Credit cards can be a little daunting if you have recently filed for bankruptcy. The chances are high that overwhelming credit card expenses may have contributed to your filing for bankruptcy in the first place. Credit cards can, however, help to rebuild your credit following a bankruptcy, but only if they are used in the right way. There are credit card companies that prey on people with poor credit, so it is essential that you are able to identify companies that are trying to help you rebuild your credit as opposed to those who are trying to destroy it.
Subprime credit cards target consumers who have credit scores that are less than 600. Although they accept applications from those with low credit, they charge a higher interest rate, as well as maintenance fees, annual fees, authorized user fees and processing fees. You may get caught up with these fees that are added on top of your original charges and find it hard to pay down the balance on your credit card.
Secured credit cards, on the other hand, require you to put down a deposit before you are able to use the credit card. This allows the credit agencies to offset the initial fees, high interest rates and charges. By ensuring your credit card statement is paid in full each month, you can help to rebuild your credit. You can also ensure you will not become overloaded with credit card bills.
This information is intended to educate and should not be taken as legal advice.