The Six Ways You Can Get the Best Credit Cards after Filing for Bankruptcy

The idea of getting a credit card after bankruptcy may be daunting, but don’t swear off credit cards entirely.

One of the most important steps in starting over after bankruptcy is rebuilding your credit score, and a credit card can help you achieve that goal. Let’s look at some ways you can obtain the right credit card.

Six tips to get the credit card you need after bankruptcy in Texas

Here are six tips for getting credit cards after bankruptcy:

1. Sign up for a secured credit card. These types of cards are often available through credit unions or local banks, and require a deposit as collateral. Be sure the card issuer reports to all major credit reporting agencies, so you can use it to improve your credit score. Pay your bill in full and on time. Using a credit card responsibly is a great way to show lenders that you can meet your current obligations. Once your credit score improves enough, the deposit is often returned. At that point, you may qualify for a traditional credit card with better rates or rewards.

2. Get as much information as you can about a card’s eligibility requirements before applying. Whenever you apply for a credit card, your credit score dips slightly, so be fairly sure you qualify beforehand. Ultimately, if you are approved and use the credit card wisely, the temporary drop will be worth it.

3. Ask a friend or family member with a good credit score to co-sign a credit card. Understand this person is taking on substantial personal risk and will be liable if you do not pay your bills.

4. Become an authorized user on another person’s credit card. This is less risky for them, compared to co-signing. However, make sure their credit card reports authorized user activities to credit bureaus. Being an authorized user does not affect your credit score as much as having a card in your own name, but it can still be helpful.

5. Comparison shop and choose your credit cards wisely. Some cards offer cash back rewards on essentials like food and gas. You might be strapped for cash after bankruptcy, but don’t jump at the first card offer you receive. Since your credit score has just taken a hit, many of these card offers will have high interest rates and fees, or other harsh terms.

6. Consider a gas card or a retail card at places you frequent. These card issuers are usually more lenient about credit score requirements and accept people with credit blemishes.

Bankruptcy negatively affects your credit score—but not forever. Even though bankruptcy stays on your credit history for 10 years, your score can improve over that period of time. You can start improving your credit score immediately by obtaining a free copy of your credit report and checking it for errors.

Contact a skilled bankruptcy attorney in Texas today

For further guidance and advice about bankruptcy, consult an experienced Texas bankruptcy lawyer at Marcos D. Oliva, P.C.

Marcos Oliva

About the Author: Marcos Oliva Marcos Oliva is the principal attorney at Oliva Law. He is admitted to practice law in the State of Texas, the United States District and Bankruptcy Courts in the Southern District of Texas, and the United States Patent and Trademark Office.

Mar 29th, 2018


Recent Posts