Q: I filed Chapter 7 bankruptcy a few months ago. I'd like to rebuild my credit. Which credit card would you suggest and why?
Recent federal rule changes did away with the worst practices in the industry, but it's still hard to find real value among credit card offers after you've survived bankruptcy. That's why we highlight a viable option from our CardRatings.com credit card database:
Public Savings Bank Open Sky Secured Visa Credit Card. Right now, it might feel frustrating to lock a few hundred dollars into a savings account that you'll use as collateral against a low-limit Visa card. But it's truly for your own good. PSB enjoys one of the best reputations among secured card lenders, reporting your positive trade line to all three credit bureaus, so you can work on improving your credit score right away.
Since you filed Chapter 7, you won't be able to discharge any more debts for at least 7 years. Therefore, make sure you don't take on more credit than you can reasonably pay back, unless you're ready to risk some significant fines and finance charges.
- Will going from a secured credit card to an unsecured credit card improve my credit?
- If I just filed for bankruptcy at the beginning of the year, when can I get another credit card to start building back my credit?
- I am looking to establish good credit so I can buy a home for my family. What kind of credit card should I start out with?