After filing for bankruptcy, your credit score will lower and you might find it difficult to obtain a credit card. Over time, the impact of bankruptcy on your credit report will lessen, but in the meantime, there are ways you can work your way up to a new credit card.
As you adopt good credit habits, those habits become more important than your bankruptcy.
Monitor your credit report
Stay up to date with your credit report. Monitoring your credit report can give you insight into the good habits you should continue and where you need to work on your score. Additionally, you can catch suspicious activity quickly when you consistently monitor the report.
Consider a secured card
Before you can move on to a traditional credit card, continue applying for a secured credit card. Banks are more likely to offer secured credit cards to people with low credit scores or who filed for bankruptcy in recent history. To obtain a secured credit card, you make a deposit that serves as your borrowing limit.
If you cannot make payments on a secured credit card, the card issuer uses your deposit to cover your debts. In general, a secured card works like a traditional card. You can make purchases and repay them over time. Many card issuers also allow you to transition to an unsecured credit card over time.
Generally, secured cards have lower interest rates, making it easier to pay them off quickly. Many people like to have credit cards in case of emergency and following bankruptcy, you can still have credit in the future.