Are Credit Cards an option post-bankruptcy?

One of the major effects of bankruptcy is the damage to the person’s credit standing. However, if you've recently gone through bankruptcy, you're likely more eager than ever to rebuild your credit!  

So what are my options?

Unfortunately, after bankruptcy the options available to a person in terms of credit are few and not so flexible. So it becomes easy to accept these offers without giving it a thought.  

​The problem is that most companies offering post-bankruptcy credit cards are not really concerned about your financial well-being.

When choosing bankruptcy credit cards, look at the fees you have to pay. If there are more than two fees required, you may want to pass. Remember, you do not know how much your credit limit is and you do not want to find out when you get your card that you already have a high balance and little available credit due to the fees. Try to find bankruptcy credit cards without application fees and with a reasonable annual fee. 

Other factors that you have to look at in bankruptcy credit cards are the interest rates and charges for late payments or for going over the credit limit. While the options may be limited after bankruptcy and you cannot expect to get the same deal as a person with a good credit score, you do not have to pay more than what is necessary. 

There are reputable financial institutions that are willing to help you restore your credit.

Shop around, compare your options and be patient in your search. However, do not make the mistake of submitting your applications to all the credit card companies you are considering just to find out what their terms are. You can get information on the general terms of bankruptcy credit cards by simply inquiring with the different companies. Note that too many credit applications and credit checks will lower your credit score even more.

Of course, before you apply for bankruptcy credit cards make sure that card payments will not be a strain on your finances. It would also be good to start with just one or two bankruptcy credit cards (if any at all).

Once you have been approved for a credit card, read the terms and conditions carefully and ensure that you understand them completely before accepting the card. Try to keep the credit balance low and manageable. Again, timely payments are essential. Remember, bankruptcy credit cards are great tools to re-establishing your credit if you are responsible in using them.