It sounds like a recipe for disaster, approving a credit card for someone who has just been made bankrupt, but that is just what a number of companies are making it their business to do.

With the number of people being made bankrupt on the rise, companies are looking to ways in which they can offer products to this growing group of individuals.

According to official figures, in the last three months of 2008 over 30,000 people filed for bankruptcy, an increase of of almost a fifth compared to the previous year, 2007.

And this number is expected to rise even further throughout the year as unemployment reaches a record high and the credit crunch continues to claim new victims.

With the country in the midst of a recession there is an increasing demand for financial services which reflect the needs of those who have been forced to claim themselves bankrupt.

With the bankruptcy remaining on their credit record for the next six years, it will be near impossible for those recently made bankrupt to sign any major credit agreements such as a car loan or mortgage, however, there is a credit card out there which can offer a lifeline to the bankrupt.

In the future when these people may be in a position to take out a mortgage or buy a new car, they will find that even without the bankruptcy on their record, their credit rating is low, having had no steady repayments to their name demonstrating that they can be trusted with credit.

Therefore, the 'credit building' credit cards are aimed at such people, offering them a chance to show that they can manage credit effectively despite being made insolvent or defaulting on anumber of credit agreements.

These cards have high rates, demonstrating the risk involved, with the lowest rate, offered by Barclaycard, still 10% higher than the average credit card with a rate of 27.9%.

The rates offered more closely reflect those usually offered by expensive store cards than a typical credit card rate, however, the cash withdrawal rate is is the same, a relatively good rate on average.

Other offers include the Capital One Classic at 34.9% much higher than their basic rate of 9.9%. There is also the Aqua card at 35.9% and the Vanquis Visa card at 39.9%, owned by doorstep lender Provident Financial.

However, the actual rates could work out even higher as the provider reserves the right to offer a different rate to customers with a bad credit rating after they apply.

To obtain these credit cards, the borrower simply has to prove that they can afford the repayments and demonstrate that they can reliably keep up with the repayments.

On the Capital One card, the limit of £2,500 can be raised even higher if after the fourth statement if all previous bills have been paid on time.

As a perk, the Aqua card also offers 51 days interest free credit on purchases if the balance is paid off in full each month.