Credit Cards after Bankruptcy


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Credit Cards after Bankruptcy

Credit Cards after Bankruptcy

Updated: September 27, 2018

The content is accurate at the time of publication and is subject to change.

So you had bad luck repaying your debt and you recently had to file bankruptcy. A lot of people tend to think that their credit history is ruined and there are no more chances to seek for financial aid. However, there are still certain card issuers that are willing to help you obtain credit. Whether it's a business trip or an everyday purchase, there are cards on the market that can satisfy your needs. But be prepared, the deals you might see may not exactly meet your expectations.

Getting any significant help at this stage is a difficult task. Card issuers realize that you might be a risky client and an open credit line may result in unforeseen debts. Nevertheless, financial institutions are able to employ certain financial strategies to take control of the process.

A wrong thing to do here is to stay completely away from the credit industry. There are actions that need to be taken to recover your status. Simply keeping yourself out of this business will only temporarily solve the problem. A smart approach to credit cards might shorten the time it will take you to get back on track.

Even though you will not be able to obtain the same credit cards until your history is recovered, saving up some money may easily get you a secured one. Secured credit cards have a deposit equal to the desired credit limit. Comparing different offers while saving up some money will easily get you a card in few months.

When it comes to unsecured cards, things get tougher. You will no longer be eligible for credit card applications with low APRs, low balance transfer rates and high credit line. Trying to apply for such cards will most likely damage your credit score every time your application is rejected. Be reasonable; don't let yourself be pushed into the chase for rates, fees, bonuses and rewards.

Store credit cards are also willing to "give you another chance". Their credit line might be bigger, but the APR on such cards is very high. Furthermore, such cards can only be used in particular stores, making it useless if you are planning to take this card on a business trip.

Either way, experts agree on one thing. Applying for a credit card in 2 or more years after filing bankruptcy increases the chances of your application to be accepted. Financial institution and lenders aren't really happy to see bankruptcy declaration as an item in your recent credit history report. Your job here is to cover it up with on-time payments.

A wise thing to do on this stage would be to apply for a credit card with moderate rates. Make sure not to stay near your balance limit for a long time, try to make payments in advance, do not try to apply for more than 2 cards and your score will be constantly increasing.

Of course, you may get a credit card much sooner, but don't expect anything good out of it. Financial institutions that will be willing to offer a good card at this time have something deceitful on their mind.

Many banks seek for people who have declared bankruptcy not long ago to offer them unilateral deals. Card issuers are aware of their situation and they make use of it. They are trying to push their deals, marketing them as the last and only chance for someone to recover his credit history. This delusive practice has forced many customers to apply for cards that have only made it harder to recover their financial life.

To sum it up, proper use of any card will cure your credit score in one way or another. If your bankruptcy has something to do with credit cards, understand what went wrong and avoid making the same mistakes. Make sure not to rush yourself into unfavorable deals with high rates, sky-high application fees, etc. Bad credit due to bankruptcy isn't a dead end.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Citi Premier® Card – A World Elite Mastercard Travel Credit Card

Posted: February 10, 2021

Citi, a advertising partner, offers the Citi Premier® Card, which gives elevated ThankYou points for your travel expenses and, with the recent update of the rewards program, for purchases at restaurants, supermarkets, and… Continue reading

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Discover it® Miles Review: Turn Miles Into Travel Experiences or Cash

Posted: February 10, 2021

Many travel credit cards come with tempting perks, requiring some effort bonuses, a complicated rewards structure, and steep annual fees. The Discover it® Miles is probably the best Discover card for travel, especially if you do not travel… Continue reading

Top 5 Secured Credit Cards: September 2021 – Experts’ Choice

Top 5 Secured Credit Cards: September 2021 – Experts’ Choice

Posted: October 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!