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.
Capital One Platinum Secured Credit Card
In A Nutshell
If you are worried that you will not get approved for a conventional credit card or have been rejected in the past, the Capital One Platinum Secured is an excellent option. It’s rare to find one that doesn’t charge an annual fee and Capital One will automatically review your credit limit in as little as six months.
Read review- Poor
What We Like:
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Put down a refundable security deposit starting at $49 to get a $200 initial credit line.
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Be automatically considered for a higher credit line in as little as six months with no additional deposit needed.
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No annual fee and no foreign transaction fees.
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
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.
OpenSky® Secured Visa® Credit Card
In A Nutshell
The OpenSky® Secured Visa® Credit Card is a secured credit card that doesn’t require a credit check to apply. Whether you have poor credit or no credit at all, OpenSky is an opportunity to improve your credit history.
Read reviewWhat We Like:
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No credit check needed to get approved for this card.
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Choose your own security deposit between $200 – $3,000 and that becomes your credit line.
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On-time payments will be reported to all three credit bureaus, so you can start building credit responsibly.
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The annual fee is just $35, and OpenSky® does not charge any application, servicing, or processing fees.
- No credit check to apply and find out instantly if you are approved.
- OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years
- Get considered for a credit line increase after 6 months, with no additional deposit required
- You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months
- Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card
- Nearly half of OpenSky cardholders who make on-time payments improve their FICO score 30+ points in the first 3 months
- Your refundable* deposit, as low as $200, becomes your OpenSky Visa credit limit
- Easy application, apply in less than 5 minutes right from your mobile device
- Offer flexible payment due dates which allow you to choose any available due date that fits your payment schedule
- *View the cardholder agreement
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 19.64% (variable).
Late payment fees are $38 or less, and returned payment fees top out at $25 for this card.
Indigo® Mastercard® Credit Card
In A Nutshell
The Indigo® Mastercard® Credit Card offers consumers with poor credit the opportunity to use a credit card for everyday spending. Pre-qualification is quick and easy and if you have the credit profile needed, you might be able to secure a credit card with no annual fee. ($0 – $99 annual fee).
Read reviewWhat We Like:
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$0 – $99 annual fee
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Easy pre-qualification process
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Previous bankruptcy is OK
- Easy pre-qualification process with fast response
- Less than perfect credit is okay
- Online servicing available 24/7 at no additional cost
- Unsecured credit card, no security deposit required
- Account history is reported to the three major credit bureaus in the U.S.
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.
Milestone Mastercard®
In A Nutshell
If you have lousy credit and are looking for a way to build it back; the Milestone Mastercard® is a strong option. There’s a quick pre-qualification process with no impact to your credit score, modest interest rate and an annual fee of $35 – $99.
Read reviewWhat We Like:
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$35 – $99 annual fee
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Easy pre-qualification process
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Previous bankruptcy is OK
- Instant pre-qualification is available for those who qualify
- Less than perfect credit is okay
- Access your account online or from your mobile device 24/7
- Account history is reported to the three major credit bureaus in the U.S.
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 | None | 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
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