It can be a challenge indeed to find the best credit card after bankruptcy. But, it’s not impossible if you have the right knowledge and know exactly what to look for in a good credit card.

Now, the first thing to look at is secured and unsecured credit cards. If you are applying for a credit card after bankruptcy, you first need to decide which type of credit card to make application for, be it an unsecured credit card or a secured credit card.

An unsecured credit card is card a bank or lender gives you where you don’t put any money down. When you use it, you are essentially borrowing money from a lender. A secured credit card is backed up by collateral of some sort – in most cases your bank account or a set deposit held by the bank against the credit limit of the card.

So, if you say deposit $1000 for a secured credit card, a bank will give you a credit card with $1000 limit on it. However, you must “pay” off balance you use on the secured credit card each month, ensuring that you always keep 1000 bucks on it.

This shows the banks you are serious about paying your debts and establishes you as a reliable borrower – essential if you want to qualify for any sort of loan or upgrade to an unsecured credit card.

So should you apply for either a secured credit card or an unsecured credit card after bankruptcy? The answer is, it depends. The best credit card after bankruptcy is really depends on what type of card you can secure.

If your credit history is good, then you won’t have a problem applying for and getting accepted for an unsecured credit card. These are always more desirable, since you don’t have to put a deposit to get one. The down side is that if your credit is bad, you will have serious problems getting one of these cards. Most people would agree that an unsecured credit card is the best credit card after bankruptcy. But it’s also the hardest to get too.

If you are trying to get an unsecured credit card after bankruptcy, you will face an even greater challenge getting one of these cards than someone with just bad credit, because your credit rating will have a big glaring “bankruptcy” mark on it – something that is sure to scare away most lenders.

Now, you may still qualify for an unsecured credit card going through a bank. You won’t know unless you try. But be prepared for a rejection. If you do get a credit card, expect a lot of restrictions and penalties. You won’t be getting the same deal as someone with good credit or even as someone with good credit but no bankruptcy.

You’ll have high interest, a reduce credit limit and other fees or fines. You may even have to pay a yearly fee. Rest assured though, these are all temporary measures – as long as you work on improving your credit score, these will be removed in time.

Now, if you cannot get a credit card though a bank, you can try getting a credit card for bankruptcy or a credit card for people with bad credit. These are many online lenders that cater to people with bad credit – you will stand a MUCH higher chances of scoring a credit card from these sources. I suggest you look online and visit as many bad credit lenders and see their terms for one of these cards.

However, keep in mind that you will pay sky high interest rates for these types of cards. But if you pay off your balance every month, you should be fine.

Now, if everything else fails, you can apply for a secured credit card. I won’t say these are the best credit cards after bankruptcy, but it’s a credit card at least. As long as you have the deposit to put down on the card, you are guaranteed to get one from a bank.

Take a look at these other bankruptcy hubs for more advice:

• Buying a House after Bankruptcy
• Getting a Credit Card After Bankruptcy
• Mortgages After Bankruptcy
• Buying a Car after Bankruptcy
• Geting a Bank Loan After Bankruptcy
• Getting Credit After Bankruptcy
• Buying a Home after Bankruptcy
• Personal Loans After Bankruptcy
• Home Loans After Bankruptcy
• Auto Loan After Bankruptcy
• Unsecured Credit Card After Bankrupcty
  

Keep in mind all you want to do is use these cards as a stepping stone to a better card. The best credit card after bankruptcy is an unsecured credit card, but these are tough to get. You just need some credit card to build up good credit for a year or so, and then you can qualify for a better credit card. The key is to build your credit score by just having and properly using a credit card. Once your credit is good again, you can get a normal credit card.