Rebuilding credit after bankruptcy takes time and patience, but securing a credit card can significantly accelerate the process.
After filing for bankruptcy, obtaining a credit card can be a crucial step in rebuilding your credit. Both secured and unsecured credit cards are available, although the specific card you qualify for will depend on your individual financial situation and credit score. Here are some options for both secured and unsecured credit cards:
Secured Cards:
- Capital One Platinum Secured Credit Card:
- Requires a minimum security deposit of $49, $99, or $200, which becomes your credit limit.
- No annual fee.
- Graduates to an unsecured card after 5-7 months of on-time payments.
- Discover it® Secured Credit Card:
- Minimum security deposit of $200.
- $0 annual fee.
- Earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, plus 1% cash back on all other purchases.
- OpenSky® Secured Visa® Credit Card:
- No credit check required, making it suitable for individuals with no credit history.
- Minimum security deposit of $200.
- $35 annual fee.
Unsecured Cards:
- Credit One Bank® Platinum Visa® for Rebuilding Credit:
- Designed for individuals with limited credit history or rebuilding after bankruptcy.
- No annual fee for the first year, then $99.
- Potential for high interest rates and fees.
- Petal® 2 “Cash Back, No Fees” Visa Credit Card:
- No annual fee or security deposit.
- Builds credit history while offering cash back rewards.
- Requires a minimum credit score of 576.
- Mission Lane Mastercard:
- No annual fee.
- Considers alternative data points like rent payments when evaluating creditworthiness, potentially benefiting individuals with limited traditional credit history.
Revvi Card
Revvi Card: This is a cash back card that is suited for people with poor credit. It has an annual fee of $75.00 for the first year and $48.00 thereafter
First Access Visa® Card
First Access Visa® Card: This card is available in multiple designs and charges an initial program fee, penalty fees, and an annual fee. The APR is on the higher side, but the card is easier to get than some other cards in this category
Total Visa® Card
Total Visa® Card: Suitable for those with bad credit, this card has a $300 credit limit and requires no security deposit. However, it does come with a one-time $95 program fee to open your account
Remember:
- Start with a secured card if your credit score is low. Responsible credit usage with a secured card can quickly improve your score, paving the way for an unsecured card later.
- Compare interest rates and fees before applying. Choose a card with low fees and a competitive interest rate to avoid getting into further debt.
- Build good credit habits. Make on-time payments in full each month and keep your credit utilization ratio low to improve your credit score steadily.