Bankruptcy can destroy your credit but the effects wear off over time. I’ve seen how stressful it can be, I’ve seen friends going through this process. But I’ve also seen how it’s possible to rebuild credit after bankruptcy.
If you’ve had to go through bankruptcy, you should look for ways to start rebuilding your credit to show creditors you’ve turned the corner and now exhibit good credit behavior. One way to do this is by opening a credit card.
Getting approved for credit cards after bankruptcy can be difficult, but it isn’t impossible if you know which cards to apply for. I’ve put together this list of the best credit cards after bankruptcy to help you start rebuilding your credit when you’re ready.
What’s Ahead:
Best credit cards after bankruptcy overview
Credit card | Best for |
---|---|
Credit One Bank® Platinum® Visa for Rebuilding Credit | Secured card with rewards |
Capital One Platinum Secured Credit Card | Potential credit limit in excess of your security deposit |
OpenSky® Secured Visa® Credit Card | No credit |
Indigo® Mastercard® Credit Card | Pre-qualification and a 60-second decision |
Milestone Mastercard® | Mastercard ID Theft Protection |
The Credit One Bank® Platinum Visa is a secured credit card that may fit your needs after bankruptcy. In particular, this card gives you free access to your Experian credit score and a summary of your credit report each month. This can help you monitor your attempt to rebuild your credit and see what is working and what isn’t.
Credit One Bank also states they regularly review your account for credit line increases which can help improve your credit utilization ratio and your credit score. You can choose your due date to make sure you have the best chance of making your payments on time every month, as well.
This secured credit card is one of the few cards for people with poor credit that offers credit card rewards. You can earn 1% cash back rewards on eligible gas, grocery purchases, and communication services like mobile phone, internet, cable and satellite TV services. Terms apply. That’s not a lot, but it’s still a good deal for those with poor credit.
This card charges a $75 for the first year. After that, $99 annually ($8.25 per month) annual fee.
The Capital One Platinum Secured Credit Card is a fairly flexible secured credit card that may be a good fit for those with a bankruptcy in their past.
The card automatically reviews your credit line in as little as six months. You can even choose your own monthly due date to help make things easier.
You can also get alerts about TransUnion or Experian credit report changes by using Capital One’s CreditWise tool.
Most secured credit cards offer you a credit limit equal to your security deposit. This card doesn’t necessarily follow that same rule. Based on your application, you will have to pay a $49, $99 or $200 refundable security deposit. That deposit gives you an initial credit line of $200.
This card has relatively few fees to watch out for.
There is a $0 annual fee and as for foreign transaction fees, there’s None.
Rebuilding after a bankruptcy can be a challenge, but OpenSky believes everyone deserves a second chance. That’s why the OpenSky® Secured Visa® Credit Card doesn’t require a hard pull on your credit report and you’ll get an instant decision on your application. So, if you have fair credit, poor credit, or even no credit, you can qualify for the OpenSky® Secured Visa® Credit Card and start rebuilding your credit score.
The $35 annual fee is lower than you’ll find at some other major credit card brands, which is helpful for keeping costs down, as is the interest rate of 21.64% (variable).
Late payment fees are $38 or less, and returned payment fees top out at $25 for this card.
The Indigo® Mastercard® is a no-frills unsecured card that you may qualify for after bankruptcy.
This card offers a quick pre-qualification with no impact on your credit score and a 60-second decision if you decide to apply.
Depending on the card you get approved for, you may have to pay an annual fee. The fee ranges from $0 - $99.
Watch out for late payment, over-limit and returned payment fees of up to $40 each.
The Milestone Mastercard® is another no-frills unsecured card that you may qualify for after bankruptcy. You can use their pre-qualification tool to see if you qualify before applying.
This card offers Mastercard® benefits which include Mastercard ID Theft Protection. This can be a useful service if you find yourself a victim of identity theft.
This card has many versions you may be approved for and the fees vary by card. You may be charged an annual fee of $35 - $99*.
Late payment, over-limit and returned payment fees are up to $39 each.
Summary of the best credit cards for bankruptcy
Credit card | Security deposit required? | Annual fee | Rewards | Credit score range |
---|---|---|---|---|
Credit One Bank® Platinum Visa® for Rebuilding Credit | Yes | $75 for the first year. After that, $99 annually ($8.25 per month) | 1% on eligible purchases (terms apply) | Poor or better |
Capital One Platinum Secured Credit Card | $49, $99 or $200 | $0 | None | Poor or better |
OpenSky® Secured Visa® Credit Card | $200 - $3,000 | $35 | None | No credit score needed |
Indigo® Mastercard® Credit Card | None | $0, $59 or $75 the first year and $99 thereafter | None | Poor or better |
Milestone Mastercard® | No | $35, $59 or $75 the first year and $99 thereafter | None | Poor or better |
How I came up with this list
I included both secured and unsecured cards in our list to give you options based on your needs. If your credit score hasn’t recovered enough to qualify for an unsecured card, a secured card will be easier to qualify for. Plus, they often report on-time payments to credit bureaus, making them perfect for credit building.
I also looked for cards with other features, such as rewards, to give you the widest list of credit card options if you’ve had a bankruptcy in your past. Believe it or not, there are a few bankruptcy cards out there that do offer rewards.
Summary
Now that you’re aware of the best credit cards after chapter 7 bankruptcy, it’s time to make a decision. If your bankruptcy has been discharged and you’re ready to rebuild your credit, consider applying for one of the above bankruptcy credit cards.
That said, credit cards are a great tool to build credit but can cause major headaches if you let them get out of control. After bankruptcy, you should focus on only charging expenses you can pay off in full. This way, you can ensure you can always make your monthly payments on time and you can start rebuilding your credit score.
If you know deep down that you can’t responsibly handle a credit card, consider other options to start rebuilding your credit after bankruptcy including credit builder loans.
All information about the Credit One Bank® Platinum Visa® for Rebuilding Credit has been collected independently by MoneyUnder30 and has not been reviewed by the issuer