What About a Credit Card After Bankruptcy?

Have you just filed for bankruptcy and want to apply for another credit card? Is this possible? How do you go about doing it? is important to start fresh after you file for bankruptcy, and you will need to open brand new credit accounts, although it is going to be hard for you to get approved for a credit card after bankruptcy.

I will take you through 5 steps so that you can be sure to get a credit card after bankruptcy is filed.

First, accept pre-approved credit card offers. Many credit card companies will target those who have filed for bankruptcy.

Make sure you understand the 'terms' of these pre-approved credit cards. Read them carefully and take your time, because the interest rate for these cards is going to be high, at around 30%. As well, you will find that these credit cards have other fees, such as annual fees and maintenance fees.

The third step for you is to talk to your bank. If you have a good track record with your bank, they might approve you for a credit card if you explain what your situation is. 

 The fourth step is to get a secured credit card. Getting an unsecured credit card after bankruptcy is very hard, but you will be able to be approved for a secured one. If you put a down payment down with a credit card company, you can make regular payments. After two years, your secured credit card turns into an unsecured one.

A great way to get a credit card after bankruptcy is to have a co-signer who has a good credit rating. Make sure you don't miss payments or else your co-signer is responsible. How do you get a credit card after bankruptcy is not an uncommon question that people ask afterwards, so hopefully I have answered your question.

 I must stress three things about getting a credit card after bankruptcy -

1. You will most likely have to pay a higher interest rate because you are at high risk with credit card companies. 5% higher is not uncommon.

2. You will have to secure your credit card- I talked about this already. You will pay a lump sum of cash, such as $600. This money is used in collateral for your credit limit. If you do not make payments, the money you gave them, will be used to pay off your account.

3. Your fees will be higher. As mentioned earlier, you are a high risk for credit card companies and so your annual fees will have to be paid as a privilege for having another credit card after bankruptcy

 If you are looking to apply for a credit card after you file for bankruptcy, you can read about what is the best credit card after bankruptcy