How to Get a Credit Card After Bankruptcy

By: Contributors

Man holding credit card in cafe Tara Moore/Taxi/Getty Images
Man holding credit card in cafe Tara Moore/Taxi/Getty Images

After a person has been made bankrupt, the first thing they want to do is to rebuild their credit rating. This will be necessary if you want to get a mortgage or a car loan. Having a credit card is an important step in rebuilding your credit rating. However, you will quickly realize that bankruptcy limits your options for obtaining a credit card. How long you will have to wait before you can get a new credit card after declaring bankruptcy depends on the issuing company. Be sure to read the conditions for any new card you're offered very carefully. You may find that you have very limited credit facilities, along with high fees and interest rates [source: Total Bankruptcy]. Read here to learn how to get a credit card after bankruptcy.

  • Apply for a secured credit card. You will be required to open a savings account before you're issued this type of a credit card, because the credit card debt will be secured by the money in the savings account. If you don't pay your bill, the credit card company will use the money in the savings account to cover the debt. This choice is for when you feel you have little chance of getting a regular card.
  • Apply for a pre-paid credit card. In this case, you pay the credit card company a sum of money in advance. You can then use your credit card for up to that amount. This will help you control your spending, as you will not be running up debts [source: Simon, Simon].