What unsecured credit cards can I get after a bankruptcy?

This question is about Best Bankruptcy Credit Cards

Darnell Hampton, Member

@theblackstar15 06/03/20 This answer was first published on 11/25/19 and it was last updated on 06/03/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A few unsecured credit cards you may be able to get after a bankruptcy are the Credit One Bank Platinum Visa, the Total Visa Credit Card, and the Indigo Platinum Mastercard. 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.

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 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.

Types of unsecured credit cards

More than 9 in 10 credit card offers are unsecured, with no deposit needed. So, it’s no surprise there are lots of slightly different types of unsecured credit cards. There are unsecured cards for each credit rating, from excellent credit to bad credit. There are unsecured credit cards for students, small business owners and everyone else. Some reward cardholders for making purchases, while others offer low introductory APRs. Some have low fees; others don’t.

Given the variety, finding the right card for your needs is not as simple as just setting out in search of an unsecured credit card. You need to compare the available offers based on the features – other than security deposit requirements – that figure to have the greatest impact on your life. For your convenience, we’ll highlight a handful of the best, most popular unsecured card offers below.

Popular Unsecured Credit Cards:

Chase Sapphire Preferred® Card - Good

Wells Fargo Cash Wise Visa® card - Good

Capital One QuicksilverOne Cash Rewards Credit Card - Limited History

Capital One Platinum Credit Card - Limited History

Credit One Bank® Platinum Visa® with Cash Back Rewards - Fair

Secured or unsecured?

Deciding between an unsecured credit card and a secured credit card is a matter of creditworthiness. People with bad credit or limited credit history will benefit most from a secured card because they may not be able to get good terms with an unsecured card. Few banks and credit unions are willing to take on the risk of lending to applicants with badly damaged credit. As a result, there is a limited selection of unsecured credit card offers for people with below-average credit, and the cards that are available can be pretty expensive. Credit cards for students with no credit are a notable exception, though.

Given that borrowers basically prepay for their purchasing power with secured credit cards, such cards offer higher approval odds and charge lower fees than unsecured cards for poor credit. Secured credit cards also report to the major credit bureaus each month, and they look exactly like unsecured credit cards on credit reports. That means using a secured card responsibly can help you build or rebuild your credit just like an unsecured credit card. To learn more, check out our secured vs. unsecured credit cards comparison.

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