Your immediate reaction to my suggestion to get a secured credit card might be “Why should I get a secured card instead of an unsecured card, when I’m getting offers for unsecured credit cards left and right?” Secured credit cards have gotten a bad rap, because most don’t help you rebuild your credit history. That’s why I am always very selective in researching the credit cards I include in this book – to make sure that all the cards listed in this book are working for you and not against you. When you use one of the secured credit cards I’ve listed in this book, no one else will know that the credit card is secured except you. Financially, secured credit cards offer you a better deal than any of the unsecured cards you’re likely to run into after your bankruptcy.

Below, I’ve listed a few of the unsecured cards to avoid at all costs, and the reasons why they’re bad for you.

X First Bank of Delaware’s Continental Finance MasterCard®. This card charges you a low $49 annual fee, which sounds real nice. But they also charge you a one-time account set-up fee of $99 plus a one-time program participation fee of $89, and an annual account maintenance fee of $120 ($10 a month). By the time you get your card, with the initial $300 credit limit, all you have available on your card is $53. And you’re paying interest on any of the $247 you don’t pay off in full immediately. And I didn’t even mention the 19.92% interest rate they charge.

Another First Bank of Delaware card to avoid is the Tribute MasterCard®, which has a whopping $150 annual fee, an account opening fee of $29 and a monthly maintenance fee of $6.50, which comes to an additional $78 per year. Your initial credit limit is $300. So, even if you never charge a thing for one full year, you’ll be paying out $257 (and $228 every year from then on), just for the “privilege” of having a credit card.

X First Premier Bank, Platinum Card. This card charges you a $29 set up fee, a $95 program fee, a $48 annual fee and a $6 monthly participation fee (another $78 a year). Your initial credit line will be $250. Subtracting all the fees, you’re being charged that entire $250 and paying interest on that amount, until you pay the entire $250 off in full. And you haven’t bought a single thing! At least with a $250 deposit in a secured credit card account you get your $250 back at the end of it all.

There are even more reasons I completely dislike First Premier Bank’s cards. Anytime your account is reviewed and your credit limit is increased, they charge you another $25 for the privilege –even if your credit limit is only going up by $100! They also charge you $3.95 to access your account through the Internet. They charge you $11 if you pay your bill through an automatic draft. And if you request to make your automatic payment over the phone or Internet, they tack on an additional $7 each time. Getting out of this nightmare is just as pricy. If you close your account and it has a balance of more than $20, they charge you $3 a month! First Premier Bank also issues these other so-called “unsecured” cards, so watch for offers from these cards: Centennial MasterCard®, Centennial Gold MasterCard®, and First Premier Bank Gold MasterCard®.

X Capital One’s Clear “E-Duction” MasterCard®. This card seems pretty user-friendly. There’s a low $29 annual fee and the card is offered at 0% interest. Whenever you charge something to your Clear credit card, the amount of the charge is automatically deducted from your paycheck over a two month period, interest free. This works great if make a one-time charge, for something like a $200 car repair. If you’re paid every two weeks, then $50 would be taken out of each of your next four paychecks. So far, so good.

Imagine, though, that your car repair costs $800. Now you’re having $200 taken out of each paycheck. Depending on how much you earn, that’s a pretty hefty chunk of your paycheck. And what if you charge other items during that two month period? Before you know it, a large portion of your paycheck may be gone before you even see your pay stub. As a result, you may find yourself struggling to pay your regular bills. And if your minimum payment due winds up being higher than your paycheck, the friendly 0% interest jumps to 14%. The rate jumps to 25.99% if you try and take control of your finances by closing your account or removing your authorization to have your payments automatically deducted from your paychecks. The same thing happens if you leave your job. A card like this, in my mind, isn’t much better for you than a payday loan, even if it does report your payment history to the credit bureaus.

Do-It-Yourself Checklist for Selecting a Good Credit Card

As I mentioned earlier in this book, I really didn’t want to have to write a fourth edition of Bounce Back From Bankruptcy. I finally decided that if I was going to take the time to write a fourth edition, I was going to include every essential detail I could think of to empower you to take control of your finances – and make it so I would never have to write this book again. To accomplish this, I’m including all the in-depth research techniques I use to analyze credit card offers so you can do the same for yourself.

First, call the creditor’s 800-number and ask....