Yes, you can still get credit after you have declared bankruptcy, though you will need to wait until your debts are discharged or you get permission from the court. While you could try to get a credit card with no credit check even before your debt is discharged, you will have more options if you wait.
Credit Cards You Could Get After Filing For Bankruptcy
With Chapter 7 bankruptcy, the most common type of bankruptcy for individuals, it takes about six months to go from filing to discharge. Other types of bankruptcy, such as Chapter 13, will require longer waiting periods to resolve.
No matter which type of bankruptcy you file, you’ll want to start rebuilding your credit score as soon as possible, and secured cards are typically the best way to do that. You may also consider asking a friend or family member to add you as an authorized user to their credit card account.
If you filed for Chapter 7 bankruptcy, you should be able to get a secured card as soon as your bankruptcy is discharged. If it was Chapter 13 instead, you’ll need the approval of the trustee during your payment plan.
Credit card issuers generally won’t approve you for any cards while you’re still in the bankruptcy process. But once the bankruptcy discharges, you can get a card that fits your needs.
Here’s how soon after bankruptcy you can get a credit card:
Secured credit card: After bankruptcy discharged
These cards require a refundable security deposit, usually at least $200, which doubles as your credit limit. Because you’re putting up your own money, your approval chances are high.
The Capital One Platinum Secured’s only bankruptcy requirement is that the case must be fully discharged. Some cards, like OpenSky, don’t even check your credit report when you apply, so they’re great for post-bankruptcy credit improvement.
Unsecured credit cards for bad credit: After bankruptcy discharged
Credit cards that don’t require a security deposit are a lot harder for people with bad credit to get than secured cards. They’re also much more expensive, both in terms of interest rates and fees.
If a friend or family member makes you an authorized user on their credit card account, that account will be added to your credit reports, and you’ll benefit if the main account holder pays the bill on time every month. If your friend or relative allows it, you will also get a card with your name on it to use for purchases.
After your bankruptcy is discharged, you may still have difficulty getting approved for a new credit card at first. Some issuers may deny your application simply because there’s a recent bankruptcy on your credit report. However, some lenders might be more lenient. That’s because of rules that restrict when you can file for a second bankruptcy, making you a low risk of filing for bankruptcy again.
In addition to finding the right credit card with which to begin rebuilding your credit, you should review your credit reports for errors and monitor your credit score moving forward. You definitely don’t want the problems that led to bankruptcy to repeat themselves.
Unsecured credit cards are generally more difficult to get approved for after a bankruptcy, but you could get one of these unsecured options as long as the bankruptcy process is over. It’s important to keep in mind, however, that these credit cards come with annual fees and low credit limits. And a recent bankruptcy could lead to a high annual fee.… read full answer
A better, and easier, option would be to get a secured credit card and fund a more generous security deposit. Just like unsecured credit cards, you can get a secured credit card as soon as the bankruptcy process is over and your debts are discharged. It’s simply easier to qualify for a secured credit card than an unsecured one. Plus, secured cards are cheaper in the long run and more practical than an unsecured credit card for bad credit, and will still rebuild your credit after a bankruptcy. The OpenSky® Secured Visa® Credit Card is one example, and they don’t even check your credit when you apply.
You might also try getting a store credit card, like the Fingerhut Credit Account. It’s an easy-to-get unsecured credit line, but you can only use it in one place.
Ultimately, you might want to check out a few more credit cards that you can use after bankruptcy, that also come with low annual fees.
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