In today’s economy many people are faced with the difficult decision to declare bankruptcy (BK). Many people have no other option and it was circumstances they could not control which forced them into the bankruptcy.
If you have been through bankruptcy because of job loss, medical bills or some other reason try to not let it get you down too much. It is a difficult time, but there is a light at the end of the tunnel. You can not only rebuild your finances, but you can flourish.
[See below for cards you may qualify for after your bk.]
Can I get a credit card after bankruptcy?
The short answer is yes.
The long answer is this. Lenders and banks are always very hesitant to lend to a consumer with a bankruptcy on their record. That consumer is considered high risk, and instead of taking that risk many companies will simply deny you.
You may ask “Then how do I get a credit card after bankruptcy?” or “What card can I get?”
There are credit cards that are made specifically for high risk situations.
Most credit cards are what is called unsecured debt. This means there is no collateral backing up the debt you acquire. Even if you do not have $10,000 in the bank you can still rack up $10,000 of debt. This is a typical credit card, right?
A secure credit card on the other hand does have collateral backing it up. For example, if you deposited $300 the lender would give you a credit card with a $300 dollar limit on it. You could use the card like any other credit card and when you close the card the deposit is used to pay off the remaining balance. The remaining deposit money is returned to you.
A secure credit card dramatically reduces the risk to the lender and the best option after a BK is often a secure credit.
If you can qualify for an unsecure credit card, that is great as well. The best CC to rebuild credit after a bankruptcy is whatever card you can get that reports to the bureaus. Remember to keep these tips in mind though.
Things to keep in mind when applying for credit cards after bankruptcy
The majority of secure credit cards have fees associated with them. Expect to pay some sort of fee to use a secure credit card.
Using a well-known financial institution is recommended. There are a lot of people out there trying to take advantage of folks after bankruptcies. They are easy targets because their options are limited. Using a well-known financial institution will help you not get ripped off. Remember the easiest card to get is not always the best.
Be sure the lender issuing you the card will report your activity to the credit bureaus. Some companies do not report secure credit card information. If they do not report your activity the card means nothing.
How long after my bankruptcy until I can get a Credit Card?
Many times you can get a card right after. It is going to depend on what type of card you apply for and if the lender approves you.
Applying for a credit card after bankruptcy is easy. Here is a great option you may qualify for.
Best Credit Card to Apply for After Bankruptcy