Do Secured Cards Really Help You Build Credit After Bankruptcy?

What is the best part of bankruptcy? Of course, if you’re still thinking about declaring bankruptcy you might feel like there’s never any positivity to be found with the process of bankruptcy, but the truth is that you actually have a good life after bankruptcy. Think about it — once you declare bankruptcy and go through the process, your bankruptcy is discharged and you never have to really go through bankruptcy again. You don’t have to worry about the debt collectors, and you definitely don’t have to worry about your wages being garnished. Yes, your credit score takes a beating temporarily, but there are ways to fix that. After all, you have to start rebuilding your credit somehow. You will have a clean slate to work with. Also, you might surprised at how well your new creditors will work with you even through you’ve been through bankruptcy. They realize that you cannot declare bankruptcy again for 10 years, so it means that you will have to pay your debts again.

So, the question today is really how can you build your credit quickly after bankruptcy? The answer is definitely secured credit cards — they are a perfect way to rebuild your credit after bankruptcy because you will come to a point that you have some savings. You can always pick up secured credit cards — they are open to anyone that can make the deposit.

Deposit? Well, we hate to burst your bubble but the truth is that you will have to get a deposit together in order to get a credit card of this type. The deposit can range from $100 all the way up to $500, but it really is better to drop in as much money as you can. That will give you the most credit line possible.

Just because you’re getting a new credit card doesn’t mean that you get to go crazy with it. As long as you start thinking about the things that you really want in life, you’re not going to go crazy with your credit cards. Isn’t that what really put you into problems in the first place? It’s better to think sensibly about credit cards.

It might seem like it’s hard to build credit with secured credit cards, but there will come a point where it’s very easy to move forward. You see, what you’re actually building is trust with your new credit card companies. You’re going to come to a point where you will show that you can be trusted with higher lines of credit. That means that you will have more credit power and also a higher credit score. [Continue Reading…]