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Added October 4, 2010 from: Mike Killian
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 Mike Killian
Answered By Mike Killian:
Considering you just filed bankruptcy it does sound like a decent choice. It does not sound like you were required to get a secured card (but more about that in a moment). What I am concerned with is the $49 annual fee, but under the circumstances, it is not unreasonable. Be cautious, however, once the promotional zero percent interest expires and the higher interest rate kicks in.

The reason I brought up a secured credit card is that a secured credit card, or any secured debt for that matter, is the one of the fastest ways to rebuild credit, and with a recent bankruptcy, that could be a real advantage for you. For that reason alone you might consider getting one. You can go to any local branch of a major bank; most of the bigger banks offer a secured credit card program. If they do, they will have you open a savings account with $250 or more and then they'll issue a credit card against your savings. The important feature of this type of card is that payment history is normally reported to the credit bureaus monthly, so make sure any card you are interested in will report.

Because more than one third of your credit score is based upon on-time payment history, a monthly report of a secured debt paid consistently on time is very valuable and is the fastest way to rebuild your credit. And rebuilding a credit score after your bankruptcy should be the most important issue in your finances right now. The bottom line is never be late with any payment as this will be like pouring a bucket of ice water on your credit.

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