Once your bankruptcy attorney helps you file for relief, your next concern will be to rebuild your credit. The quickest way of doing this is to obtain a new credit card and use it responsibly as a credit-strengthening tool. Fortunately, just getting a card after bankruptcy is simpler than you may think. This guide will help you develop a strategy for qualifying for credit and using your new card in a healthy way.

What Credit Cards Can You Qualify for After a Bankruptcy?

Secured Credit Cards

A secured line of credit is designed to help people rebuild their rating, and it’s often an option recommended by bankruptcy attorneys for this reason. The card is usually linked to a deposit made by the user, and this deposit is the credit limit. It’s a popular option because it offers no risk to the issuer and gives you the opportunity to display financial responsibility.

Even though it’s your own money you’re charging against, you’ll make monthly payments on the amount just as you would do with a traditional credit card. 

Subprime Credit Cards

Subprime credit cards are similar to secured cards in that you will be required to submit a down payment, but this type of card isn’t linked completely to a deposit. You’ll be charged higher rates and fees than other unsecured credit cards, and your credit limit will be low. As you develop a history of making your payments on time, your credit score will improve and you’ll be offered higher limits.

How Should Your Credit Cards Be Used? 

Now that you have an opportunity to rebuild your credit, it’s important to know how to use credit cards more wisely. Use your card only to make small purchases that you can easily repay, and do so before the due date every month. For instance, you might start out buying gas and groceries with the card but nothing else. As this discipline becomes second nature, a credit-building routine will be easily attained.

If you can’t repay what you plan to charge within the same billing cycle, don’t use the card. A good strategy is to charge a small amount and repay it, repeating this process each month to establish that you know how to handle credit. This will make you a good risk for lenders once again.

If you’re dealing with too much debt, the next step should be to consult a bankruptcy attorney to help you on your journey back to financial freedom. Ibold & O'Brien is located in Chardon, OH, and they’re backed by almost 40 years of experience. They’ll help you explore your debt relief options, so you can create a personalized strategy for reclaiming your financial future. To schedule a consultation, visit them online or call (440) 285-3511.