How Can I Get Credit Cards After Bankruptcy?


Posted on: 12 November 2018 by Adam Mhrez

There are a few challenges standing in your way if you want to get a credit card after bankruptcy. Your credit score has taken a nosedive after filing for bankruptcy.

There is no lender willing to work with you. So, it’s like an ultimate catastrophe. Hopefully, it is possible to get a credit card after bankruptcy without waiting for years. You can rebuild credit after filing for bankruptcy. You can get affordable credit cards. Here is how:

How bankruptcy can affect your credit         

After the completion of bankruptcy formalities when you are in the process of bankruptcy, all of your credits are effectively frozen. You are not allowed to access any type of credit after bankruptcy. You cannot apply for new credits and you cannot use your existing credits. Well, it depends on the type of bankruptcy you have filed.             

If it is Chapter 7 bankruptcy

All the eligible assets you have will be liquidated. Your creditors will receive the cash. From filing for bankruptcy to discharge, it will take 4 to 6 months to complete this process.

If it is Chapter 13 bankruptcy

In case you are filing for chapter 13 bankruptcy, no one will liquidate your assets. You will need approval by the court to pay off your debts over a 3 or 5 years payment plan.    

Apart from that, your credit score will receive a big blow. It takes 10 years to remove chapter 7 bankruptcy from the credit report. In case you have filed for chapter 13 bankruptcy, it remains on the credit report for 7 years.

Now, how bankruptcy will affect your credit score? It depends on the credit score you had before filing for bankruptcy. In case you had a good credit score, say 780, you will lose from 220 to 240 points. In case your credit score was 680, your credit score will take a hit of 130 to 150 points.      

After the bankruptcy is successfully resolved, all of your credits are free now. You can now apply for a credit card.    
Getting a Credit Card

You have a bankruptcy on your credit report. You have bad credit. You are expected to think that no credit card issuer is going issue a credit card. However, that’s not true. You will receive many credit card offers. However, these credit cards will have sky-high APRs. Credit limits will be low. The credit will depend on your income.    

If you have a credit card offer from a company and you have decided to pursue that offer, go for a credit card having no annual fee or any other unnecessary fee. Paying off the balance every month will save you from incurring interest charges. Think before taking any step. Rethink why you are going for a new credit card just after you are out of bankruptcy. You have limited options available to you. And, most probably, your financial situations is also not ideal for taking a new credit card. Try to fix your credit fast. Look for some other options to borrow.

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