When it comes to finding the best credit cards after bankruptcy, many people expect a tooth and nail battle, and to emerge on the other side with, at best, a secured credit card. But actually, it’s possible to get not only good cards but the best cards after a bankruptcy — if you follow a few key steps.
How it Works
It takes a lot for most people to declare bankruptcy and, as you probably already know, it’s not a particularly fun process. That said, most people who declare bankruptcy are in no hurry to repeat the experience. In other words, they’ve learned their lesson and will be scrupulous in maintaining their finances from here on out.
Creditors understand this, and that’s why you often can get the best credit cards after bankruptcy. If you’ve declared bankruptcy once, creditors know you’ll be determined to maintain a healthy credit rating in the future, and statistics bear them out on this.
Getting the best credit cards after bankruptcy
If you really want a credit card that shines, here’s what you need to do.
1. Mend your bad habits. A surprising number of creditors are willing to overlook bankruptcy, but give them any indication that you’re falling into your old ways, and they’ll justifiably assume you’re a bad risk.
2. Get a secured card or a small loan and spend a few months making regular, steady payments. This will re-establish your credit history on a more positive basis, demonstrating to potential creditors that you’re not only willing but able to make a change.
3. Talk to your bank after a few months with a secured credit card. You’ve already established a relationship there, and they know you personally, which makes them more likely to trust you. Often, the best credit cards after bankruptcy come from your bank — especially if you’ve been reliably using one of their secured cards.
Many people assume that bankruptcy is going to ruin their lives, and it’s true that the process is no fun at all. Declaring bankruptcy is a painful, difficult procedure, but it doesn’t have to mean the end of the world. In fact, sometimes you really can get the best credit cards after bankruptcy.
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