If you’ve recently filed bankruptcy, you may be wondering what you’re options are and if you can get a secured credit card after bankruptcy. You may not qualify for some loans, but if you get a secured credit card after bankruptcy you can rebuild your credit and get a good credit score before the bankruptcy even falls off the credit report.

What’s a Secured Credit Card?
Secured credit cards haven’t always been very desirable in the past because some don’t help you rebuild your credit. A secured credit card basically is a second chance card.

When you get a secured credit card, you have a savings account created for the card. The limit of the card is the amount of money in the account. You can not go over what is in the account. Payments are sometimes taken out automatically from this account.

Believe it or not, secured credits usually have a much better deal than an unsecured credit card. The limit is usually very low $200 or $500, but this will keep you from having a hard time being able to pay off the card. The bonus is that this limit will be raised with your credit score or several months of on time payments.

Getting the Card
When you go to get a secured credit card you should look at a few things before you apply. You should make sure that the secured credit care has no application fee and a reasonable annual fee. A lot of cards, especially the second chance cards, have huge up front and annual fees, and these might take up the bulk of your credit card. Paying on these fees don’t even count towards your credit score.

Make sure that the card reports to all three major credit bureaus. If you’re keeping up with your payments, but the card doesn’t report to these bureaus then you aren’t building your credit back up. And since the money you spend on your card is your own money anyhow, there really isn’t a point in a card that doesn’t report.

Ask if the card can be converted to an unsecured card if you’ve been on time with you’re payments after 12-18 months. Many banks will allow you to do this. It will just depend on the programs available.

Where Can You Get a Secured Credit Card?
Belonging to a credit union can help you getting a secured card. Every organization handles things differently so you need to ask if your credit union offers one. A bank may offer one as well.

You can also go to straight to a provider that has secured cards. There are plenty online to choose from, and you can fill out the application right over the Internet. Sometimes you will know after just a few minutes if you’re approved and sometimes you will have to wait for approval in the mail. Just make sure that you read all the fine print and know all the details before applying. Remember, just applying for a credit card affects your credit. So knowing the benefits and drawbacks are important.

Get Your Savings Deposit Back
If you’ve made all your payments on time for at least a year, you can then call the credit card company and ask if you can have your card converted to an unsecured credit card. They almost always say yes. You just need to make sure you haven’t had any late payments or an outstanding balance.

A secured card is a great idea for those coming out of bankruptcy. They allow you the freedom of having a credit card, and allow you to begin to rebuild your credit. Just be sure you are looking closely at the different programs available to ensure you are choosing the best card for your needs.