Filing bankruptcy is not the worst thing in the world and it does not have to be the final straw with your financial well-being either. If you have found yourself in a position that you have no other avenue to pay all of your past due bills, bankruptcy may be necessary.

The number of bankruptcies that were filed in 2007 jumped almost 13% from the previous year, according to the Administrative Office of the US Courts. The statistics compiled so far for this year looks even more dismal. If you are one of the many Americans that have had to turn to bankruptcy and think that you will never be able to obtain credit again, you may want to think again.

Following your bankruptcy discharge, the time frame will differ among each credit card issuer; however, they will start mailing you credit offers once again. Some of the offers might be worth your interest, but others will definitely be unwise in order to recover your credit.

Depending upon each individual issuer of credit, you could be facing high interest and huge fees, along with low credit limits. Expect to pay the price for a while, at least until you get your feet back on the ground and your credit standing stabilized. There are also secured credit cards that report your payment history to the credit bureaus. They are basically funded by you, with your own money, and given a credit card that works like a debit card. These types of companies that offer secured credit cards sometimes charge high fees for the use of the provided plastic card.

Try not to apply for too many credit cards at one time, because this will rack up inquiries on your credit report, furthering your bad situation. Also, research the card very carefully and read the fine print, even if you have to get out a magnifying glass. Many of these bad credit card companies will charge up to five separate types of charges, some monthly and some will be annual fees.

Rebuilding your credit and gaining the credit score that will qualify for the better credit cards won’t happen over night, but it will be worth the time. Once you have established that you are, in fact, creditworthy and responsible about paying your debts, it will become much easier to obtain credit and further financing. Applying for an auto loan or mortgage will be easier and less stressful when you know that you have gotten yourself and your finances in order, as well as your credit score on your credit report.

For recent filers of bankruptcy, it will be more advantageous to either live without using credit altogether or apply for and use the high interest cards in which they can qualify. It stands to reason that the better credit card offers should not even be attempted, because it will entail a high amount of inquiries on your credit report. Although, you still have a possibility of getting turned down for one of the bad credit cards, there would be a better chance to regain the use of credit and to fix a bad payment history on your credit report.

Graph Credit: CreditSlips.org

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