Select a Card

• Start repairing your credit by applying for a credit card that reports your payment history each month to the three major credit agencies: Experian, TransUnion and Equifax. There are two types of credit cards: secured and unsecured. A secured card requires an applicant to open a savings account with a balance that ranges from a few hundred to thousands of dollars. Your credit line for a secured card is a percentage of your deposit -- usually 50 percent to 100 percent. An unsecured card doesn't require an account. If you choose a secured card, verify that it reports to the credit agencies.
  
  

Read the Fine Print

• It's important to understand all the terms of your card, which means reading the card contract in entirety, including all the fine print. The annual percentage rate on cards available to people with poor credit likely will be higher. The APR is the measure of the cost of credit and is expressed in a yearly rate. Usually secured cards have a higher APR and annual fee than unsecured ones. Many credit cards also have application and maintenance fees that can range from $25 to more than $100. You should also look at the card's fee for going over your credit limit and the balance transfer fee if you intend to transfer the balance of one card to another.
  
  

Start Small

• When you're trying to reestablish your credit after bankruptcy, start slowly. Look for a credit card with a limit of $200 to $500. You don't want to get in over your head again; by starting with a lower limit, you can determine how much you can afford to charge and repay each month.
  
  

Pay Off or Pay Down Your Balance

• A person's credit score is based in part on his debt ratio and credit payment history, and potential lenders look at both of these factors when considering whether to extend a line of credit. Generally lenders prefer borrowers aren't using more than 30 percent of their credit. For example, if you have a card with a $500 limit, you should try not to owe more than $150 on it. Paying your balance on time demonstrates that you're responsible and proves that you're not overextending yourself financially.