How to Get a Credit Card After Bankruptcy

After bankrutpcy, it is important to make a fresh start and rebuild your credit history. To do so, you'll need to open new credit accounts. Of course, getting approved for a credit card after bankrutpcy is hard. Even so, many creditors are eager to help you get approved.

Difficulty: Moderate

Instructions

1. Accept a pre-approved credit card offer. After a bankruptcy, expect to be bombarded with credit card offers. Since a bankruptcy destroys your credit rating, lenders know how important it is for a person to quickly re-build. Hence, many credit card companies target recent bankrupt individuals and offer them easy credit.

2. Know the terms. Before accepting a pre-approved credit card offer after a bankruptcy, read the terms carefully. The interest rate on these credit cards are high - perhaps 29 or 30 percent. In addition, a few bad credit credit cards have annual fees, monthly maintenance fees and excessive late fees.

3. Contact your bank or credit union. Your bank or credit union may be willing to approve you for a reasonable rate credit card, especially if you have a good track record with them. Explain your situation and ask for the lowest rate possible.

4. Get a secured credit card. After bankruptcy, getting approved for an unsecured credit card is tough. On the other hand, you can get approved for a secured credit card. Simply put down a down payment with a bank or credit card company and receive a credit card. Persons who submit a $500 down payment receive a $500 limit. Once you make regular payments for two years, the credit card switches to an unsecured account, and you get your deposit back.

5. Get a co-signer. Ask a friend, relative or spouse to be a joint applicant on a credit card. For this method to work, the other person must have good credit. This will help you get a credit card with a decent rate. However, if you fail to make payments, the other person becomes responsible for the debt.