Searching For The
Best Credit Card After Bankruptcy

Finally it got to the point where I was playing the fools game. I had to start transferring balances from credit card to credit card to just keep up with my minimum payments each month. I lost my bad tenants in my rental house totally, they just up and left without any warning. Afterwards, I was attempting to do repairs on the rental property, I broke down. I realized at this point, I could no longer kid myself. I decided to take out bankruptcy.

At my first appointment with the lawyer, I had to gather all my financial information, choose which type of bankruptcy I would file, and learn about the repercussions of filing. It was a nerve racking experience. I got through it and chose to file a chapter 7 bankruptcy, where all my debt would be written off.

After I arrived home, I was required to pull a free copy of my credit report so I did not miss any accounts that I needed to include in the bankruptcy. I used www.annualcreditreport.com to download it right offline. At that time my credit score was 654, not horrible, but not great either. I had an enormous amount of debt, not including the mortgage on my primary residence, totaling over $140,000. I did not surrender my home in the bankruptcy, only the rental house and everything else.

Several months passed with visiting my attorney and going to court once during that time. Finally, I received my discharge papers in the mail in March of 2006. A month later I decided that it was time to start reestablishing my credit. I still had my home mortgage, which was a start, but I wanted more. I chose to apply for, what I now consider to be, the best credit card after bankruptcy, an Orchard Bank Classic MasterCard.

For the last year, I have charged small amounts on the credit card and paid it off in full each month. I've also acquired two additional credit cards since then, paying the second card also in full each month, and carrying a small balance on the third. Hesitantly, I decided to pull another copy of my credit report and credit score in December of 2006. To my surprise, my credit score turned out to be 630, only 24 points less than before the bankruptcy!

When searching for the best credit card after bankruptcy, you'll want to be selective about what credit cards you apply for. Follow these guidelines so you don't get too many inquiries on your credit report.

1. I would not suggest applying for an account through any credit card issuer that you had an account with before the bankruptcy, especially if it was included in the bankruptcy. I tried this with Capital One and, well, I didn't get approved.
2. You'll receive many solicitations by mail after your bankruptcy, watch out for unreasonable annual membership fees.
3. Finally, stay away from credit card issuers that don't cater to people with poor credit such as American Express and Citicards.

Throughout this experience, I have learned that credit is an important tool in life. If you take care of your credit, it will take care of you, allowing you to do many things that you could not do without it. Take the plunge, and find the best credit card after bankruptcy for yourself.