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Stacy B. Miller On 6th Feb,20
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Can you apply for credit cards after filing bankruptcy?
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Life doesn’t end after filing bankruptcy. But yes, a few restrictions are definitely imposed on your financial life. Does that mean you can’t apply for credit cards after bankruptcy?

It isn’t that you can’t apply for credit cards after bankruptcy. It’s just that you may not qualify for the best credit cards at favorable interest rates.

It’ll be difficult to get credit cards that you want. You’ll have to pay high-interest rates and astounding fees if you have filed bankruptcy recently.

Can you apply for credit cards after Chapter 7 bankruptcy?

Chapter 7 bankruptcy lasts for only 3-4 months. Your debts get discharged quickly. So you can immediately apply for a credit card after getting a bankruptcy discharge. Steve Rhodes - The get out of debt guy started receiving credit card offers after receiving a bankruptcy discharge.

Yes. He didn’t receive the best offers initially. The interest rates were high. So he worked on rebuilding his credit. He applied for a secured credit card to rebuild his credit gradually. Steve deposited a specific amount of money as a security against the charges made on the card, up to a credit limit.

Steve made various purchases with the secured credit card and paid the bill in full within the deadline every month. He made small purchases to avoid defaulting on a credit card. Responsible handling of credit cards and on-time payments helped him to rebuild credit.

A tip for using secured credit cards

When you’re shopping for a secured credit card, find out if the lender reports the payment on your credit report. If they don’t report your payments to credit bureaus, then it wouldn’t help to boost your credit score. Also, ask the lender if he has any problem in converting the account to an unsecured credit card when you make on-time payments.

Can you apply for credit cards after Chapter 13 bankruptcy?

Often people feel breathless when they are in Chapter 13 bankruptcy. The repayment plan is so stringent that there is hardly any space in their financial life. They can’t waste money. They can’t create an emergency fund since creditors need to be satisfied first. Moreover, if they receive any financial windfall, they have to use the entire amount for paying off debts. Any kind of luxury is strictly prohibited. This is why debtors often feel the need to apply for credit cards. After all, it’s not easy to be on a strict financial diet for 60 months, which is the maximum repayment term in Chapter 13 bankruptcy.

It’s best to consult an attorney and ask when to apply for a credit card after bankruptcy. Ask him what are the best credit cards to apply for after bankruptcy discharge. A good attorney can tell you what credit card to apply for after bankruptcy. He can give you detailed information on the eligibility criteria. Besides you can shop around to know about good credit cards to apply for after bankruptcy.

How to apply for a credit card after bankruptcy

The process of applying for a credit card after bankruptcy is pretty much the same. First, you have to check out the website of the credit card company and visit their sign-up page. Read what is written on that page. The terms and conditions are clearly described here. For instance, Capital One® Secured Mastercard® clearly states that applicants with non-discharged bankruptcy are not eligible for this card. This means if your bankruptcy case has not yet been discharged, then you can’t apply for it.

Next, click on the ‘Apply Now’ button to get redirected to the application form.

Third, fill out the form. Give personal information, contact information, financial information, and additional information if required.

Fourth, read the important disclosures section to clear all your doubts and then complete the rest of the application process.

A word of wisdom

Many credit card issuers are not sure of the criteria based on which they approve or reject applications. Sometimes, applicants come to know if they have been approved or rejected only after a hard inquiry has been triggered on a credit report. Each credit card company has a set of guidelines that they follow. These guidelines are quite complex and elaborate. Plus, they don’t cater to only credit scores and bankruptcy. There are many more points, which need to be considered.

Conclusion

Be careful when you’re looking for credit cards to apply for after bankruptcy. High-interest credit cards can push you toward debt problems again if you can’t manage them responsibly. If you do take a high-interest credit card with huge annual fees, then make sure you arrange enough money to cover them each month. Otherwise small amounts can increase your credit card balance gradually.

Last Updated on: Thu, 6 Feb 2020

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