People seem to think if you declare bankruptcy, your chances at getting any sort of credit are gone for life. But this is actually not the case. Bankruptcy leaves a permanent mark on your credit history and it knocks your credit score down to the ground. But, you can still fix your credit in time. Getting a credit card after bankruptcy can be tricky though.

Look Online and Apply for a Bad Credit Card

Now there are many ways to get a credit card if you have declared bankruptcy. The easiest way is to apply for a bad credit card, or an after bankruptcy credit card from various online credit card companies. Take a look around on the web and visit these companies’ websites to get more information. It’s always good to inform yourself what’s out there so you can get the best deal.

Get an Unsecured Credit Card After Bankruptcy

You may also still find yourself getting credit card offers in the mail – even if you have recently declared bankruptcy. Or, you can visit a bank or online credit card vendor and apply. You may get accepted. But, you need to be aware of one simple fact: you will be paying HEAVY interest with these types of cards. Don’t think they won’t know about your bankruptcy. They do and you will be paying because of it. Literally.

This is because credit cards determine their customers’ interest rates depending upon their credit history. The better your credit, the less you have to pay. Since you have bankruptcy on your record, you run a much higher risk to the credit card companies. As such, they will charge you higher interest. You could end up with an interest rate as much as 5% higher than normal.

Keep in mind though that as high as the interest rate is, if you pay off your credit card balance, it doesn’t matter.

You should be aware that you may face additional fees with an unsecured credit card if you have declared bankruptcy. These fees could be an annual 30-40 dollars a year fee for having the credit card. Other fees such late fees and credit card cash loans will be higher as well. Credit cards may apply additional penalties to your transactions and give you more stringent terms.

Get a Secured Credit Card After Bankruptcy

If you can’t get an unsecured credit card, you are going to have to get a secured credit card. You can apply for one of these at your local bank. The way a secured credit card works is that you must pay a deposit onto the card – usually either 500 or 1000 dollars. This deposit becomes the “balance” of the credit card. You then use the credit card as a normal card, paying off whatever you spend each month.

A secured credit card is a great way to start rebuilding your credit history. Since you are putting down money on it, you are guaranteed to get the card when you apply. The down side is that many people don’t have an extra 500 to 1000 dollars to spare.

Now, if you prove you can make monthly payments on your secured card for a year or so, the bank will upgrade your secured card to an unsecured credit card and you’ll get your deposit back. You may also find that if you make regular payments, the credit card company may increase your “maximum” limit to higher. You basically have to prove you are a credit worthy customer.

Check out these related hubs for more bankruptcy and bad credit advice:

• Getting Credit After Bankruptcy
• Getting a Loan After Bankruptcy
  
• Getting a Mortgage After Bankruptcy
• Buying a Home After Bankruptcy
• Personal Loans After Bankruptcy
• How to Declare Yourself Bankrupt
• How to Stop Foreclosure On Your Home

You can indeed get a credit card after bankruptcy, but you are going to pay for the privilege. This could be through higher interest rates and more stringent penalties if you get an unsecured credit car. Or, you may have to pay hundreds of dollars as a deposit on a secured credit card. As long as you realize there are some penalties associated with getting a credit card after bankruptcy, you can begin to restore your credit with a credit card.