Can I get credit cards after bankruptcy?
Bankruptcy changes a lot of things. It stops calls from creditors and makes it more difficult for them to take legal action against you.
It also requires you to turn much of your financial control over to the court. You’ll have to adjust to a new financial reality once you’ve filed for bankruptcy. Part of this new reality is the ability to get a credit card.
A lot of people assume you can’t get a credit card after you file for bankruptcy, but this isn’t true. They wonder “can I get credit cards after bankruptcy?” The answer is “yes.”
Here’s what you need to know about post-bankruptcy credit.
Conventional Credit Cards Are Rarely an Option Right After Bankruptcy
First and foremost, people who have filed for bankruptcy likely won’t qualify for conventional credit cards in the short term. However, there are cards designed for people with poor credit, including those who filed for bankruptcy. These are a great option for people looking to rebuild credit.
Credit card companies determine approval and terms based on your credit score. The lower your score the less favorable your terms. Many credit card companies reject your application for credit if your score is low enough.
The key to getting credit and getting credit with more favorable terms is to improve your credit score.
There’s no denying that bankruptcy hits your credit score hard. However, it’s the end of a challenging financial period and the beginning of improving your credit score.
You can learn more about improving your credit score here, with information about our credit recovery program.
Using Credit Responsibly is Your Best Tool for Improving Your Credit Score
One of the most powerful tools you have for improving your credit after bankruptcy is using credit cards responsibly. Most likely you’ll qualify for a secured credit card. Secured cards are those that are backed by money you have. They are similar to a debit card, but they affect your credit score like a credit card.
These cards are a win-win for everyone. The issuing company faces very little risk giving you a secure credit card and you improve your credit score by using it responsibly.
In time, you’ll graduate from a secured credit card to a regular credit card. The terms might be less favorable than you’d get had you kept your credit in good shape, but even this will change in time. If you are responsible with bill payments, you’ll see a significant improvement, especially once your bankruptcy falls off of your credit report.
If a secured credit card isn’t for you or you want to do even more to improve your credit, consider becoming an authorized user on another person’s credit card. This can help you establish a positive payment history, even if you aren’t paying the bill. Just make sure the primary cardholder has a solid payment history and is trustworthy when it comes to managing their credit. Otherwise, being an authorized user isn’t going to help you.
Finally, if you’re trying to improve your credit and get a credit card after bankruptcy, keep an eye on your credit report and credit score. Checking your credit reports from all three major credit bureaus ensures that no mistakes are tripping you up on your report. It’s also motivating to see your credit score gradually climb higher as your hard work pays off.
Our Program Helps You Rebuild Credit So You Can Get Credit Cards After Bankruptcy
If you’d like to learn more about how to get a credit card after bankruptcy or you want to know how to improve your credit, we can help. Contact the Law Office of Robert M. Geller at 813-254-5696 to schedule a consultation.