Repairing Credit After Bankruptcy - The Best After-Bankruptcy Credit Cards

By Carrie Reeder
Tip! Avoid making late payments. This is primarily due to the late payment fee that will be applied to your account but also because every late payment will count as a point against you in your bid to get a higher credit limit.

Your bankruptcy is finalized, and now you're ready to start rebuilding your credit. The best way to do this is by applying for small amounts of credit first, so you'll want to get a credit card; however, you don't know what credit card to choose. This article will explain the best after-bankruptcy credit cards you can get in order to rebuild your credit and stay out of debt:

Secured Credit Cards

The best way to avoid bad debt is to gain credit from your own money. A secured credit card allows you to deposit money into an account and then withdraw it just like you would with a regular credit card. The difference between an unsecured credit card and a secured credit card is that you deposit the amount of money that makes your maximum balance into an account before you begin using it. This means that, if you become unable to pay the bill, you can simply close the account and withdraw the remainder of your balance.
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Gas Station/Grocery Store Credit Cards

Gas station and grocery store credit cards are not hard to get approved for; in fact, they're probably the easiest to get of all unsecured credit cards. The best thing about applying for a grocery store or gas station card is the lowered temptation to make an unnecessary purchase. Most likely, you shop at these places every week and pay with either cash, check, or a debit card. Instead, you can pay with your store credit card, and then, at the end of the month, you can take the money you would have spent at the store and use it to pay down the balance on the card.

Credit Cards Specifically for Rebuilding Credit

Most reputable lenders offer credit cards to borrowers who need to rebuild their credit that are designed specifically for that purpose. You can expect to be charged high interest rates, and you'll most likely have a low credit limit; however, in turn, the company will report your payments to all three credit monitoring bureaus monthly. Additionally, once you've established a good payment history with the company, they'll likely lower your interest rate and raise your credit limit. Here is a list of recommended Personal Loan Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
Tip! Compare the debt consolidation loan programs that each lender can offer. If you have a very poor, low credit score like 450, 480 or 500 - your loan will be a subprime debt consolidation loan.

Before applying for any credit card, do your research. Utilize the internet and compare interest rates and terms. Don't apply for a card with high interest rates and annual fees if you can get approved for a card with a better interest rate and no annual fee. Pay your bills on time every month. If anything looks worse than a bankruptcy, it's a bankruptcy followed by bad credit.
Tip! Routinely check payment history and the current credit debt held.

If you're interested in rebuilding your credit and want a Poor Credit Personal Loan, check out ABC Loan Guide's free listing of reputable lenders. There are also related links for more information about Subprime Mortgage Lenders.