The Best Credit Card After Bankruptcy

Establishing credit again is a primary concern of bankruptcy filers and with good reason. A good credit scores comes with lower interest rates on loans, lower rates for some insurance companies, and is sometimes used to screen applicants for jobs. Acquiring a credit card is one of the first ways to establish credit, but the best credit card after bankruptcy should contain several features.

It's of little use to have a credit card that cannot be widely used. Choose a credit card company with a nationally known name that is accepted at most businesses.

Even a secured credit card can be acquired without paying application fees. Be wary of credit card services that charge application fees as many scams exist to take advantage of people desperate to restore their financial health. The best credit card after bankruptcy is the one that does not come with an application fee.

Many credit card providers charge an annual fee in order for you to use the card. Reasonable annual fees are any amount $50 or less.  

It does you absolutely no good to acquire a credit card and establish a pattern of responsible behavior if that pattern is not reported to the credit bureaus. Make sure that the credit card provider reports all accounts, secured or unsecured, to all three credit bureaus. With every on-time payment, your credit score will begin to creep up, allowing you to eventually qualify for larger-ticket items such as purchasing a car. 

After filing bankruptcy, you may have trouble obtaining an unsecured credit card, but do not despair. Sometimes the best credit card after bankruptcy is a secured credit card. Essentially, you deposit a limited amount of money with the credit card provider and use the credit card against the available funds. When you've depleted the available funds, you deposit more funds and continue using the card again. Some credit card providers will convert a secured credit card to an unsecured card after you prove responsibility with the card.