Best Bankruptcy Credit Cards

You can get a credit card any time after bankruptcy. But you should begin exploring options such as secured credit cards as soon as the bankruptcy is discharged in order to begin rebuilding your credit. Though some secured cards won't approve people with recent bankruptcy, many will, such as the Capital One Platinum Secured Credit Card and the OpenSky® Secured Visa® Credit Card.

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. You should also note that credit card issuers won't usually approve you for any cards while you're still in the bankruptcy process. But once the bankruptcy is discharged, you can get a card that fits your needs.

Types of Credit Cards You Can Get After Bankruptcy

Secured credit cards. 

You can get a secured credit card right after the bankruptcy is discharged. Just note that these cards require a refundable security deposit, which serves 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. 

These cards are also available to people that have a fully discharged bankruptcy. But keep in mind that 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.

One example is the Credit One Bank® Platinum Visa® for Rebuilding Credit. Credit One Bank says a discharged bankruptcy won't hurt your approval chances but could lead to a lower credit limit and a higher annual fee.

Authorized users. 

You can become an authorized user on someone else's account immediately after a bankruptcy. More specifically, if someone makes you an authorized user on their credit card account, that account will be added to your credit reports. So, 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.

What to Know Before Getting a Credit Card After Bankruptcy

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.

Yes, you can still get a credit card after you have declared bankruptcy. However, 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.Therefore, secured cards are typically the best way to do it. You may also consider asking a friend or family member to add you as an authorized user to their credit card account.

The best way to rebuild your credit after bankruptcy is to pay all your bills on time and use a secured credit card responsibly. That is because the key to rebuilding your credit after bankruptcy is to work consistently at diminishing the effect of negative items on your credit report by adding new, positive information over time. You can add positive items to your credit report simply by maintaining an open credit card account with no balance, or by spending responsibly and always paying the bill on time. Secured cards are the best type of credit card to use after bankruptcy because they offer high approval odds, low fees and monthly reporting to the credit bureaus.

While it can take as long as two years to see significant credit improvement and 7 to 10 years for a full credit score recovery after bankruptcy, you can start work on rebuilding your credit right away. We've listed some of the best ways to do just that below.

7 Tips For Rebuilding Credit After Bankruptcy

1. Make Payments On-Time. Rebuilding your credit after bankruptcy necessitates burying the negative information with new, positive information. Making payments on-time is one of the easiest ways to do that. To help make sure you don't miss a payment, you can check out our tips for never missing a due date and set your accounts up for autopay.
2. Apply for a Secured Card. A secured credit card is a great way to start working on credit improvement. The approval rate for individuals with bad credit is high, the fees are low, and as long as you make your payments on time, you will see steady credit improvement. All major credit cards report account information to the credit bureaus monthly.
3. Limit Your Credit Card Applications. While it's a good idea to apply for a new credit card to help you get back on your feet, too many credit card applications (and resulting hard inquiries) in a short period of time can cause your credit score to drop. It's best to research the right card for your needs and apply for one credit card at a time.
4. Maintain Steady Employment. Switching jobs or being out of work won't affect your credit score directly, but lenders can look at employment history when making decisions on credit applications. If it looks like your income may not be steady, lenders will be less likely to approve you for new credit, which is one of the best ways to recover from bad credit.
5. Become An Authorized User or Get a Cosigner. If a friend or family member is willing to add you as an authorized user on a credit card or co-sign a loan with you, your credit score could increase over time. You will benefit most as an authorized user or cosigner if the primary user/other person on the account keeps it in good standing and makes payments on time.
6. Keep Credit Utilization Low. Credit utilization is a major contributor to the balances owed portion of your credit score (worth 20% to 30% of your score, depending on the model). As a result, it's best to limit your credit card spending to essentials after bankruptcy. In addition to helping your credit score, this practice will also show lenders that you have learned from your mistakes and know how to use credit wisely.
7. Add Positive Accounts to Your Credit Report. Another way to help rebuild your credit is to add non-traditional accounts to your credit report. For example, you can self-report both utility payments (through services such as Experian Boost) and rental payments to the credit bureaus. While not all credit scoring models (or lenders) will factor these payments into your credit score, you don't lose anything by reporting them to the credit bureaus and could end up benefitting.

You can find more tips for rebuilding credit in our guide on the subject. You can also track your credit score's progress and get personalized credit-improvement advice through your free WalletHub account.

You can get a few unsecured credit cards after a bankruptcy, the best of which is the Credit One Bank® Platinum Visa® for Rebuilding Credit. This card offers 1% cash back on gas and grocery purchases, as well as 1% back on mobile phone, internet, cable and satellite TV services. The card's annual fee is $75 intro 1st yr, $99 after. 

Note that unsecured credit cards are generally more difficult to get approved for after a bankruptcy. But you could get one as soon as the bankruptcy is discharged. It's important to keep in mind, however, that the unsecured credit cards that you can get after a bankruptcy come with annual fees and low credit limits. Also, a recent bankruptcy could lead to high interest rates and additional fees.

Notable Unsecured Cards to Get After a Bankruptcy

A better 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 is discharged. 

Secured cards are cheaper in the long run and more practical than an unsecured credit card for bad credit. Plus, they will still rebuild your credit after a bankruptcy. The OpenSky® Secured Visa® Credit Card is a good option as it doesn't require a credit check when you apply. 

Other Alternatives to Unsecured Bankruptcy Credit Cards

You might also try getting a store credit card, like the Fingerhut Credit Account. It's an easy-to-get unsecured credit line, but it is only accepted at Fingerhut.

Ultimately, feel free to take a look at our editors' picks for the best bankruptcy credit cards available right now on the market.  

Having a bankruptcy on your file will, unfortunately, exclude you from most high limit credit cards.With that said, if you have enough funds, you could apply for a secured credit card. With secured cards, your deposit will equal your limit, so you can theoretically have as high a limit as you want.

You can check out our best secured credit cards here.

The majority of Synchrony Bank's credit cards are designed for people with fair or good credit scores, so it's not the most “bankruptcy-friendly”.

In other words, it's highly unlikely to get approved for a Synchrony Bank credit card unless your bankruptcy is discharged and your credit score bounced back in the 700s.

You should aim for a secured credit card so that you can start rebuilding your credit. Please find a list of secured credit cards here.

It's very important to make all payments on time, as late payments will quickly affect your score. Also, try to correct any errors on your credit report by contacting the appropriate credit reporting agency.

Unfortunately, there's no way to tell how long after a discharged bankruptcy will you be considered eligible for this card.

There are some bankruptcy friendly credit cards you could apply for instead, for better chances of approval.

The easiest store credit card to get after bankruptcy is the Fingerhut Credit Account because they approve people with bad credit. However, if your bankruptcy discharge included a Fingerhut Credit Account, even if you didn't have a balance on it, they may deny your credit application for a period of time after your bankruptcy. You may find the same response from other store cards, like Synchrony and Comenity credit cards, if you had an account with them previously.

The good thing about getting a Fingerhut Credit Account after bankruptcy is even if they deny your application soon after your bankruptcy, all you have to do is wait. They may send you a pre-approval offer in the mail in a month or two.

If you want a credit card right away after bankruptcy, your best bet will be applying for a secured credit card. Because bankruptcy looks very risky to credit card companies, you can get denied even for a secured card with a bankruptcy on your credit report. Try avoiding credit card companies you had an account with during your bankruptcy to increase your approval odds.

In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors. 

In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back all or a portion of your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own. You lose no property in Chapter 13 bankruptcy, because you fund your repayment plan through your income.

There is no set timeframe that Discover publicly discloses. In order to determine whether you qualify for an account, Discover will review the information that you provide on the application and your credit report, and will not focus only on the bankruptcy. It is important to note that the Discover it® Secured Credit Card is meant for people looking to build or rebuild their credit, so the approval criteria will be more lenient.