Getting Credit Cards after Filing for Bankruptcy

I often have clients voice concern over obtaining credit cards after filing for bankruptcy. While it is true that bankruptcy can help you discharge your debt, it can also affect your credit. Surprisingly, in many cases your credit score will improve after filing bankruptcy. Why? Think about it from a lender’s perspective. You discharged debt and are now better able to pay on a loan. You can rebuild your credit over time by taking out new credit, displaying financial responsibility, and paying your bills on time. However, while some credit cards offer worthwhile features, others have high rates and charge costly additional fees.

Here are some tips

Below are a few tips on how to get the best credit cards after filing for bankruptcy in Denver:

  • Browse offers: After bankruptcy, you may be shocked when you receive your first credit offer in the mail. Resist the temptation to accept the offer. Many predatory creditors target post-bankruptcy consumers. Instead, make a chart detailing the pros and cons of multiple offers to identify worthwhile cards. It’s also important to keep in mind that some creditors have strict rules when it comes to accepting bankruptcy applicants.
  • Apply for a secured credit card: Many of the unsecured creditor card offers you receive may have ridiculous annual fees and late fines. To avoid these unfair practices, you should apply for a secured credit card instead. With a secured card, you provide a security deposit equal to your credit limit. The card functions like a normal credit card, but the security deposit is then used as collateral if you default on your loan.
  • Find a card with functional features: You might be surprised to learn that there are secured cards that have pretty worthwhile features. For example, the Discover Secured card promotes the rebuilding of credit and offers 2% cash back rewards.
  • Pay bills on time: A big part of rebuilding your credit is about paying your bills on time. This includes existing credit cards as well as utilities. Paying your bills on time will improve your credit score as well as the credit card options available to you.
  • Most importantly, in order to improve your credit score make sure the new credit card reports your timely payments to the credit bureaus.

Our Denver bankruptcy attorneys can help you find a path forward

Yes, bankruptcy can damage your credit rating. But that does not mean you have to fall victim to predatory lenders and their unsavory practices. If you are considering bankruptcy, our lawyers at Long & Long in Denver can review your case and help you find the right path forward.