How to Get a Credit Card After Declaring Bankruptcy

Re-establish credit with a credit card, after declaring bankruptcy.

Get a credit card after declaring bankruptcy and quickly get your credit history back on track. A bankruptcy filing can eliminate credit card debt and other loans. But after a filing, credit scores typically nosedive, and recovering after bankruptcy involves acquiring new credit accounts and making a fresh start. It's difficult to get new credit after bankruptcy, but with secured credit cards, you can get a credit card after declaring bankruptcy.

Instructions

1. Research secured credit card fees prior to completing an application. Fees are common with secured credit cards, and banks tend to charge an account set-up fee, a monthly maintenance fee and an annual fee. Fees vary from bank to bank. Speak with a few financial institutions beforehand to compare fees.

2. Prepare yourself for paying a security deposit. You can't get a secured credit card without first paying a security deposit (collateral). Banks determine the card's credit limit based on your deposit. For example, if you submit a $400 security deposit, you can expect a $400 credit limit.

3. Complete your application, and provide the bank with a check in order for it to open your line of credit. After choosing a bank, complete and submit your application for approval, and include your security deposit with the application. Deposits protect the bank in the event that you default or stop making credit card payments.

Tips & Warnings

• Secured credit cards are available to people with no credit history or with bad credit.

• After demonstrating a good payment record, some banks automatically convert secured credit card accounts to unsecured accounts, and then refund the initial security deposit.

References

• Bankrate; Starting Over After Bankruptcy; Don Taylor; May 2004
• Bankrate; 10 Questions Before Getting Secured Credit Cards; Pat Curry; August 1999

Resources

• Read this Article in Spanish