Looking for bankruptcy friendly credit cards? We’re here to help you search in the right place. If you’ve been through a bankruptcy, it’s a process to rebuild. You get a clean slate to start over with your finances. Bankruptcy terms may include reducing or removing interest and penalties. Some arrangements remove payments altogether. That’s a great opportunity for a fresh start.
You’ll have a chance to make new credit habits. Freeing up money will also give you cash to build credit. Still, your past discretion may try to hold you back. Even when the bankruptcy includes repayment, previous creditors may hold it against you. Some won’t ever welcome you back again. New ones may also deny you credit. Don’t let this discourage you!
Build Your Credit with Bankruptcy Friendly Credit Cards
Overcoming bankruptcy is possible. It takes a little time. There’s always a company willing to take the risk. It could be a chance for them to build their company. They may also offer products for higher interest rates. Some companies need collateral or a deposit to extend credit. It all depends on time and knowing what company will take more risk. When working to rebuild, it’s best to start off small.
A good mix of revolving and installment credit helps prove worthiness. Work on getting a bankruptcy friendly credit card first. You can find credit card offers of all types for all levels. The stipulations are different for each one too. Do research to find a fair card. Prove yourself worthy by paying your balance on time. From there, you can work your way up to installment credit.
How to Get Bankruptcy Friendly Credit Cards?
Start by finding cards that are more likely to accept those with flawed credit. Many credit website will show your credit report and score. Along with that, they may offer advice on where to apply for credit. Your report will show details about the bankruptcy. If they are using these details to make suggestions, you may have a better chance of approval.
You can also contact your local bank or credit union. A long term relationship with them may make it easier to get a credit card. If your accounts are still in good standing, they may give you credit for a solid banking history. Most banks can also offer secured or unsecured cards. Unsecured cards have been a popular rebuilding option with banks. A few key differences between the cards may help you get approved.
Secured .vs. Unsecured Credit Cards
Unsecured cards are regular credit cards. There’s no stipulation to get an unsecured card. Applicants aren’t required to give collateral or a cash deposit. If the credit card holder fails to pay, the company won’t have anything connected to seize. They will try to collect the unpaid balance. They’ll also report the negative activity to credit reporting agencies. Depending on the amount, lenders may also set up wage garnishments.
Secured credit cards gives those with bad credit or no credit a chance to build. It helps boost your score by immediately giving more available credit. The lender also reports activity on the card more often. Credit card companies ask for a cash deposit to apply. The deposit must be between $300 and $5,000. That amount is also the available balance on the card.
The deposit remains frozen during the life of the card. Borrowers will receive the deposit back when they’re approved for an unsecured card. If they choose to cancel the secured card with a zero balance they’ll also receive the deposit back. If they abuse card privileges, the deposit goes toward paying the outstanding balance.
List of Bankruptcy Friendly Credit Cards
Even if you’re not applying for a secured card, you may still have to come up with funds. Those with a blemished history may have to pay annual fees and high interest rates. Still, you should recover with time after getting approved. Then you’ll be able to apply for credit cards with better terms. Here are a few secured and unsecured bankruptcy friendly credit cards.
Secured Credit Cards to Rebuild Credit
AeroMexico Visa Secured Card
This card let’s you earn travel miles while building credit. You get travel perks like a $99 airline companion ticket, 5,000 bonus miles, and up to 2.8% rewards. Spending on gas and groceries gets you even more rewards.
Discover it Secured Card
If you’ve mastered paying off your balance, this one’s for you. The APR is high, but to are the benefits. There’s cash back of 1-2% on every qualifying purchase each quarter. The company will also review for an upgrade after only 8 months.
Capital One Secured MasterCard
Those serious about rebuilding their credit will appreciate this card. Cardholders receive free access to their credit score. Higher deposits also give more than the normal matching credit limit.
Savings Secured Visa Platinum Card (State Department EMV Secured Card)
This card has a very low interest rate compared to other cards. It’s also available for those with a score lower than 600. If you have trouble paying off the balance each month, you won’t have problems with this secured card. Another plus is no annual fee.
Discover it for Students
This card is perfect for trying to build good credit history while studying. The best part is students aren’t even required to pay a deposit.
Other secured card recommendations:
- First Progress Platinum Elite MasterCard Secured Credit Card
- First Progress Platinum Prestige MasterCard Secured Credit Card
- Primor Secured Visa Gold Card
Unsecured Credit Cards for Bad Credit
- Credit One Bank Platinum Visa
- Total Visa
- First Premier Visa First
- Premier MasterCard
- Indigo Platinum MasterCard Credit Card
- Milestone MasterCard
Time Heals All Wounds (Even Bankruptcy Wounds)
You’re not the first one to experience bankruptcy. That means it’s not the end of the world if you do. Chapter 7 and Chapter 13 are there to help people recover from overwhelming debt. The important thing is that you learn from the experience and do better. This time around, pace yourself and use credit responsibly. When you find a bankruptcy friendly credit card, make payments on time. Slowly add to your building process so creditors will believe in you again.
Apply for Bankruptcy Friendly Credit Cards Now!
You know the proper tool and method to rebuild credit after bankruptcy. Now, it’s time to apply. It’s easy to apply for credit online at Business Financing Hub. It’s a convenient resource for business owners and consumers. Use the comparison tools to find the best credit cards. Compare their options and features. You can also apply for business and personal credit cards on the Business Financing Hub website.