How to get a credit card after bankruptcy?

You can get a credit card after bankruptcy but it is a bit more difficult than in normal circumstances. Dealing with bankruptcy is hard. You basically have to restart building your financial status and rebuild your credit score. To do so, you'll need to open new credit accounts. Of course, getting approved for a credit card after bankruptcy is hard but certainly it is not impossible. You just have to know how to find one.

Here are a few tips on getting a credit card after bankruptcy:

Get a secured credit card - Secured credit card is one in which you open a special savings account with a bank, deposit some amount in the account, say $1000. Then this amount becomes your credit limit. This is bank's way to making sure that you do not default again. You also benefit from this arrangement since you can start building your credit history once again. Getting a secured credit card after bankruptcy is the easiest option. You are almost always guaranteed to get the approval for a secured credit card.

Another option is to apply for an unsecured loan. The criterion for approving the unsecured credit card is good credit history among other factors. Since bankrupt people don't have that, therefore it is very difficult for them to get this approved. However if you can get it, this is the best option available.

Get in touch with your bank or credit union. Explain them your situation and see if you are willing to give you a credit card. If you have had a good relationship and track record with them, they may get you a credit card on a reasonable interest rate.

Many times, credit card companies will know about your bankruptcy situation pretty soon. And you may start getting pre-approved credit cards. Since they know that you need to rebuild your credit history and there is a good chance you will accept the card, they are willing to give you the credit card. You should accept the card since it is for your own benefit. But make sure you understand the terms and conditions on the card. Read the fine print carefully.

Another option would be to get a co-signer. If you could get your family member, friend or relative to be a co-signer on your credit card application, it will increase your chances of getting the approval. But you need to be doubly careful while using your card so that you don't break the trust the co-signer has shown in you. The co-signer is equally responsible for the debt which you are going to take on the credit card.

Don’t just accept any first credit card you are offered. There are various things you need to consider while applying the credit card.

• Many credit card companies or banks will be happy to give credit cards after bankruptcy but the interest rates would be pretty high. The interest rates may vary from as low as 8% to as high as 25%.
• Another thing to consider is the application fee. There are various credit card companies which charge over $100 as application fees while others are free. Needless to say, you should opt for a free card over charged one.
• Another important thing to consider while getting credit card after bankruptcy is that the credit card company is reporting the credit history to the 2 main credit bureaus namely TransUnion, Equifax etc. Rebuilding your credit history is your main object in getting a credit card after bankruptcy; therefore this consideration is of utmost importance.

The best place to apply for your new credit card after bankruptcy is online. You can various companies who are willing to give you a credit card over the internet. You can search which companies are providing secured and unsecured credit cards and what are the terms on which they are willing to give the card to you, you can compare interest rates, terms and conditions, application fees etc on a single page making it much easier for you to decide upon the credit card after bankruptcy.

Check out other related hubs about bankruptcy which might be useful.

• How to go bankrupt?
• Loans after bankruptcy.
• How to find a suitable bankruptcy alternative?
• Medical bankruptcy
• How to get a credit card after bankruptcy?
• Do it yourself bankruptcy
• Buying a car after bankruptcy
• Life after bankruptcy discharge