Going through a bankruptcy is a devastating state of affairs for many families, but afterwards there is also the relief of being released from the responsibility of paying the debt you had previously carried. One concern and question that people may have after completing this process is how to get a credit card after bankruptcy. Getting a new credit card is not always easy, but it is not impossible either. When the bankruptcy has been discharged it is important to reestablish and rebuild your credit score. The sooner you do this, the sooner your life can become stabilized again. One of the first things to do is to get a copy of your credit reports so you can manage the process of cleaning up any inaccurate entries on your credit history. If you assume that your credit report is accurate or if you wait for negative entries to fall off by themselves it could be years before your credit score begins to rise again.

A side effect of filing for bankruptcy is that once you have been discharged of your past debts, credit card companies begin to view you similar to a person who is building credit for the first time which has its pros and cons. Since the goal is to get a new credit card, it is important not to jump at or apply to every offer you receive. It is more important to plan what type of card you want to apply to first and still be able to get decent interest rates, terms and minimal fees. Comparing your options, providers, offers and fees will help you to avoid any credit card scams. http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BounceBackFastAfterBankruptcy.aspx http://www.bankrate.com/finance/debt/life-after-bankruptcy-1.aspx

To rebuild your credit score so you can get the best credit cards with the most desirable rates and terms sooner rather than later, it is important to clean up your credit report and have any inaccurate entries or errors on your credit history removed. To do this you will need to get your credit reports from all three of the major credit reporting bureaus, Equifax, Experian and TransUnion.

Per the Fair Credit Reporting Act, these national credit bureaus are required by law to provide you with a free annual credit report. You must request your free report from each of the three credit bureaus, as they will not automatically send them to you. This is a critical step because often a person's credit report will contain errors that will continue to hold down the credit score. It may show overdue accounts and debts that were already charged off through the bankruptcy, but still show as an open debt account. Your credit score is based upon what shows up on your credit reports, accurate or not, so inaccurate negative entries need to be removed if you ever hope to improve your credit score back into the good credit status. http://www.ftc.gov/os/statutes/fcra.htm

The first type of card to consider getting is a secured credit card. This type of card is guaranteed issue because it is secured by an amount of money that you first put into a deposit account with the bank, credit union or card issuer. You will be required to put up an amount of money, as collateral for the card, which typically will be the amount of your credit limit on that secured card. For example, if you were to deposit $500 into the account, you would generally have a $500 charging limit on the card. You will still be required to make monthly principle and interest payments on any card balance. It is important that you make your monthly payments on time, as the credit card issuer will be reporting your credit history to the credit reporting bureaus and this is one critical component of rebuilding your credit. You can contact local banks and credit unions in your area to find the lowest fees and interest rates. If you maintain good credit habits with this secured credit card account, the bank or credit union may allow you to convert your account to an unsecured credit card account after six months to one year. http://www.bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

A pre-paid credit card is a card that has a predetermined amount of money deposited and stored onto the card itself. One disadvantage is that it does not help to build any credit because the value of money that is stored on the card was paid by you and there is no credit extended. You can get this type of card without a credit check which may be helpful for some people. With a pre paid credit card you will be able to purchase items at stores just as if you are using a regular credit card, the difference is that there are no monthly payments or interest charges because the money being spent is the money that you put on the card.

When all of the money is gone you will have to deposit more to your pre-paid account before you can use the card again for expenditures. While it does not have all of the benefits and features of a full fledged credit card, it does allow you to spend and buy items as if it were a credit card. If this type of card appeals to your needs, it is important to shop around for the lowest card setup rates and additional deposit fees. http://www.bankrate.com/finance/credit-cards/10-questions-before-getting-a-secured-credit-card-1.aspx

The third type of account is an unsecured credit card, which means it is not backed by any collateral, only your credit rating. It is unlikely that a person will be able to get approved for an unsecured account immediately after a bankruptcy, and if one could, the interest rates and fees attached to the account are sure to be very high. However, it will not be long before you will start to receive credit card offers in the mail soliciting for an unsecured card. The first offers that start coming will have terms that are probably not the most desirable and if you start applying for every offer that comes in, it will appear as desperation. One plan of action would be to get the secured credit card and make sure that you maintain responsible credit paying habits. Then in six months to a year you should be receiving offers in the mail for unsecured cards with more favorable interest rates and terms. Either take one of these or ask your current secured account holder to transition your current account to an unsecured card account.

So to make sure that you get a credit card after bankruptcy with the most desirable interest rates and terms, follow these steps and maintain good credit habits and you may be surprised at how quickly you will be able to reestablish your credit worthiness. http://www.finweb.com/banking-credit/how-to-get-an-unsecured-credit-card-after-bankruptcy.html http://www.bankrate.com/finance/debt/life-after-bankruptcy-1.aspx