2 CAN DO: Get New Credit after Bankruptcy

If there is one thing you can count on in todays competitive lending environment, it is that credit is always available, even to the recently bankrupt.

The catch?

Credit may be more expensive than before and available with lower limits. But all that is secondary only to the fact that credit does exist and you can get it.

One of the easiest credits available to the recently bankrupt is a secured credit card. As opposed to an unsecured credit card, in a secured card, you must make a deposit of a certain amount of money in exchange for a card that you can use just like a regular credit card. Your credit limit is equivalent to the cash deposit you made.

Now, the good thing about a secured credit card is that it is usually available post bankruptcy at lower rates than unsecured cards.

Whats more, the fact that these credit cards are secured are not often indicated in your credit report so creditors have no way of knowing whether your credit card is secured or not. All they will see is that you have been approved for a credit card, which ups your credit score a bit and puts you back in the game fairly quickly.

Note, however, that credit experts are not quite in agreement concerning the impact of secured credit cards on your credit rating. So if you do decide to open a secured credit card post bankruptcy, be sure to do it slow.

While your rush at rebuilding your credit is understandable, making mistakes that could significantly affect your credit score like this is not worth it.

Rebuilding your credit worthiness after bankruptcy is a matter of getting a toe-hold in the world of credit. The balance is often precarious and needs delicate treatment. Use credit cautiously and pay on time.