Many people are concerned that they won’t be approved for a credit card after being discharged from bankruptcy. The truth is, you can most definitely get a credit card at this time. Here are three ways to get a credit card after being discharged (and some during your bankruptcy).
Secured Credit Card
A secured credit card works just like a regular credit card, but you can only spend up to the amount of your security deposit. Therefore, if you give the credit card company a $500 deposit, your credit card with subsequently have a $500 limit. This can only be done once you’ve been discharged from your bankruptcy.
Supplementary Card
This works by having a family member or friend apply for a new credit card, and include you as a supplementary cardholder. The card will belong to the person who applies for it, and they are fully responsible and liable for it, so to protect themselves they should only apply for a card with a low limit. This is different than a joint credit card in which the credit history of both cardholders will be taken into consideration. This is an option during bankruptcy as well as after you’ve discharged from your bankruptcy.
Prepaid Card
This works the same way as a prepaid cellphone. Once the card is loaded with money, you can spend the amount that you have loaded on the card. Once the money is spent, you have to reload it to use it again. This is an expensive option as there is usually a large fee to load the card. Therefore this option should be a last resort. This is an option during bankruptcy as well as after you’ve discharged from your bankruptcy.
Final words of wisdom: If you choose to get a new credit card after bankruptcy, please be careful as you do not want to get back into financial difficulty.
