How to Apply for Credit Cards After Bankrupty

During 2009's economy, many people have been faced with unemployment and the inability to meet their monthly bills. As a result, bankruptcy is the only solution for some. Although it may feel like it, bankruptcy is not the end of the world. It is possible to apply for and be approved for credit after filing for bankruptcy. You just have to know which credit cards to apply for and how to gradually improve your credit rating.

Instructions

1

Wait until the bankruptcy petition is discharged. Most credit card companies won't entertain offering you credit if you are in the midst of a bankruptcy. They don't want you to run up your balance and then include your outstanding balance in your bankruptcy petition; therefore, you must wait until your bankruptcy is discharged before applying for a credit card.

2

Order a copy of the credit report after the bankruptcy is discharged, order a copy of your credit report. Sites such as AnnualCreditReport.com provide free credit reports annually. You want to make sure that the credit bureaus properly reflect the fact that the bankruptcy effectively wiped your credit slate clean. If you find that the bureaus are not showing your accounts as closed, you need to contact them to have them correct the report to reflect the effects of the discharged bankruptcy.

3

Apply for a secured credit card. On the heels of a fresh bankruptcy, the only type of credit you will be approved for is a secured credit card. A secured credit card means that you will have to collateralize the card 100 percent. For example, if you apply for a secured credit card with a $300 limit, you have to give the bank $300 in collateral.

4

Pay the secured credit card on time. After you apply for and receive the secured credit card, you should always pay your credit card on time in order to begin improving your credit rating. In addition, refrain from using the total available credit. Keep our balance below 30 percent of the available credit to help repair your credit score.

5

Graduate to a non-secured credit cards. After you have proven your creditworthiness, you stand a better chance of being approved for a non-secured credit card. It is recommended to wait at least 18 months of establishing credit with a secured credit card before applying for a non-secured credit card.