Will You Still Be Able to Get Credit Cards After Bankruptcy? Find Out Here
For many people just coming out of their bankruptcy proceedings, a common question in this hire purchase society is whether or not you will be able to immediately obtain credit cards after bankruptcy. The simple answer is no. You will not be able to get the typical unsecured credit cards after bankruptcy, at least not until a couple of years after anyway. There will be those with ludicrously high interest rates, of course, who will offer anyone a credit card, though given the financial problems you have just rectified, it probably is not a good idea to go ahead and get in anymore problems!
One credit card type you really should avoid at all cost is one that claims no credit check. The interest rates on these are invariably absolutely huge. The credit limit tends to be around $300, but, despite claiming no set up fees, the small print will usually stipulate lots of difficult to understand fees, which are then applied to your balance immediately upon taking the card out, leaving you usually with around $100 credit! This is a bad idea and could lead to you finding yourself in more trouble.
In terms of credit cards after bankruptcy however, secured credit cards are a great way to go. Essentially, many banks now allow you to deposit funds into a savings account and your credit card is secured against those funds. Your credit limit is whatever you put in there. Making regular repayments to a credit card of this sort is a great way to be able to go about improving your credit card as well and for that reason, this can be a very good thing to do. If you want to extend your credit limit, just add more money to the savings account! That way you get a credit card and bank knows you have collateral backing it up.