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Is a credit card a good idea to build credit after bankruptcy?

I have an unsecured $250 limit card that I got to re-establish my credit after my discharge. Problem is these cards are full of fees and monthly dues but they do report to all 3 bureaus which is good. Am I going to be on the same situation no matter who gives me a credit card as far as fees and high interests? I wonder if a secured credit card would help me better? Any suggestions?

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9 Responses to “Is a credit card a good idea to build credit after bankruptcy?”

  1. Lady Gaga's Secret said :

    No. You’ll probably just screw it up again.

  2. wiseman/guru said :

    Surprises me, you got a card after declaring bankruptcy. Here (RSA) you’ll have to pay CASH for the next seven years.

  3. sassy25 said :

    That is the only card you are eligible for so stick with it. After 6 months you could try for a WalMart or Target card.

  4. SPIFIMAN1 said :

    Stick with it. I went through the same thing back in 2001 and used 3 sub-prime credit cards with huge fees and interest rates to reestablish my credit. I always paid them off in full every month to avoid the interest.

    Was it worth it, without a doubt after 12 months I got approved for much better cards and after another 12 months I had raised my score over 150 points allowing me to purchase a new car and a home with no money down and at great rates.

    Today all of my scores are well over 800.

  5. Christi B. said :

    No, no, no! These people are WRONG! There are alternatives to those monthly program fee type of cards! There are real credit cards that you can get after bankruptcy to establish credit, the kind that have no fees except the standard annual fee.

    The type of card you have now must be something terrible like Tribute, First Premier, or Credit One. You don’t want those cards.

    These banks are large, well-known banks that give credit cards to people in your situation. Try Orchard Bank at, or Household Bank (also called HSBC) at Sometimes people have luck at Capital One after bankruptcy as well.

    The Orchard and Household cards are the best ways to re-establish your credit. Just be sure to use them responsibly and pay on time.

    Good luck to you!

  6. YSIC said :

    Going with such cards is a necessary evil, I’m afraid. Oftentimes, these types of cards are the only ones who will extend credit to those who have recently filed for bankruptcy. You can always check to shop around for cards who might have an annual fee (instead of monthly!) and lower interest rates.
    Secured credit cards can be just as taxing on your money, so shop around. Make sure you pay on time 100% of the time – that will help your scores bounce back. Do this for at least 24 months.
    Also, watch your balances. Don’t borrow anywhere near your total available limit. Only borrow 30% or less than your total line of credit.
    I would definitely start off with a credit card first. Try to avoid a car loan – wait at least until you have your 24 months of a good track record behind you. You will see a better interest rate that way.

  7. Dark Green Money said :

    Map out a plan. This card is either on that plan or not.

    Available credit = I’m heading back bankruptcy in 7.5 years. = step slowly away from the cards.
    I reaf’d my car and my student loan (both of which show positively on my credit) = don’t bother with high fee cards
    I have zero post pet. debts. I need to rebuild somewhere = acceptable cost until I get approved for a big girl pants card.

    Remember 30% x $0 = $0. Pay your balance in full each month.

  8. debtairraid said :

    That’s a great question! Let me offer you a slightly different perspective. The nasty little secret about credit scores is that they continually require that you be in some sort of debt. Instead of focusing on how to build your CREDIT SCORE (also known as “how worthy am I to borrow money and make payments to someone”), why not focus on building your NET WORTH (also known as “how much wealth have I accumulated in savings and assets”).

    Check out these two great videos from financial expert Dave Ramsey. You’ll be amazed at the amount of useful information you’ll find. Hey, good luck out there! I wish you much success!

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