Secured credit cards

Many bankruptcy debtors are worried about how they will rebuild their credit after filing bankruptcy.  One way is to obtain a secured credit card.  You must place a deposit equal to your credit limit with the credit card company to cover any potential defaults in payment.  However, as you make each monthly payment on time, the company should report this to the credit reporting agencies so that your credit rating will begin to improve.  If you are in a Chapter 13 bankruptcy, you should consult with your bankruptcy attorney prior to applying for a secured credit card.

For more about this topic read, “During Chapter 13 Bankruptcy, Secured Cards Tough to Get.”

Image credit: natloans