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Credit Card For People With Bad Credit

Credit card after bankruptcy, secured or unsecured? There are credit cards for people with bad credit. First lets talk about why you need a credit card after bankruptcy. Wasn't the credit cards part of the reason I filed bankruptcy in the first place, you wonder? No, remember it wasn't the credit cards but rather how you used them. You need to get a credit card after bankruptcy if for no other reason than to begin to reestablish your credit but you want to get the best credit card for your situation.

Why do you need a credit card?

In the world we live in today it's pretty hard to get by without a credit card.
You may need one:

  • For emergencies
  • To rent a car
  • Book a hotel room
  • And many other things

Many of the things we do today require us to have a credit card to get by.

What is the best credit card to get, secured or unsecured? You are limited to these two choices for the most part. I say go for the secured credit card. Now why would I want to do that when I can get an unsecured card. I'm already getting the offers in the mail for unsecured cards and the ink isn't even dry on my discharge papers.

There is a very good reason for this. Let me explain.

  • The unsecured card will carry the highest interest rate and not provide you with the best terms.
  • The secured card will most likely offer better rates and terms.
  • A secured card will require you to make a deposit to secure it and now you have the beginings of a savings account.

These few things are why I say that a secured card is the best credit card after bankruptcy.

Personal finance management is what we are talking about here, the secured card will most always provide you a better deal that any of the unsecured cards that are going to be available to you after your bankruptcy. No one will know it's a secured card but you.

It should come as no suprise that there are companies that will offer you an unsecured credit card right after you have filed your bankruptcy. They know there is a huge market for them because they also know that many people associate a stigma with carrying a secured card. The key here is to get the best credit card after your bankruptcy. You will likely get offers for unsecured cards with lines of credit upto $1000 or maybe even higher. Don't fall for it. After you send in your application fee you will probably get a card back with a few hundred dollar limit. Hey, what happened to that $5000 limit they promised. Well, if you have a six figure income maybe you would get a $1000 or higher limit. It still would likely not be in your best interest. You don't need a card with kind of limit anyhow.

There several good companies out there that offer both secured and unsecured cards to consumers after their discharge. I will list a few of each here even though I am not a fan of unsecured cards for people with less than perfect credit because the cost is so high. I will offer each and you have to decide which one is best for you. Above all, make sure the card you choose will help you reestablish your credit.

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