Back to articlesCredit Cards After Bankruptcy
After filing bankruptcy, you need to be proactive about rebuilding your credit.
A credit card can be a useful tool for rebuilding credit, but some people with a history of bankruptcy have a hard time getting approved – even if they can put a security deposit down on a secured credit card.
Does this mean you’ll never enjoy the convenience of a credit card again? Not necessarily.
In this guide, you’ll learn how to get credit cards after bankruptcy and other options you might consider for rebuilding your financial stability.
Key points
- Rebuilding credit after bankruptcy is possible, and you can typically start applying for credit cards once your bankruptcy is discharged, though offers may come with high interest rates worth reviewing carefully.
- Checking your credit report for accuracy and disputing any remaining balances on discharged debts is an important early step, since incorrect information can appear even years later.
- Using a credit card responsibly after bankruptcy, such as paying your balance in full, keeping your utilization low, and making on-time payments, can help you rebuild your credit history over time.
Can you get a credit card after bankruptcy?
Is it possible to get approved for a credit card after a bankruptcy filing? Absolutely, according to Marshall Slayton, Managing Attorney and Owner of Slayton Law, PLC of Charlottesville, VA.
“Contrary to popular belief, after bankruptcy, many of my clients are inundated with credit card offers,” Slayton says.
Technically, you can start applying for credit cards as soon as your bankruptcy is discharged.
That usually takes around three months from the filing date for Chapter 7 bankruptcies. Chapter 13 bankruptcies take longer because they involve repayment plans that can take anywhere from three to five years to complete.
Still, just because you can get approved for bankruptcy-friendly credit cards quickly doesn’t mean you should accept any credit offer you receive from a card issuer.
“The vast majority of the offers are terrible deals with predatory interest rates,” Slayton says. “I counsel my clients to throw them in the trash.”
If you’re not getting pre-approved offers or getting turned down from a credit card company after bankruptcy, check your credit report.
Don Petersen, a consumer lawyer with the Law Office of Donald E. Petersen in Orlando, FL, says your ability to get credit after bankruptcy depends on a lot of factors, including:
1 - Your credit score before the bankruptcy.
“The higher your credit score was before you filed bankruptcy, the higher your credit score will be after bankruptcy – although still lower than it was before you filed,” Petersen says. It is very likely that a credit card company will check your credit history before approving you.
2 - Whether you filed a Chapter 7 or Chapter 13 bankruptcy.
Petersen says:
“If you received a discharge under a Chapter 13 repayment plan, you’re typically able to reestablish credit very soon after receiving your discharge.”
3 - Whether you reaffirmed secured debt.
“If you reaffirmed secured debts such as a car loan or mortgage, you can restore your credit much quicker than someone who did not reaffirm such debts,” Petersen says.
While a bankruptcy case will remain on your credit report for seven to 10 years, the discharged debts are supposed to be removed from your credit report. But that doesn’t always happen.
“Many creditors sell discharged debts and continue to leave balances, including charge off amounts and past due balances, on a consumer’s credit report,” Petersen says.
Review your credit report to be safe
Around 60 to 90 days after receiving your Order of Bankruptcy Discharge, confirm you are no longer responsible for paying back the debts that were discharged in your bankruptcy case by ordering a copy of your credit report from annualcreditreport.com. Review the reports to ensure that the balance on all discharged debts is zero.
If any of your creditors are still showing a balance, you’ll need to dispute the report with the credit reporting agency: Experian, Equifax, or TransUnion. The FTC has a sample letter for disputing errors on your credit report that can help.
Separately, you can also dispute the information with the company that originally reported it to the credit reporting company, known as a furnisher, such as a bank, landlord, or credit card company. Furnishers generally must investigate and respond to a dispute within 30 days of receiving it.
If the furnisher's investigation shows the information was wrong or can't be verified, it must correct or remove the information and notify the credit reporting companies, which will then update your report. If the furnisher determines the information is accurate, you can ask the credit reporting company to add a statement to your file explaining your side of the dispute.
Even if you checked your credit report a couple of months after your bankruptcy was discharged, Petersen recommends continuing to monitor it. Incorrect information can reappear on a credit report, sometimes even years after the bankruptcy court discharged the debt. [1]
Which credit cards can you get after bankruptcy?
After you’ve ensured your credit report is accurate, it may be a little easier to get approved for a credit card. Still, you likely won’t be approved for an unsecured credit card with low rates, no annual fee, and generous rewards.
Slayton recommends looking for a secured credit card with a low interest rate and low or no annual fee. Learn about how to use a secured card to build credit.
The interest rate on a secured credit card is typically lower than the rate charged on subprime cards that are designed for people with bad credit. This is because you have to give the credit card issuer cash to hold as collateral in exchange for the line of credit.
“The key,” Slayton says, “is to find a secured card that also reports to the three major credit reporting agencies. This is important so that you can demonstrate to other potential creditors that you’re making regular and timely monthly payments, which will, in turn, improve your credit score and allow you to get more credit with more favorable terms in the future.”
For example, the Self credit builder card can use the savings you’ve built up with a Credit Builder Account as a security deposit and reports to the credit reporting agencies monthly. There’s no hard pull on your credit either.
As long as you monitor your spending activity and make in-full timely payments, it can be an excellent tool for building credit after bankruptcy.
Using credit cards post-bankruptcy
Bankruptcy relief is designed to give you a fresh start with your finances. So you want to make sure you take advantage of this opportunity by using credit cards responsibly going forward.
Here are three ways to use your credit card responsibly post-bankruptcy:
1 - Avoid credit card debt
Credit cards let you borrow money, so using one without a plan to pay it back can create debt. To avoid going into debt, use your credit card for a few small purchases each month and pay off the full balance by the due date.
Many credit cards offer a grace period, meaning you can avoid paying interest on new purchases if you pay your balance in full by the due date each month. Credit card companies aren't required to offer a grace period, so check your cardholder agreement to confirm whether yours has one. [2]
Making on-time payments can also show a credit card company that you manage credit responsibly. According to the Consumer Financial Protection Bureau, repayment history is generally considered the number one factor in building a strong credit score. [3]
Avoid spending beyond your available credit or too close to your credit limit, keeping your credit card balances low relative to your total limit is another factor considered when building credit. Check your account regularly so you can stay on top of your spending and avoid missing a payment.
By paying off your balance in full each month rather than carrying it forward, you'll avoid interest on your purchases while building a positive payment history.
2 - Avoid using the majority of your available credit
Your credit utilization is an important factor in your credit score, and financial experts recommend keeping your credit utilization ratio under 30% at all times.
That means if you have a credit card with a $1,000 limit, you likely won't want to charge more than $300 on that card – even if you pay the balance in full each month.
3 - Make on-time payments
Your payment history is one of the most important factors in your credit score, accounting for 35% of your FICO® score. [4]
Making on-time payments will help you avoid late fees, penalty interest rates, and negative items on your credit report.
When working on credit repair after declaring bankruptcy, it is imperative that you make your monthly payment on time. Enroll in automatic payments or payment alerts to help ensure you don't accidentally miss a payment.
Should you apply for a new credit card after bankruptcy?
Before filling out a credit card application, consider the reasons you got into financial trouble in the first place.
If your bankruptcy was the result of medical debt, divorce, job loss, or other unforeseen event, a credit card can be a useful tool for rebuilding credit after bankruptcy.
However, if you tend to spend outside of your means or your credit limit, you might want to work on budgeting and saving first.
In the meantime, there are other steps you can take to rebuild your credit without getting credit cards.
If you want to reverse your bad credit or start saving, here are four ways to get started. (Read our guide for a more complete list of ways to build your credit.)
1 - Consider a credit builder loan
A credit builder loan is an installment loan that exists to help people build credit.
It works like this:
- You apply for a loan at a bank or credit union or through Self's credit building program.
- Instead of receiving the loan proceeds in cash, it’s deposited into a savings account or CD.
- You start making monthly payments, and the lender reports those payments to one or more of the three major credit rating agencies, helping to build a positive credit history (if you pay on time each month).
- Once you’ve paid the loan in full, you’ll receive the money in the CD or savings account, less any interest and/or administrative fees.
2 - Build credit with your utility bills
Typically, utility companies and cell phone carriers only report your payment history to the credit rating agencies if you default on your payments or get sent to a collection agency.
However, it’s possible to use your on-time bill payments to improve your credit score by reporting utility payments to the credit bureaus.
3 - Build credit with rental payments
Few lenders and property managers report rental payment history to the credit bureaus, so paying your rent on time usually has no impact on your credit. If you’re currently renting, you can ask your landlord or property manager to report your rental payment data.
4 - Become an authorized user
Did you know you can build credit as an authorized user on a credit card? If you have a family member or close friend with a good credit score, consider asking them to add you as an authorized user on their account.
They can do this with or without giving you a physical card, all that matters is they make payments on time, the account is used responsibly, and the card issuer reports authorized user activity to the credit bureaus. If so, the positive activity on the account will be added to your credit reports which could improve your credit score.
But be aware that if the main account holder fails to make on-time payments, this could impact your score negatively as well.
Bankruptcy doesn't last forever
A bankruptcy filing has a major impact on your credit and your ability to borrow in the future, but it doesn't last forever. Getting a credit card after bankruptcy can be tricky. However, if you work towards a better credit rating and are smart about how you use your credit accounts, you'll be able to establish good credit over time.
By understanding what it takes to qualify and using a new credit card wisely going forward, you can demonstrate that you're a responsible borrower. Eventually, the bankruptcy will be less of a factor in your credit history until it's gone from your file forever.
Sources
- Consumer Financial Protection Bureau. "How do I dispute an error on my credit report?" https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/ Accessed September 15, 2026
- Consumer Financial Protection Bureau. "What is a grace period for a credit card?" https://www.consumerfinance.gov/ask-cfpb/what-is-a-grace-period-for-a-credit-card-en-47/ Accessed September 15, 2026
- Consumer Financial Protection Bureau. "How do I get and keep a good credit score?" https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-and-keep-a-good-credit-score-en-318/ Accessed September 15, 2026
- myFICO. "How Payment History Impacts Your Credit Score" https://www.myfico.com/credit-education/credit-scores/payment-history Accessed September 15, 2026
About the author
Janet Berry-Johnson is a Certified Public Accountant and freelance writer with a background in accounting and insurance. Her writing has appeared in Forbes, Freshbooks, The Penny Hoarder, and several other major outlets. See Janet on Linkedin and Twitter.
About the author
Becca has over 10 years of experience as a content writer, working across various industries including finance, digital marketing, education, travel, and technology. Her work has been featured in publications including Forbes, Business Insider, AOL, Yahoo, GOBankingRates, and more.
