If you’ve filed for bankruptcy, you’re likely wary of taking on more debt. However, establishing a new line of credit with a moderate limit is a good way to begin to rebuild your credit score and learn to make wise financial decisions.
Here are 8 of the best credit cards to apply for after bankruptcy. This list has been updated as of April 2017 and will be updated every 90 days to ensure we are providing you with as many options as possible. Below are what we found to be the best shot someone has at rebuilding after a recent bankruptcy.
This unsecured credit card accepts applicants with poor credit, including those with past bankruptcies. To be accepted, applicants must have a checking account. The initial limit is typically $500, and monthly reporting to all three credit bureaus means that if you pay off your balance on time each month, you’ll see your score start to rise. The card can be used to shop wherever MasterCard is accepted and free online account access is available online 24/7.
Capital One Secured MasterCard
Unlike most secured credit cards–those in which you have to make a deposit to qualify–this card from Capital One has no annual fee. Accepted applicants will be asked to pay a security deposit of either $49, $99, or $200, and the card has a credit limit between $200 and $3,000. The annual interest rate is 24.9 percent and there are no additional fees on transactions processed outside the United States, making this card a good choice for travelers.
Credit One Bank® Platinum Visa®
In addition to helping you rebuild your credit by making monthly reports to the credit bureaus, this card allows you to keep track of where you stand with free online access to your report summary and score from Experian. Not only can you open this card with no deposit, but you also receive 1 percent cash back on all purchases and can choose your monthly payment due date. Approval takes just 60 seconds. The interest rate is 15.90% – 24.40% variable.
Total Visa Card
This unsecured card offers fast and easy approval for those with a checking account, even with prior bankruptcy. This Visa card is accepted throughout the nation and offers manageable, flexible monthly payments, low processing fees, and monthly credit bureau reporting.
Wells Fargo Secured Visa Credit Card
Another secured card, this option from Wells Fargo requires a $300 deposit that is then used as the credit limit. While that may seem low, this card also offers benefits such as auto rental collision damage waiver coverage, emergency card replacement, and a roadside dispatch service, so it’s a good card for commuters. There’s also an insurance policy that covers cell phone damage or loss up to $600 with just a $25 deductible. This card carries a standard interest rate of 18.99% APR as well as a low annual fee of $25.
Fingerhut Credit Account
Those who enjoy online shopping will appreciate this card, which allows you to shop from online stores such as Samsung, KitchenAid, and more. It offers low monthly payments, a fast and easy application process, and comes with a promo code to save $50 from your first order of $200.
BankAmericard Secured Credit Card
While this card requires a deposit of $300, those who apply can qualify for a credit limit of up to $4,900 based on monthly income, ability to pay, and the size of the security deposit. What’s more, your account will be reviewed after the first 12 months and your deposit return if you remain in good standing. This card has a $39 annual fee and an interest rate of 20.24 percent.
If you’re concerned about damaging your credit further by applying for new accounts after bankruptcy, this is a good card to choose as the application process will not affect your credit score. However, it does report to the credit bureaus, which positively impacts your score. The interest rate is 23.99 percent. Whether you opt for a secured or unsecured card, applying for a new line of credit after bankruptcy can be a smart way to establish a bright financial future.