Compared to many states, Maryland has faired the economic storm pretty well, but that does not mean Maryland residents haven't endured their own share of economic hardship. The housing market here was hit hard, unemployment rates increased, and other debt relief options, like bankruptcy petitions, were on the rise.

With more bankruptcy filings, people have the need to rebuild credit.

To respond to this growing need, Maryland residents will likely want to consider the best credit cards to use for rebuilding credit in 2012. For instance, one thing many people will want to avoid when rebuilding credit is a prepaid debt card. These cards often have hidden fees, but the biggest downfall is that they do not have the potential to improve FICO scores.

Maybe a more solid approach to rebuilding credit after a bankruptcy is a secured credit card. Larger banks can offer secured credit cards with low fees. The banks issue a line of credit that is backed by a security deposit that you leave in a CD. If you manage your account well, you not only build your credit but also get the security deposit back in the end.

There are many ways to rebuild your credit after a bankruptcy, but the important thing to remember is that it is possible. Bankruptcy can be a nerve-racking experience, and often people become stressed about the future of their credit and whether they will ever be able to buy a home. But bankruptcy is not the end of the world and can often provide much needed relief while debtors get their finances in order and look forward to a financial fresh start.

Source: Fox Business, "Best credit cards for rebuilding credit in 2012," Curtis Arnold, Feb. 13, 2012