Writer: Sean Garrity
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
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Facing financial challenges is tough, but sometimes our debts become overwhelming, and bankruptcy might be the only route to a brighter financial future. Yes, bankruptcy leaves a blemish on your credit, but with dedication and patience, you can rebuild it. The good news is, it’s a journey toward financial freedom.
After your bankruptcy is finalized, one of the first things you should do is check all three of your credit reports. Ensure that all accounts impacted by the bankruptcy accurately reflect their updated status or have been correctly removed.
When you’re ready to rebuild your credit, it’s important to dispel the myth that only secured credit cards are available after bankruptcy. These days, some lenders, particularly those specializing in subprime borrowers, might offer unsecured cards to individuals who have experienced bankruptcy. So, as you explore credit card options post-bankruptcy, you might be surprised to find that the selection is wider than you thought. Check out our expert-rated picks below, featuring both unsecured and secured card options.
Unsecured Cards (4) | Secured Cards (6) | Bankruptcy Basics
Top Unsecured Credit Cards to Apply for After Bankruptcy
The main reason many people opt for unsecured credit cards instead of secured ones is the need for a deposit. With a secured credit card, you have to make a deposit, which usually sets your credit limit. On the other hand, an unsecured card doesn’t require a deposit, even though the approval criteria might be more stringent.
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don't Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability - Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
+See More Unsecured Credit Cards
A savvy way to see if you might qualify for a specific card without impacting your credit score is to explore pre-qualification offers. Many issuers provide a pre-qualification process that usually involves only a soft credit check, which won’t affect your credit score.
While being pre-qualified for a specific credit card doesn’t mean you’re guaranteed acceptance, not being pre-qualified could indicate that you don’t yet meet the card’s requirements. It might be smart to hold off on applying until you’re more likely to be approved.
Top Secured Credit Cards to Apply for After Bankruptcy
If an unsecured credit card isn’t in the cards for you or you prefer to control your credit limit with a deposit, secured credit cards are a fantastic choice. Since these cards are backed by your deposit, the issuer faces less risk if you’re unable to pay your balance.
Because they’re backed by a deposit, secured credit cards typically have lenient credit requirements, making them accessible to almost anyone. They also serve as a solid starting point to rebuild your credit score, which can significantly drop during bankruptcy.
- No minimum balance requirements*
- No credit check**
- 2% cash back on category of choice with direct deposit***
- The perks of credit building meet the best of banking****
- Chime Checking Account required to apply for the Chime Visa® Credit Card
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.
*Money added to Chime CardTM will be held in a secured deposit account as collateral for your Chime Card, and you can spend up to this amount. You can use money deposited in your Secured Deposit Account to pay off your charges at the end of every month.
**Out-of-network ATM withdrawal and over the counter advance fees may apply.
***With a qualifying direct deposit, earn 2% cash back on category of choice on eligible secured Chime Visa® Credit Card purchases.
****On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.
- The secured Self Visa® Credit Card* requires no credit check or minimum score.
- Reports to all 3 major credit bureaus to establish and build credit, with free access to your credit score.
- Secure your credit line with a refundable security deposit as low as $100.**
- Deposits are returned upon account closure after settling outstanding balances.
- *The secured Self Visa® Credit Card is issued by Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A., each Member FDIC.
- **Qualification for the secured Self Visa® Credit Card is based on meeting eligibility requirements, including income and expense requirements and establishment of security interest. Criteria subject to change.
- Earn up to 10% cash back on everyday purchases
- No credit check required – 89% approval rate with zero credit risk to apply!
- Boost your credit score fast—2 out of 3 opensky® cardholders see an average increase of 47 points after 6 months
- Track your progress with free access to your FICO® score in our mobile app
- Build your credit history with reporting to all three major credit bureaus: Experian, Equifax, and TransUnion
- Seamless payments—add your card to Apple Pay, Google Pay, and Samsung Pay
- Start with just $200—secure your credit line with a refundable deposit
- Fast and easy application—apply in minutes with our mobile-first experience
- Flexible payment options—pick a due date that works for you
- More time to fund—spread your security deposit over 60 days with layaway
- Join 2 million+ cardholders who have used opensky® to build better credit!
- No annual or hidden fees. See if you’re approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get at least a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One’s mobile app
- Top rated mobile app
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you’re approved in seconds
- Put down a refundable $200 security deposit to get at least a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Monitor your credit score with CreditWise from Capital One. It’s free for everyone
- Top rated mobile app
+See More Secured Credit Cards
One of the reasons secured credit cards can be preferable to unsecured cards is the ability to obtain a much higher credit limit. Unsecured cards for poor credit tend to cap limits in the low hundreds of dollars, while some secured cards offer the ability to obtain a credit limit as high as $5,000 so long as you can make a deposit of that amount.
A high credit limit can be very helpful for your credit score, especially if you tend to make large or frequent purchases. That’s because your utilization rate, or the ratio of available credit to debt, can be worth up to 30% of your FICO credit score. A higher credit limit can help you maintain a lower utilization rate, which is better for your credit score.
Bankruptcy Basics
Bankruptcy is often seen as a last resort for those drowning in debt. The financial impact of filing for bankruptcy can differ depending on the type you declare and may include debt forgiveness or modified repayment terms. For individuals, Chapter 7 and Chapter 13 are the most common options.
No matter which bankruptcy option you choose, expect some impact on your credit. A bankruptcy discharge can linger on your credit report for seven to 10 years, depending on whether you filed for Chapter 13 or Chapter 7 bankruptcy, respectively.
Obtaining a Bankruptcy Discharge
A bankruptcy discharge is the goal of the bankruptcy process and is the actual legal order that says you are no longer obligated to pay any discharged debts. Once discharged, creditors holding a debt may no longer attempt to collect on that debt, either by mail, phone, or in person.
Each debt up for discharge has a specific period during which objections to the discharge can be filed. If no one challenges the discharge, debtors usually receive it automatically.
Chapter 7 vs. Chapter 13 Bankruptcy
For the most part, the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is a matter of scope and qualification. Under Chapter 7 bankruptcy, many of your unsecured debts can be completely wiped out, including credit card debt and medical bills. When you file for Chapter 13 bankruptcy, you’ll be required to pay back some portion of your existing debt.
With Chapter 13 bankruptcy, you’re gradually paying off your debts, meaning you won’t receive a final discharge until all plan payments are made, which can take up to three to five years. In contrast, Chapter 7 offers a quicker process, with a full discharge typically within six months.
That being said, not everyone is eligible for Chapter 7. If your income is too high or you have significant disposable income, you might not be able to file for Chapter 7. Additionally, if you wish to retain ownership of any property or collateral used for a secured debt, such as real estate and vehicles, Chapter 13 bankruptcy is the preferred route.
Rebuilding Your Credit After Bankruptcy
Even when your debts feel overwhelming, bouncing back from bankruptcy is totally possible. Regardless of how you handle the bankruptcy journey, staying patient is key to restoring your credit. While it won’t take the entire seven to 10 years to notice improvements, achieving a credit score over 700 could take a few years post-bankruptcy.
To rebuild your credit, it’s essential to demonstrate good financial habits, like consistently maintaining your credit accounts in good standing. Resist the temptation to apply for many credit cards, thinking it will boost your credit quickly—this can backfire. Focus on using one or two cards responsibly and make sure you pay off your balances in full each month. With persistence, you’ll see your credit steadily improve.
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