Best Credit Cards After Bankruptcy

Andrew Reyes
Credit cards stacked and falling like dominoes.
Reading Time: 5 minutes

Filing for bankruptcy can devastate your credit score. In many cases, bankruptcy can drop a credit score by more than 150 points, depending on your original credit score.

Some credit card companies won’t work with individuals who have gone through recent bankruptcy because it presents too much financial risk. Even with a bankruptcy on your credit report, you will still qualify for several credit card options.

Credit Cards for People With Bankruptcies

Here are our 10 top picks for credit cards after bankruptcy.

Secured Mastercard® from Capital One

The Secured Mastercard® from Capital One is a great option for building credit and helping those with poor credit qualify for better credit cards in the future. It is a secured credit card that reports monthly to credit bureaus.  

To use the card, you will need to make a security deposit. In return, you gain access to a credit line of $200. By requiring a security deposit, Capital One can report positive history to credit bureaus.

Discover it® Secured Credit Card

The Discover it® Secured Credit Card allows borrowers to earn cash back while also repairing their credit. Since it’s a secured credit card, users will need to deposit using the card.

However, unlike many secured credit cards, it doubles as a rewards card. Those using this card will get 2% cash back when they spend money on gas and 1% cash back when they make any other purchase with the card.

During your first year with the Discover it® Secured Credit Card, Discover will match your cash-back rewards, doubling your rewards (with no minimum spending or maximum rewards).

  • Annual fee:$0;
  • Regular APR:22.99% variable;
  • Intro APR:10.99% for 6 months;
  • Rewards rate:2% cash back at gas stations and 1% cash back on other purchases.
  • Compare other secured credit cards here.

Indigo® Platinum Mastercard®

The Indigo® Platinum Mastercard® is an unsecured credit card for those with poor credit. Most users will immediately pre-qualify for the card with a soft credit check (meaning that the credit check won’t impact your credit score).  

Because the card doesn’t require a security deposit, users can keep more money in their pockets. However, if you struggle to pay off credit cards on time, using a secured credit card may be a better option.

  • Annual fee:$0 to $99;
  • Regular APR:24.9% variable.

OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card has an annual fee of $35 in exchange for a low APR of 17%. Most secured credit cards for those with poor credit have APRs higher than 20%, making OpenSky® stand out from other secured cards.  

With this card, the borrower can choose how much to pay for their refundable secured credit deposit as long as it exceeds $200. OpenSky® also provides its users with credit tips and access to a credit education page. They encourage their borrowers to increase their scores.

Credit One Bank® Visa® for Rebuilding Credit

Credit One Bank® Visa® for Rebuilding Credit is a secured credit card with rewards options. Users will receive 1% cash back on most purchases, including gas and groceries, as well as 1% cash back for services such as phone, internet, and TV.

Credit One Bank® Visa® for Rebuilding Credit automatically reviews your credit and reports to the major credit bureaus each month. They also automatically increase your credit line when you become eligible.

Milestone® Gold Mastercard®

This straightforward credit card accepts those with low credit and conducts a soft credit check without leaving a mark on your credit history. Most applicants will pre-qualify for the Milestone® Gold Mastercard®.

The Milestone® Gold Mastercard® has an annual fee of $35 with an APR of 24.9%. The card is unsecured, giving borrowers access to their credit whenever they need it.

  • Annual fee:$35;
  • Regular APR:24.9% variable.

Surge Secured Mastercard®

The Surge Secured Mastercard® is a great option for those who want to focus on building their credit without the risk of missing a payment. You will need to make an initial refundable deposit of $300 to receive access to funds from the credit card.

The creditor reports monthly to the three major credit bureaus to ensure that your credit score is steadily recovering from declaring bankruptcy. The application process for this credit card is fast and easy, giving you an answer within seconds of applying.

Additionally, users will receive 1% cash back on every purchase they make with the Surge Secured Mastercard®.

Assent Platinum 0% Intro Rate Mastercard® Secured Credit Card

The Assent Platinum 0% Intro Rate Mastercard® Secured Credit Card has an annual fee of $49. In exchange, they offer one of the lowest APRs for a secured credit card: 12.99%. Users can make a fully refundable deposit of $200 to $2,000, depending on their spending needs.

The creditor reports your credit activity monthly to the three major credit bureaus to help you establish new credit quickly.

First Progress Platinum Select Mastercard® Secured Credit Card

Those applying for the First Progress Platinum Select Mastercard® Secured Credit Card don’t need credit history or a minimum credit score to qualify, making it one of the best options for those whose credit has suffered after declaring bankruptcy.

The card has an annual fee of $35 and a low APR of 13.99%. Since this is a secured credit card, the creditor reports your history monthly to the three major credit bureaus and helps you establish new credit to improve your credit score.

Self Credit Builder Account + Secured Visa® Credit Card

Those interested in the Self account and credit card don’t need any credit history to be accepted since there is no credit check. This option offers both a credit-builder account and a secured credit card.

To qualify for the credit card, you will need to make three monthly payments on time and have at least $100 in your account.

The Credit Builder Account + Secured Visa® Credit Card helps borrowers learn good credit skills by managing both an account and a secured credit card without risk.

How to Get a Credit Card After Bankruptcy

Finding a credit card after you file for bankruptcy is very difficult. If you had a credit score of 700 or higher, filing for bankruptcy will drop your score by 200 points. If your credit score is lower than 680, when you go bankrupt it will fall around 130 to 150 points.

Qualifying for good credit cards is more difficult when you have a poor credit score. You can improve your credit score by:

In addition, you can qualify for credit cards after declaring bankruptcy by applying to creditors that are likely to accept you. For example, don’t apply for a credit card with a minimum credit score of 700 when your current score is 600.  

How to Pick the Right Credit Card After Bankruptcy

Because filing for bankruptcy can seriously damage your credit score, you will need to focus on using credit cards that will improve your credit score.

In many instances, the best credit card for after bankruptcy is a secured credit card. Secured credit cards focus on repairing your credit. Essentially, you will need to make a deposit before using the card.

You can spend the money that you deposited, similar to a debit card. Every month, the creditor reports positively to credit bureaus, which increases your credit score steadily.  

In addition to using secured credit cards, you may also want a card with:

  • Low APR (under 24.99%);
  • Low annual fees;
  • Rewards options.

After filing for bankruptcy, your main goal should be recovering your lost credit. Avoid credit cards with high APRs and high annual fees that could make it difficult to pay back the debt on your new credit card.

Learn more about other credit cards available that will help you rebuild your credit after bankruptcy.


Image Source: https://depositphotos.com/

 

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