Bankruptcy puts a big black mark on your credit record that stays there for 10 years until the record expires. During this time, the financial advisers at Credit.com indicate that you probably won't be able to obtain a loan or unsecured credit of any kind. However, building a positive credit history during your bankruptcy is still extremely important. There are certain types of credit cards known as secured credit cards that you may get after a bankruptcy appears in your credit history.
Step 1
Have money on hand to secure a line of credit. Whenever you apply for a secured credit card, you'll be required to open an interest-bearing savings account with the credit card issuer. This money is used as collateral against the charges that you make. Depending on the terms of the credit card, the Federal Trade Commission notes that you may be able to charge an amount equal to 50 to 100 percent of your deposit. You may be required to make a deposit of a few hundred dollars -- or a few thousand.
Step 2
Study the credit card application closely to ascertain the finance charges and fees before you sign on the dotted line. Just like unsecured credit cards, secured accounts are subject to an annual percentage rate. Bankrate.com indicates that all secured credit cards will have a higher APR than that applied to unsecured credit cards, as well as higher fees. Additionally, you may have to pay an annual fee just for the privilege of using the credit card, according to the FTC. Some secured credit card issuers even charge a fee to process your application. Take careful notice of the late fees and over-limit fees that may be applied to your account balance as well.
Step 3
Make sure the credit card issuer reports to the three consumer credit reporting companies: Experian, Equifax and TransUnion. If the goal of acquiring a credit card is to rebuild your credit history after bankruptcy, you'll want to make sure that positive records of your debt management are reflected on your credit reports.
Step 4
Beware of secured credit card scams, warns the FTC. Earmarks of a dodgy credit card offer include those that guarantee that you'll receive a credit card or companies that make you call a 1-900 number to get more information about the offer (these calls are charged to you). Finally, secured credit card offers from credit repair companies or credit clinics are highly suspect.
Things You'll Need
- Cash to deposit with a secured credit card issuer
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