Credit cards for good credit after bankruptcy

credit cards for good credit after bankruptcy

For new credit cards, don’t pay the full balance each month; rather, pay down your balances on a rolling two-month schedule. Sure, you’ll be paying interest, but you’ll also be restoring your creditor’s confidence in your creditworthiness. Credit cards are a primary tool for restoring your credit rating following The Best Credit Cards After Bankruptcy. There are many credit cards for people trying to repair bad credit, but some come with few benefits and high fees that do more harm than good for the are the best credit cards for bankruptcy filers who Unsecured credit cards after bankruptcy for rebuilding credit. Right after bankruptcy, you likely won’t be approved for an unsecured credit card. However, after using a secured card for 1 to 2 years and paying your bills on time, your credit score may be high enough to get approved for an unsecured

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Bankruptcy can make qualifying and effectively utilizing credit cards — and any type of credit for that matter — incredibly difficult. While bankruptcy might seem like the end of the road, you still have a few options. Compare some of the best secured credit card options and spend responsibly to rebuild your credit score so that you can eventually graduate to a better credit card. You may find it easier to be approved for a credit card at the bank where you keep your money.

Meet with a banker at a local branch and discuss your credit history and financial needs. Other than applying for secured credit cards, one good option is to focus on rebuilding your credit with a dedicated credit-building program, such as Score-Up , which uses algorithms to help you set a target credit score and action plan to get back on track.

After thirty days, your credit card provider may report a late payment to the two credit bureaus Equifax and TransUnion and will then charge you interest on your balance, as well as a late payment fee. These consequences can seriously harm your credit score and financial wellbeing. Make sure to stay up-to-date with payments on your secured card so you can continue to improve your credit history after bankruptcy.

Was this content helpful to you? Yes No Thank you for your feedback! Emma Balmforth linkedin Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future.

Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. Optional, only if you want us to follow up with you. Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve. While we are independent, the offers that appear on this site are from companies from which finder.

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Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Credit Cards. Credit cards after bankruptcy It may be difficult to get a credit card after bankruptcy, but there are options. Emma Balmforth. Adrienne Fuller. Learn more about how we fact check. Bankruptcy can have long-term effects on your credit score and can make it harder to obtain credit cards and other loans.

Compare credit cards for after bankruptcy What to do after you receive your credit card Bottom line Frequently asked questions. Refresh Secured Card With this secured credit card , you can look forward to building up your credit score by making on-time payments. The perks. No credit check. What to watch out for. Annual and monthly fees. Home Trust Secured No Fee Visa Home Trust offers a secured visa card that allows you to choose the best option for your needs: choose a no annual fee card that comes with a purchase rate of No annual fee option.

If you are considering bankruptcy as a way to wipe out credit card debt, contact our office today to schedule a consultation. Credit card debt can be debilitating. The good news is that credit card balances are generally discharged in a Chapter 7 bankruptcy. For those residents who are not eligible for Chapter 7, they may still have a large portion of their credit card debt discharged in a Chapter 13 proceeding. Once the process is initiated, collection companies are required to cease their attempts to collect the credit card debt.

They must stop sending letters, making phone calls, and otherwise harassing debtors engaged in the bankruptcy process. It is possible to exclude a card that has a zero balance from the process and potentially use that card in the future. In many cases, however, the credit card company will cancel even unused cards once a cardholder files bankruptcy. Our attorney can help you determine how to handle each outstanding balance in your case.

It is important to note that creditors may attempt to challenge the discharge of a debt. Regarding credit card debt, a company may require repayment of a card balance if they can demonstrate that the debtor fraudulently incurred the debt. Make sure to only choose a secured credit card that reports your activity each month to the three credit bureaus or you will not receive any positive credit impacts. Chapter 7 bankruptcy liquidates your debt, but you may lose most of your property in the process.

In a way, Chapter 7 cleans the financial slate, although the black mark remains on your credit report for many years. Chapter 13 bankruptcy reorganizes your debt, which means you are expected to pay back at least some of it. In return, you get to keep your property. Under Chapter 13, secured credit cards receive preferential treatment to unsecured ones, which means you have to pay off your secured cards first, along with other collateralized debts, like your home and car loans.

Here are some tips for restoring your credit after bankruptcy:. Credit cards are a primary tool for restoring your credit rating following bankruptcy. Photo credits: totaldebtnet. Along with key review factors, this compensation may impact how and where products appear on the page including, for example, the order in which they appear.

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. By: Eric Bank. In fact, for many people in extreme debt, bankruptcy can actually be the first step to repairing your credit, for two important reasons: Bankruptcy can reduce or wipe out your debt.

Since you now have less or no debt, you are in an excellent position to repay the next debt you take on. Creditors know you will be willing to pay high interest rates to rebuild credit and many are happy to offer you those products, which are often the most profitable. We report to the major credit bureaus monthly View your Experian credit score online for free, terms apply Click here for official site, terms, and details.

See if you Pre-Qualify in less than 60 seconds—without affecting your credit score. It's fast, easy, and secure. Terms apply.

credit cards for good credit after bankruptcy

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