Can I Get Credit After Bankruptcy?

Yes. If you have filed bankruptcy, you should still apply for a credit card. The credit card issuer will look at your income and expenses. If your income is above the federal poverty level, you should be able to qualify for a credit card. You will also need to be able to make your monthly payments on time. If you meet these requirements, you may qualify for an unsecured credit card.

What is an unsecured credit card?

An unsecured credit card is one that does not require a deposit. Unsecured credit cards are not secured by an asset, such as a car or house. Unsecured credit cards are easier to qualify for than secured credit cards, because the unsecured card issuer does not have to worry about the asset if you cannot make your payments.

What is the difference between secured and unsecured credit cards?

Secured credit cards are backed by a deposit or tied to assets as collateral, such as a savings account. Unsecured credit cards do not require a deposit or collateral.

What is a secured credit card?

A secured credit card is backed by a deposit, such as a savings account. The deposit acts as collateral for the credit card. If you do not make your monthly payments, the card issuer can sell your deposit.

What is the difference between balance transfer and purchase credit cards?

A balance transfer credit card is issued with a 0% intro APR on balance transfers. A balance transfer means to shift one balance to another credit card. For example, if you have a balance on a credit card with a high interest rate, you can transfer the balance to a credit card with a low interest rate. While a balance transfer credit card is ideal for shifting a balance, you should not use it to buy more items. A balance transfer credit card has a high interest rate after the introductory period. If you want to buy something, you should get a purchase credit card. A purchase credit card has a lower interest rate than a balance transfer card.

Which credit card should I get?

Credit is no one-size-fits-all process. If you are applying for a credit card after resolving debts through bankruptcy, consider a low risk credit card with the least amount of fees and finance charges. More importantly than the type of credit you obtain, is how you use it. Credit after bankruptcy should be part of your financial recovery plan, not a source of income for purchases. Make only intentional, planned purchases that you can immediately pay off. Repeating that process for a while after bankruptcy can  boost your credit profile.

For more answers about how bankruptcy can help you get out of debt, contact our team of experienced Dallas bankruptcy lawyers today.