Can You Get A Credit Card After Bankruptcy?

After you file for bankruptcy life can be more difficult than before. Getting a loan can be next to impossible. You have to work on rebuilding your credit history and to do so need to be allowed to get more credit accounts. But because you filed for bankruptcy, getting approved for a credit card is challenging. Don't lose all hope yet though, there are creditors who will help you get approved and rebuild your credit score. You just have to wade through all the many offers to find a decent one that will allow you to improve your credit score and not cost you a fortune while you're at it.

Pre-approved Credit Card After Bankruptcy

You may have noticed that after you filed for bankruptcy, you got many more preapproved credit offers than before. This is because credit card companies target those with bad credit because they can charge more. They can charge more because people with bad credit are usually desperate to get their credit score back up where used to be. So they are willing to pay more fees and interest rates than those with good credit. If you decide that you want accept one of these pre-approved credit offers, you do be careful that you read all the terms and stipulations because many will have exorbitant interest rates associated with the cards. Some can be as high as 30%. But if you can find a good deal these preapproved credit cards can be a very good way to rebuild your credit. Just make sure that you make your payments on time and that you never go over 50% of your credit limit.

Secured credit card after bankruptcy

Another place you can go to try and improve your credit score after bankruptcy is a credit union. Many credit unions have their own credit cards and you may even be able to get a secured credit card. Secured credit cards are those where you put down a down payment with a bank or credit card company and you get credit in exchange. That means you put down $1000 to get $1000 credit with them. And if you make all your payments on time for several years, they may even switch account to a unsecured credit card. That means you to keep your credit limit but get your down payment back.

If you're unable to get any preapproved or secured credit cards, you can always try getting a cosigner. A cosigner can allow you to get a unsecured credit card with a major credit card company that you would otherwise not be able to qualify for. You have to make sure that the cosigner has good credit otherwise it is a pointless exercise. Usually you get a credit card with a good interest rate this way, and repair your credit at the same time. Some come with interest rates as low as 8 percent. But like always, make sure you always make your payments on time. I can't stress that enough.

So which type of credit card should you get after bankruptcy? Really whichever type you can qualify for. If you don't want to pay a ton for a bad credit credit card, a cosign option is probably your best bet. But you have to find someone who is willing to cosign for you. A secured credit card is probably the next best bet. And finally the least desirable of them all is the unsecured credit card. This is because your credit is so bad after bankruptcy that the fees will be extremely high and not worth it unless it is your only option.