Whether it’s possible to get a credit card after bankruptcy – or whether you should get one – is a concern of many who go through the process. As long as you want to obtain credit cards after bankruptcy for the right reasons, it can be a very good way to help rebuild credit. The primary use of a credit card following bankruptcy should be to rebuild credit by making timely payments, not to purchase things you can’t afford and dig back into debt.
There’s a myth that you have to (or should) wait several years to get a credit card after bankruptcy so that the bankruptcy is wiped from your credit report. This is not necessary; it may actually hamper efforts to rebuild credit. Rebuilding your credit takes time, so starting soon after bankruptcy by obtaining a secured credit card may be a good first step.
Starting With Secured Credit Cards after Bankruptcy
Many people are able to apply for a secured credit card as soon as the bankruptcy is completed. A secured credit card requires a security deposit that serve as your credit limit. Make sure the card you chose reports to all three major credit agencies so that you can raise your score. If you keep your balance low and pay on time, you can slowly build your credit and may eventually be able to apply for an unsecured card.
A change in spending habits is often necessary in order to protect your future credit, so be sure to look into ways of saving money and being a responsible user of credit cards after bankruptcy. Applying to get a credit card after bankruptcy – such as a secured card or even store or gas cards – is among the initial phases of starting fresh after the bankruptcy process is complete.