How to Get a Credit Card After Bankruptcy

Getting a credit card after bankruptcy may seem like a daunting task. Bankruptcy can wreck your credit score and make it difficult or even impossible to get a house, a car or any kind of loan. Bankruptcy can last on your credit history for up to 10 years, and even after that you are legally required to inform potential creditors and loan agencies of your prior bankruptcy. While it might not be possible to get a 0 percent interest credit card quite yet, there are many options available when it comes to getting a credit card after you've filed for bankruptcy.

Of course, it's important to be careful about what credit card you apply for and accept. Many companies will offer high interest credit cards with ridiculous fees, making it very difficult to keep up with the payments. Therefore, anyone wanting to get a credit card after bankruptcy needs to make sure they're not applying for just any credit card offer they receive. Read on to learn more about how to get a credit card after bankruptcy.

While it may seem surprising, it's actually not that difficult to get a credit card after you've filed for bankruptcy. In order to get your credit score back up, it's important that you actually start using credit again. Of course, if you are very bad at using credit responsibly, it's very important that you either start to change your habits drastically, or that you have someone managing your books for you so that you don't spend on anything you can't afford. If necessary, you should possibly even avoid getting a post bankruptcy credit card at all. But if you're willing to change your spending habits and keep yourself in a good financial position, then there are a variety of credit card options out there.

One of the best ways to get a new credit card after bankruptcy is to get a department store credit card, a retail store card, or a gas credit card. Be careful not to overspend on these cards or use them irresponsibly however, as they can have high interest rates and penalty fees for late payments. It's not necessary if you get a credit card that you spend on it to help build your credit.

A good option is to get a secured credit card. This is one of the best ways to get a new credit card with bad credit. Essentially, a secured card is one in which your credit limit is set to whatever amount you are willing to deposit into the issuing company when signing up for your new card. In other words, if you deposit $300 into the issuing bank, you will get a credit limit of $300. While it may seem low, the purpose of this kind of credit card is not to spend on it, it's to get your credit score high enough again that you're able to get an unsecured card. It's recommended that if you do spend on your card, you do not spend above 30% of the credit limit. Make sure you're making payment on-time, every month, for the exact amount due. Don't put anything on your card that you know you're not going to be able to pay in full the next month.

Whatever card you get, be sure to read the terms in full. Many companies are dishonest and will try to screw over applicants attempting to get a credit card after bankruptcy. They will charge extremely high application fees and the interest rate will be unreasonable high. Instead, try to get a card with a reasonable interest rate and no application fee. Ideally, if you get a secured card, that card should become unsecured within about a year if you make on-time payments every month and show good payment and spending habits.

Overall, if you're intending to get a new credit card after filing bankruptcy, make sure you're ready to start spending responsibly. Know the terms of your credit card and real all of the paperwork thoroughly. Don't apply for applications willy-nilly, since these can actually harm your credit score. Instead, just apply for 1 or 2. Lots of bank companies send out credit card offers to everybody, even to people who aren't eligible. Try calling the credit card company before sending in an application to see what their requirements are, and whether or not you fit their criteria. Within time, if you've been making payments on time and haven't spent too much on your credit cards (i.e. maxed them out), your credit score should gradually improve, making it possible for you to upgrade to a better card. Getting a new credit card after bankruptcy is possible.