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My bankruptcy was finalized and I am looking for a card to rebuild credit. But I don't want a secured credit card, where I have to put up my money.

By , CardRatings contributor
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Q: I saw this website mentioned on CNNMoney and would like more information on a credit card for those who filed bankruptcy. Mine was finalized August 2011. I am looking for a card to rebuild credit. But I don't want a secured card, where I have to put up my money to open it.

A: You're right that a secured credit card requires you to pay cash up front for a credit line. After bankruptcy, you may find that certain credit card issuers are willing to offer you a regular unsecured credit card - mainly because these credit card companies know you aren't eligible to file for bankruptcy protection again for years.

Since your bankruptcy was recently discharged, you may actually find that certain credit card issuers are willing to offer you a regular unsecured credit card - mainly because these credit card companies know you aren't eligible to file for bankruptcy protection again for years.

The Capital One® Platinum Credit Card is one of our recommended cards for people like you. Unlike some credit cards that require you to have excellent or very good credit, this card is for people with average credit. One drawback of this card, however, is that it has a higher-than-average variable interest rate for purchases. It also imposes an annual fee, however they have an introductory annual fee of $0 the first year and after that the annual fee is $19. Overall, this card is a good option given your credit history.

Believe it or not, now that your bankruptcy is behind you, you may fit into the arena of "average" credit - not "bad" credit. This is for two reasons: First, your bankruptcy has wiped out any credit card bills you may have had. And the amount of credit card debt you're carrying makes up 30 percent of your FICO credit score.

Second, after a bankruptcy, your credit score is calculated in part based on your credit behavior versus a pool of other similar consumers. In other words, you're now being compared to other people who've filed also for bankruptcy protection. This may sound bad. But actually it's a good thing.

If you can distinguish yourself among the crowd, so to speak, you actually stand a better chance at more quickly raising your credit score. How can you "stand out" from other bankruptcy filers? Simply put: pay all your bills on time and practice good credit habits.

Rebuilding your credit with a single credit card like that Capital One card can help because it will show lenders (and the credit-scoring gurus) that you can handle credit now - even though you had trouble doing so, for whatever reason, in the past.

 

 

 

 

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