Bankruptcy is a great option if you are being haunted by old bills you can't dig your way out from under.  However, once you go through a bankruptcy, you will need to work hard to rebuild your credit. Most credit card companies won't approve you for a traditional credit card when you're fresh out of bankruptcy, but they will give you a secured one. Learn how a secured credit card can help you rebuild your credit score in this article.

Easy qualifying – There are some credit card companies that give a secured credit card to just about anyone who's willing to put up the necessary funds. This means you won't have to repeatedly ding your credit only to continue to get turned down. Every time your credit is run, it can cause your score to lower. This can be a problem when you are trying to rebuild your credit.

Credit agency reporting – Even though a secured credit card is backed by your own money, the credit card company will still report to the credit monitoring agencies each month letting them know you have been making your payments on time.

It's manageable – Since your secured credit card will be backed by your own money, you'll be more aware of your limit. You won't have to worry about carrying an unmanageable monthly balance which can cause you to quickly get in over your head.

The same companies offer them – Most secured credit cards are offered by the same companies that offer unsecured cards. They report in the same manner and on-time payments will show on your report with the same validity as an unsecured card.

Limits can increase – Once the credit card company sees that you are continuing to keep a healthy balance on your card and that you have developed a proven track record of paying more than the minimum on your account in a timely manner, they can decide to increase your limit. When they increase your limit, your card will be unsecured for the amount of the increase and remain secured for the rest.

A bankruptcy attorney, such as Curtis H. Hatfield Attorney At Law, may have more advice for you regarding other things you can do when you come out of bankruptcy to increase your score. Now that you understand the benefits of a secured credit card, you'll want to do your best to get one so you can start repairing your credit score quickly and with very little hassle.

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