Starting over after bankruptcy can be a daunting task, but it's crucial to rebuild your credit and get back on the path to financial stability. One of the best ways to do that is by getting a credit card tailor-made for people who have filed for bankruptcy. In this article, we'll be discussing the top credit cards for those looking to start anew after bankruptcy.
Best Credit Cards For After Bankruptcy Table of Contents
Why Get a Credit Card After Bankruptcy?
Why Get a Credit Card After Bankruptcy?
It may seem counterintuitive to get a credit card after bankruptcy, but there are several reasons why it's essential:
- It helps rebuild your credit by demonstrating responsible credit use.
- It grants access to emergency funds when needed.
- It allows for more significant future loans such as mortgages or auto loans.
What to Look for in a Credit Card after Bankruptcy
When choosing a credit card after bankruptcy, consider the following factors:
1. Easy approval
Some credit card companies have cards specifically designed for people with poor credit history. Look for those options as they're more likely to approve your application.
2. Low fees
Because you're rebuilding your finances, avoid cards with high annual fees or costly maintenance fees.
3. A secured card option
Secured credit cards require a cash deposit acting as collateral. They're helpful for building credit without overspending, and they're often easier to get approved for after bankruptcy.
Top Credit Cards for After Bankruptcy
1. Discover it Secured Card
- No annual fee
- Minimum security deposit of $200
- 2% cashback on the first $1,000 spent at gas stations and restaurants each quarter; 1% cashback on all other purchases
- Automatic monthly credit limit review after eight months
2. Capital One Platinum Secured Card
- No annual fee
- Flexible security deposits starting at $49, $99, or $200 based on creditworthiness
- Automatic credit limit increase review after six months
3. Credit One Bank Platinum Visa for Rebuilding Credit
- Annual fee ranges from $0 to $99, depending on creditworthiness
- Credit limit increases available upon request after six months
- 1% cashback on eligible purchases
Best Credit Cards For After Bankruptcy Example:
John filed for bankruptcy, and after being discharged, he's looking to rebuild his credit. He's not sure whether to choose a secured card or one with rewards.
After researching, John decides to go for the Discover it Secured Card. He likes the no annual fee, the cashback rewards, and the monthly credit limit reviews. He uses the card responsibly and keeps his utilization low. Over time, John's credit improves, and he becomes eligible for an unsecured card with higher credit limits and more significant rewards.
The path to financial recovery after bankruptcy can be long and challenging. However, you can speed up the process by choosing the right credit card to suit your needs and help you rebuild your credit. Hopefully, our guide on the best credit cards for after bankruptcy will empower you to make informed decisions and lead you towards financial stability.
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