill and whether or not they will accept either of those. Chapter Seven handles liquidation of assets of the organization, while Chapter 13 Bankruptcy handles the payment of debt within different group of covenants, and it is meant just for sole entrepreneurs and people.

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There are many credit card issuers out there promoting what some people refer to as “bankruptcy credit cards” – that is, credit cards for people who have a bankruptcy on their credit report.

Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies – but for the purpose of this article, we will use the term “bankruptcy credit card”.

Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it’s “secured” by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.

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