After going through the process of filing bankruptcy, it is easy to have a range of emotions about credit cards. First, it is easy to view credit cards as the evil that caused the bankruptcy in the first place. Even if the reason for the debt was due to the lose of a job, or an emergency where cash and supplies was needed, it is a normal response to never want to use credit cards again.

Then, after getting through the initial disgust with credit and credit cards, the feeling changes to concern. It is easy to be reminded that our modern lives are very difficult without at least one credit card.

Well, the reality is that people can get credit cards after a bankruptcy. In fact, there is an entire segment of the credit card industry that actually seeks out individuals with credit problems. The only problem that individuals with credit issues have is sometimes finding those companies that will give them credit cards. As with so much else, it is having the right information that can separate a person from having access to credit to not having credit at all.

Orchard Bank/Household Bank

In order to qualify for one of these cards, you typically need a household income of $12,000 per year, a household phone, and a valid social security number. In addition, if you have recently filed for bankruptcy, the bankruptcy usually must be discharged for at least 6 months.

With the Household Bank/Orchard Bank Mastercard, you will usually receive an initial credit limit of $300 to $500. The card will typically not come with a monthly membership charge, but does have a yearly charge of around $75.00 to $80.00.

The great thing about this Mastercard is that you are eligible for a credit limit increase after 6 months of having on-time payments, and not going over your available balance. In addition, Household Bank/Orchard Bank will report your payment history to the three major credit bureaus. So, after using this card successfully for 6 months to 1 year, you will raise your credit score, and your ability to get other types of credit cards.

Now, the downside of this card: the interest rate. As you probably have imagined, a card that is marketed toward individuals with credit issues is going to have a very high interest rate. In fact, the interest rate on this card usually varies from 18% to 21%. Of course, if you ever miss a payment or are late on a payment, then the interest rate increases to about 25%.