John Chung
Robert K. Rasmussen
Pamela Foohey
Shruti Rana
Ralph C. Anzivino
Kyoung Tae (KT) Kim
Carlo Polaris @polarcolorado
I am still making payments on my condo after filing for bankruptcy three years ago. Can I still own the condo after I pay the entire mortgage?
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2018’s Best Bankruptcy Credit Cards
Selected by WalletHub Editors from 1,000+ credit cards — Nov 17, 2018
Getting approved for credit cards after bankruptcy can be tough. And opening a credit card during bankruptcy is even harder. You generally can’t get a new credit card before Ch. 7 discharge, or without the trustee’s approval in a Ch. 13 case. Even many secured credit cards, which offer nearly guaranteed approval, will reject … show more
show less Getting approved for credit cards after bankruptcy can be tough. And opening a credit card during bankruptcy is even harder. You generally can’t get a new credit card before Ch. 7 discharge, or without the trustee’s approval in a Ch. 13 case. Even many secured credit cards, which offer nearly guaranteed approval, will reject anyone with a recent bankruptcy on their record, let alone one that’s ongoing. And if you haven’t filed yet, be careful about adding credit card debt in the months before doing so. The court won’t forgive a balance (in Ch. 7) if it’s clear you never planned to pay. Besides, you must include any credit account with a balance on your bankruptcy petition. And all of your accounts will likely be closed soon after you file.
To help you find the best credit cards after bankruptcy, or even earlier, WalletHub’s editors compared 1,000+ offers based on their eligibility requirements, fees, rates and rewards. Below, you can find a quick summary of our picks (some offers are from our partners), followed by additional info about each and some helpful tips.
This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer.
Continue reading to learn more about the top post-bankruptcy credit cards. And make sure to check out our tips for applying for a credit card after bankruptcy, too. show more
show less Getting approved for credit cards after bankruptcy can be tough. And opening a credit card during bankruptcy is even harder. You generally can’t get a new credit card before Ch. 7 discharge, or without the trustee’s approval in a Ch. 13 case. Even many secured credit cards, which offer nearly guaranteed approval, will reject anyone with a recent bankruptcy on their record, let alone one that’s ongoing. And if you haven’t filed yet, be careful about adding credit card debt in the months before doing so. The court won’t forgive a balance (in Ch. 7) if it’s clear you never planned to pay. Besides, you must include any credit account with a balance on your bankruptcy petition. And all of your accounts will likely be closed soon after you file.
To help you find the best credit cards after bankruptcy, or even earlier, WalletHub’s editors compared 1,000+ offers based on their eligibility requirements, fees, rates and rewards. Below, you can find a quick summary of our picks (some offers are from our partners), followed by additional info about each and some helpful tips.
This content is not provided or commissioned by any issuer. Opinions expressed here are the author’s alone, not those of an issuer, and have not been reviewed, approved or otherwise endorsed by an issuer.
Here are 2018's Best Credit Cards After Bankruptcy:
- Best for No Annual Fee – Capital One® Secured Mastercard®
- Best for No Credit Check – OpenSky® Secured Visa® Credit Card
- Best Unsecured – Credit One Bank® Platinum Visa® for Rebuilding Credit
- Best for Ch. 7 – Discover it® Secured
- Best for the Military Community - USAA® Secured Visa Platinum® Card
- Best for Bikers - Harley-Davidson® Secured Credit Card
Continue reading to learn more about the top post-bankruptcy credit cards. And make sure to check out our tips for applying for a credit card after bankruptcy, too. show more
Best Bankruptcy Credit Card with No Annual Fee
Best Bankruptcy Credit Card with No Annual Fee
Capital One® Secured Mastercard® Proceed 7,814 Reviews
Best Bankruptcy Credit Card with No Credit Check
Best Bankruptcy Credit Card with No Credit Check
OpenSky® Secured Visa® Credit Card Proceed 5,489 Reviews
OpenSky® Secured Visa® Credit Card – OpenSky does not review applicants’ credit reports. They only need to verify your identity and confirm that you have enough income to support your monthly spending. So your bankruptcy status shouldn’t matter as far as OpenSky approval is concerned.
For more information, check out WalletHub’s complete review of the OpenSky Secured Card.
For more information, check out WalletHub’s complete review of the OpenSky Secured Card.
Best Bankruptcy Credit Card with No Deposit
Best Bankruptcy Credit Card with No Deposit
Credit One Bank® Platinum Visa® for Rebuilding Credit Proceed 7,690 Reviews
Credit One Bank® Platinum Visa® -- Credit One’s terms and conditions don’t mention bankruptcy, so we asked them if it could hurt your chances of approval. They said no, but it could lead to a low credit limit and a high annual fee. The Credit One Platinum Visa Card’s minimum credit limit is $300. And its annual fee could be anywhere from $0 to $75 the first year ($0 to $99 after).
You can get the full scoop from WalletHub’s full review of the Credit One Platinum Card.
You can get the full scoop from WalletHub’s full review of the Credit One Platinum Card.
Best Bankruptcy Credit Card for Chapter 7
Best Bankruptcy Credit Card for Chapter 7
Discover it® Secured Proceed 2,275 Reviews
Discover it® Secured – Discover clearly states its bankruptcy policy for the it Card:
“A Chapter 7 bankruptcy on your credit history will not prevent you from being approved for the Discover it ® Secured Credit Card. Any pending, non-chapter 7 bankruptcy will prevent you from being approved.”
Plus, Discover it Secured is one of the best secured credit cards on the market. It doesn’t charge an annual fee. And it offers some pretty attractive rewards, which is very rare for a secured credit card. You can get the specifics from WalletHub’s full review.
“A Chapter 7 bankruptcy on your credit history will not prevent you from being approved for the Discover it ® Secured Credit Card. Any pending, non-chapter 7 bankruptcy will prevent you from being approved.”
Plus, Discover it Secured is one of the best secured credit cards on the market. It doesn’t charge an annual fee. And it offers some pretty attractive rewards, which is very rare for a secured credit card. You can get the specifics from WalletHub’s full review.
Best Bankruptcy Credit Card for the Military
Best Bankruptcy Credit Card for the Military
USAA® Secured Visa Platinum® Card Proceed 722 Reviews
The USAA Secured Visa is a great choice for rebuilding your credit, as long as you meet USAA’s eligibility requirements. Generally, you must be a current or former member of the military or an immediate family member of someone who belongs to USAA. If you pass that test and have at least $250 for the refundable security deposit, you should have a good shot at enjoying the USAA Secured Visa Card’s monthly credit-bureau reporting. There’s nothing about bankruptcy in the card’s terms and conditions, which indicates that it won’t automatically disqualify you. Rather, your ability to get the card will depend on the overall state of your finances.
Best Bankruptcy Credit Card for Bikers
Best Bankruptcy Credit Card for Bikers
Harley-Davidson® Secured Credit Card 1,067 Reviews
Anyone can use the Harley-Davidson Secured Card to benefit from its lack of an annual fee and improve their credit score. That even goes for people with a bankruptcy on their credit report. Approval isn’t guaranteed, but neither is rejection, as the card’s terms and conditions don’t reference bankruptcy among its requirements.
That said, bikers stand to benefit the most from this card, thanks to the Harley-Davidson rewards it provides.
That said, bikers stand to benefit the most from this card, thanks to the Harley-Davidson rewards it provides.
You may want to take another look over the bankruptcy credit cards discussed above. For your convenience, we’ll summarize how they compare in some key categories.
2018's Best Credit Cards After Bankruptcy:
| Card Name | Best For: | Annual Fee | APR | Bankruptcy Eligible? |
|---|---|---|---|---|
| Capital One® Secured Mastercard® | After Discharge | $0 | 24.99% (V) | Yes (after discharge) |
| OpenSky® Secured Visa® Credit Card | No Credit Check | $35 | 19.39% (V) | Yes (income must exceed expenses) |
| Credit One Bank® Platinum Visa® for Rebuilding Credit | Unsecured | $0 - $99 | 19.99% - 25.99% (V) | Yes |
| Discover it® Secured | Ch. 7 | $0 | 24.99% (V) | Yes (except pending non-Ch. 7) |
| USAA® Secured Visa Platinum® Card | Military | $35 | 11.90% - 21.90% (V) | Yes |
| Harley-Davidson® Secured Credit Card | Bikers | None | 24.99% (V) | Yes |
The best credit card after bankruptcy is the OpenSky® Secured Visa® Credit Card because there’s no credit check when you apply. OpenSky’s main approval requirement is that your income exceeds your expenses. The OpenSky® Secured Visa® isn’t too expensive, either, with a $35 annual fee and a $200 minimum security deposit. That deposit is fully refundable, and it will help you avoid spending more than you can afford to repay as you repair your credit standing.
4 Tips for Getting a Credit Card After Bankruptcy
Sometimes, bankruptcy can completely prevent you from getting a credit card, at least without permission. If you have a Ch. 13 payment plan, for example, you’ll need to ask the trustee before incurring any new debt. Other times, it’s just a matter of choosing the right card from the right issuer. The following tips will help you navigate the process.
- Check Your Credit Score & Report – Knowing your starting score will help you set your credit card expectations. It will also give you a benchmark against which to measure credit improvement. And reviewing your credit reports will give you the chance to identify errors unrelated to your bankruptcy that may be contributing to your credit score damage. You can check your latest credit score and TransUnion credit report for free on WalletHub. WalletHub is the only site with free scores and reports that are updated daily.
- Start with Secured Cards. Secured credit cards offer the highest approval odds because they prevent you from spending more than you can afford to repay. They do so by requiring a refundable security deposit and making your spending limit equal to what you put down. That means there’s less risk for issuers. But the best part is, secured credit cards are just as good for rebuilding credit as unsecured cards. They’re also a whole lot cheaper.
- Search the Fine Print – Most credit cards don’t advertise their stance on bankruptcy, so you’ll have to do a bit of digging. If you’re comparing credit card offers online, navigate to a card’s terms and conditions page, and search for the word “bankruptcy.” The best method is to use the “CTRL + f” (PC) or “Command + f” (Mac) function. This will allow you to review every mention of the word to see if there are any restrictions you need to know about.
- Look for Cards with No Annual Fee – When comparing credit cards after bankruptcy, your top priorities should be getting approved and paying as little as possible in fees. This will enable you to rebuild your credit as quickly and inexpensively as possible. And that will lead to a lot of savings and even better credit card offers.
But it’s important to remember that finding the best post-bankruptcy credit card for your needs is only half the battle. You must also use it wisely to benefit. Below, you’ll find some advice on how to rebuild the right way.
5 Pointers for Using Credit Cards After Bankruptcy
- Always Pay on Time. Paying your bill on time is the easiest way to add positive information to your credit reports each month. And that’s critical to overcoming the negative info from bankruptcy. Missing due dates, on the other hand, is the quickest way to show lenders you aren’t trustworthy. Check out WalletHub’s on-time payment tips for some specific ideas on how to stay on the right side of this issue.
- Don’t Spend More Than You Can Afford. Racking up credit card dept is expensive and puts unnecessary pressure on your finances. Besides, your goal at this point should be to adopt sustainable, responsible spending and payment habits. So always pay your bill in full or don’t actually use your card at all. Just having a credit card that’s in good standing benefits your credit.
- Build an Emergency Fund. Setting some money aside for a rainy day will help you avoid winding up right back where you started if you get hit with a major unexpected expense or income disruption. So save a bit every month for this purpose.
- Don’t Do Cash Advances. Using your credit card to withdraw cash from an ATM is extremely costly, thanks to both a fee and a very high interest rate that starts accruing right away. So cash advances should be reserved for emergencies only. This is especially true if you have a secured card, as there’s really no sense in paying finance charges to access cash that you deposited.
- Monitor Your Credit Score. Signing up for free 24/7 credit monitoring will get you alerts for important changes to your credit report. This will enable you to react quickly to errors and signs of fraud. Keeping an eye on your credit score will give you a sense of when you’re ready to apply for a credit card upgrade.
For more advice, check out WalletHub’s guides on how to rebuild damaged credit and how long you can expect the process to take.
Ask the Experts: Bankruptcy & Credit Cards
To help you make the right moves for your finances, WalletHub posed the following questions about using credit cards before, during and after bankruptcy to a panel of experts. You can find their bios and advice below.
- What happens to a credit card that you get soon before filing bankruptcy?
- Can you get a credit card during bankruptcy? Is there a difference between Ch. 7 and Ch. 13?
- How do your credit card options change after bankruptcy proceedings are complete?
- Is there a difference between secured and unsecured credit cards when it comes to bankruptcy?
- Can you keep a credit card during bankruptcy if it doesn’t have a balance when you file?
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John Chung
Professor of Law at Roger Williams University School of Law
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Robert K. Rasmussen
J. Thomas McCarthy Trustee Chair in Law and Political Science in the Gould School of Law at the University of Southern California
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Pamela Foohey
Associate Professor of Law at Indiana University Maurer School of Law
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Shruti Rana
Professor of Practice in the School of Global and International Studies and Affiliated Faculty in the Stewart Center on the Global Legal Profession at Indiana University Bloomington
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Ralph C. Anzivino
Professor of Law, Marquette University Law School
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Kyoung Tae (KT) Kim
Assistant Professor, Department of Consumer Sciences, The University of Alabama
More Experts
Community Discussion
Finding 2018’s Best Bankruptcy Credit Cards can be tough. But you’ve got the knowledgeable WalletHub community on your side. We encourage everyone to share their knowledge while respecting our content guidelines. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure that all posts and questions are answered....show moreshow less
Isaac Rockall @rockall_isaac
How long does it take for a Chapter 7 to come off your credit report?
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@j_maffrand
It will stay on your credit for 7 years, but as the years pass its impact lessens.
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Wesley Smith @wesleysmith_1
Can I keep my car in a Chapter 7?
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@j_maffrand
It is possible to keep your car. Your bankruptcy attorney will help you work that out.
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@
Yes, I was able to keep my car after chapter 7.
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Preston Garvey @preston_garvey3
How long after Chapter 7 can you apply for credit?
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@j_maffrand
Immediately, but you will most likely be denied. You\'ll have to start the rebuilding process with secured credit cards and credit rebuilding loans. Check out Self Lender.
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Lisa Miller @miller_lisa
When can you buy a house after filing Chapter 7?
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@j_maffrand
There\'s typically a two-year wait after discharge. Some lenders will work with you after one year.
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@
You can buy a home exactly 2yrs after your discharge date.
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@
Hi Lisa, there is a 2 year waiting period after your discharge date..
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James Maynard @maynard_jim
How long does it take to rebuild your credit after Chapter 7?
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@j_maffrand
Depends on the person and how they handle their money afterwards.
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Marge Turnbull @marge_turnbull
Can you keep a credit card if you file Chapter 7?
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@j_maffrand
You might be able to leave a card out of the bankruptcy, but if it is a card that has late fees and debt it's smarter to lump it in.
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In other words, if you’ve completed the bankruptcy process, you’ll have a good chance of getting the rebuilding phase going with the Capital One Secured Mastercard. If you need more info, just check out WalletHub’s full review.