Credit Cards after Bankruptcy. For the millions of people who have filed bankruptcy these last few years, their world did not end, nor did their financial existence. Most people forge ahead to put the pieces of their financial life back together, and many go on to lead even more prosperous lives.

The reality is that, if you take the lessons learned and apply them with the right attitude and the right strategy, you can change your financial life for the better.  The key is to take full advantage of your “new beginning” and avoid the mistakes of the past. For most people, that begins with a sound credit card strategy.

In addition to budgetary control and goal setting, re-establishing credit is the key to post-bankruptcy financial planning. While you certainly shouldn’t be going out charging up credit card debt, credit cards can play an instrumental role in cash flow management, budgeting, emergency spending and credit repair.

So, it is important not to shy away from trying to obtain credit cards. It is even more critical to do so strategically and carefully so it doesn’t put you back where you started.  Before you move down the path to obtaining a credit card, it is important to understand the myths and realities of credit cards after bankruptcy.

Credit Cards after Bankruptcy – Myths and Reality

Myth: People who file for bankruptcy can’t qualify for credit cards.

Reality: Many people begin to receive pre-approved credit card offers within three months after their discharge date.

Myth: Credit card fees in post-bankruptcy offers can be exceedingly high, as much as 50 percent of the credit limit offered.

Reality: While that is true, you may see some offers with more reasonable fees, such as $75 a year.

Myth: The interest rates charged are exceedingly high, as much as 30 percent.

Reality: Again, true; however you may also see offers for more reasonable rates around 14%. You may even see some 0% offers but be sure to read the fine print on how and when it can change.

Myth: The best post-bankruptcy option is a secured credit card.

Reality: That may be so for some people, especially if they can’t qualify for a regular credit card.

Myth: Banks will take advantage of people who are desperate for credit by charging excessive fees.

Reality: Actually, with all of the limitations placed on banks in charging high interest rates, they are finding ways to increase fees on everybody. For example, creditworthy people are starting to be charged for inactive accounts.

There is no reason to fear credit cards after bankruptcy. In fact, it is a great opportunity to finally take control of your credit card; you just need to remember their purpose in your new financial life.  They can be an excellent tool in managing your budget, as long as you pay the bill in full each month.

You shouldn’t have to worry whether a card charges an excessive interest rate because you will never carry a balance.  You may end up paying a hefty fee (try and hold off for a more reasonable offer), but that may be the price you pay for your new beginning.