People who have filed for bankruptcy are often aware of the impact it can have on their credit report. Once the bankruptcy is discharged, it can be challenging for debtors to find ways to rebuild their credit. Some credit card companies focus their efforts on enrolling people who have filed for bankruptcy, highlighting the benefits that having a credit card can have when rebuilding credit and increasing their credit score. It is important that debtors are aware of the dangers certain credit cards bring, as they may lead them into debt even after they have filed for bankruptcy.

Subprime credit cards allow people with poor credit scores access to a credit card. Due to their low credit score, however, the companies charge inflated fees, high interest rates and other expenses in an attempt to offset the risk of issuing the credit.  People may not understand what they are getting into when signing up with these companies. While having a credit card and paying off the balance each month can often help credit scores to climb, it can be difficult to pay off balance when a myriad of fees, including maintenance fees, processing fees, authorized user fees and annual fees, are applied.

Instead, people should opt for secured credit cards, which do not charge the additional high interest rates and fees. There are also cards that prompt people to pay funds into the account up front, which help to avoid the fees as well. Furthermore, it is important that people understand the terms before signing up for any type of credit card.