Getting Credit Cards After Bankruptcy
You will be able to get credit cards after your bankruptcy-but don’t!
You will find it surprisingly easy to get credit cards after a bankruptcy.
Credit card issuers know that you can’t file for a Chapter 7 discharge again for 8 years, plus they know that your ability to repay your debts is greatly increased since your debt has just been discharged in bankruptcy. This means that you are actually a lower risk debtor that someone who hasn’t filed bankruptcy. Therefore, credit card issuers are very likely to send you “pre-approved” credit card offers after your bankruptcy case is over.
However, I’m of the belief that no one should have credit cards, or at least none that allow you to carry a balance month-to-month. Specifically, I don’t have a problem with an American Express card that must be paid in full every month. But a “normal” revolving charge account? No way.
Most debit cards are treated just like a credit card, and that’s my suggestion: use a debit card. This issuers that you have the money in your account when you make purchases. If there is no money in the account, then you don’t make the purchase. Period.
Re-establishing Credit?
If you keep a vehicle that you’re making payments on after the bankruptcy, or are making a house payment, then you don’t need to do anything to re-establish your credit. Keep making your car and house payments, and NEVER BE LATE. This is all you need to re-establish a very positive credit history.
If you do not have a car or house payment after the bankruptcy, that’s ok, too. Your credit will get better on it’s own, as the negative entries on your credit history will affect you less and less the further behind you they get, resulting in a better and more positive credit history.
You don’t have to proactively do anything to make your credit better after the bankruptcy.