Writer: Ashley Fricker
Editor: Lillian Guevara-Castro
Reviewer: Jon McDonald
Key Takeaways
Our editors have deemed the following cards to be the most accessible following a bankruptcy:
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Milestone® Mastercard®: Best unsecured option with no deposit required. See rates & fees
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Secured Self Visa® Credit Card: Best secured option with no credit check.
Some of life’s setbacks can feel impossible to overcome. The good news is that bankruptcy usually isn’t one of them. If you’re buried in debt, it can actually be the first step toward rebuilding your credit for two important reasons:
- Bankruptcy can reduce or wipe out your debt. Since you now have less (or no) debt, you are in an excellent position to repay the next debt you take on.
- Once eligible debts are discharged, your debt burden may be more manageable. Some issuers offer products specifically for consumers rebuilding credit, although these cards may charge high interest rates and fees.
There are several ways to restore your credit rating after bankruptcy. For example, some banks and credit unions offer credit-builder loans designed to help consumers establish a positive payment history over time. The most feasible method is usually to obtain a credit card, secured or unsecured, and use it responsibly.
Credit recovery begins on an individual timeline, but consistent on-time payments, low balances, and accurate credit reports can help scores improve over time. Keep reading for a selection of what we believe to be the best post-bankruptcy credit cards available today, and learn how to use these cards for a fresh start and a fresh credit score.
Best Unsecured Cards After Bankruptcy
An unsecured credit card isn’t backed by a cash deposit. If you’re just coming out of bankruptcy, you may still qualify for one, but expect a high interest rate, steep fees, and a low credit limit. That may not sound ideal, but it can be part of getting your credit back on track.
We’ve evaluated just about every unsecured credit card geared toward those consumers who need to rebuild their credit ratings, and here are some of the best:
- Guaranteed $700 credit limit if approved.
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Don’t Have Perfect Credit? No Problem!
- Join over a million consumers who are working on building their access to credit.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Get the credit you deserve, even with less-than-perfect history.
- No security deposit, and a path to better credit.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 8 minutes | See terms | Yes | 9.0/10 |
- PREMIER Bankcard credit cards are for building credit.
- Start building credit by keeping your balances low and paying all your bills on time each month.
- When you need assistance our award-winning US-based Customer Service agents are there to help.
- Credit Limit Increase Eligible after 12 months of consistent responsible account management.
- We report monthly to the Consumer Reporting Agencies to help you build your credit.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 4 minutes | See Provider Website | Yes | 9.0/10 |
- Get the credit limit you deserve—$700 guaranteed if approved
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
- Get the credit you deserve, even with less-than-perfect history.
- Trusted by more than a million customers with reporting to all three major credit bureaus so you get credit for all of your hard work.
- Zero Fraud Liability – Peace of mind that comes with having a Mastercard.
- Don’t Have Perfect Credit? No Problem!
- No security deposit, just purchasing power.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 3 minutes | 35.9% | Yes | 9.0/10 |
- Up to $1,000 Initial Credit Limit
- See if you Pre-Qualify with No Impact to your Credit Score
- Less than perfect credit? We understand. The Surge Mastercard is ideal for people looking to rebuild their credit.
- Unsecured credit card requires No Security Deposit
- Perfect card for everyday purchases and unexpected expenses
- Monthly reporting to the three major credit bureaus
- Use your card everywhere Mastercard is accepted at millions of locations
- Enjoy peace of mind with Mastercard Zero Liability Protection for unauthorized purchases (subject to Mastercard guidelines)
- Apply with Confidence! There is no impact to your credit score if you’re not approved. See terms.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 5 minutes | 35.90% Fixed | Yes | 8.5/10 |
Your strategy should be to pay off your balance each month to avoid interest charges. Keep your balance low relative to your available credit limit to maintain a healthy credit utilization, and never miss a payment due date.
Best Secured Cards After Bankruptcy
With a secured credit card, you put money into an account that serves as collateral for your balance. In most cases, the deposit matches or exceeds your credit limit, and you generally can’t access that money unless you close the account or move up to an unsecured card.
You might choose a secured card if you can’t qualify for an unsecured one or if its refundable deposit makes it more affordable than a fee-heavy unsecured card. These are our three top picks for a secured card:
- The secured Self Visa® Credit Card* requires no credit check or minimum score.
- Reports to all 3 major credit bureaus to establish and build credit, with free access to your credit score.
- Secure your credit line with a refundable security deposit as low as $100.**
- Deposits are returned upon account closure after settling outstanding balances.
- *The secured Self Visa® Credit Card is issued by Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A., each Member FDIC.
- **Qualification for the secured Self Visa® Credit Card is based on meeting eligibility requirements, including income and expense requirements and establishment of security interest. Criteria subject to change.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 3+ minutes | 27.49% Variable APR | Yes | 9.5/10 |
- Earn up to 10% cash back on everyday purchases
- No credit check required – 89% approval rate with zero credit risk to apply!
- Boost your credit score fast—2 out of 3 opensky® cardholders see an average increase of 47 points after 6 months
- Track your progress with free access to your FICO® score in our mobile app
- Build your credit history with reporting to all three major credit bureaus: Experian, Equifax, and TransUnion
- Seamless payments—add your card to Apple Pay, Google Pay, and Samsung Pay
- Start with just $200—secure your credit line with a refundable deposit
- Fast and easy application—apply in minutes with our mobile-first experience
- Flexible payment options—pick a due date that works for you
- More time to fund—spread your security deposit over 60 days with layaway
- Join 2 million+ cardholders who have used opensky® to build better credit!
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 9 minutes | 23.89% (variable) | Yes | 7.0/10 |
- Choose your own credit line based on how much money you want to put down as a security deposit.
- Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
- After 9 months, we review your account for a credit line increase. No additional deposit required!
- Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
- Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
- Get your FICO® Credit Score for free each month.
- Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with available Auto Pay and account alerts.
- Card issued by Merrick Bank, Member FDIC.
| Application Length | Interest Rate | Reports Monthly | Reputation Score |
|---|---|---|---|
| 10 minutes | 21.95% Variable | Yes | 7.5/10 |
The nice thing about a secured card is that the deposit is refundable — you can’t say the same for the annual fees and other fees charged by unsecured cards.
Restoring Credit After Chapter 7 or Chapter 13 Bankruptcy
Chapter 7 bankruptcy liquidates your debt, but a trustee may sell certain nonexempt property during the process. In a way, Chapter 7 cleans the financial slate, although the black mark remains on your credit report for many years.
Chapter 13 bankruptcy reorganizes your debt, which means you are expected to pay back at least some of it. Filers can generally retain their property while making the payments required under the court-approved plan.
| Feature | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy |
|---|---|---|
| Primary purpose | Discharges many eligible debts through a liquidation process | Reorganizes eligible debts under a court-approved repayment plan |
| Typical timeline | Often completed within several months | Repayment plan generally lasts three to five years |
| Property | Exempt property is generally protected; a trustee may sell nonexempt property | Filers can generally retain property while making required plan payments |
| Debt repayment | Most eligible unsecured debts may be discharged without repayment | Some debts are repaid in full or in part through the plan |
| New credit | Credit may be available after discharge, subject to issuer requirements | Taking on new debt during an active case may require trustee or court approval |
| Credit-report period | May remain for up to 10 years from the filing date | Typically remains for up to 7 years from the filing date |
Here are some tips to help you rebuild your credit after bankruptcy:
- Review your credit reports: You can get free copies of all three reports once a week on AnnualCreditReport.com. Go through each one to find any mistakes, which you can rectify by following the procedures set out by each of the credit bureaus. You can also add comments to explain your side of any issues.
- Open one or two credit accounts: We’ve mentioned credit-building accounts from credit unions and secured/unsecured credit cards. Even if you are allowed to open multiple accounts, go slow. Applying for or opening several accounts within a short period can result in hard inquiries and reduce the average age of your accounts, potentially lowering your credit scores.
- Pay down debt: The sooner you repay your debts, the sooner your credit rating should begin to recover. For new credit cards, pay the balance in full each month whenever possible. Carrying a balance and paying interest does not help your credit scores.
Credit cards can be a primary tool for restoring your credit rating following a bankruptcy. The cards listed in this article offer potential starting points for consumers rebuilding after bankruptcy. Use your cards responsibly, and over time, you can help reestablish your financial reputation.
Frequently Asked Questions About Bankruptcy and Credit Cards
Here are some answers to commonly asked questions:
Can I Get a Credit Card After Bankruptcy?
Yes, it is possible to qualify for a credit card after bankruptcy. Some issuers specifically offer cards to consumers who are rebuilding their credit, although approval is never guaranteed. The issuer may consider your income, existing obligations, recent credit history, and the type and status of your bankruptcy.
Before applying for a post-bankruptcy credit card, here’s a list of things to check and why they matter:
| Check | Why It Matters |
|---|---|
| Bankruptcy status | An active Chapter 13 case may require permission before you take on new debt. |
| Credit reports | Discharged balances should generally be reported as discharged or included in bankruptcy, not past due. |
| Prequalification | Checking potential eligibility with a soft inquiry can help you avoid an unnecessary hard inquiry. |
| Rates and fees | Annual, monthly, and account-opening fees can substantially reduce your available credit. |
| Credit bureau reporting | Reporting to all three major bureaus gives your positive payment history the widest reach. |
Your first offers will likely carry high interest rates, annual fees, and low credit limits. Compare the full cost of each card before applying, and look for one that reports your payment activity to all three major credit bureaus to help you build credit.
How Soon After Bankruptcy Can I Apply for a Credit Card?
There is no universal waiting period after a bankruptcy discharge. You may begin receiving credit offers soon afterward, but that doesn’t mean you need to accept the first one that lands in your mailbox.
Start by reviewing your credit reports to confirm that discharged debts are reported accurately. If you are still making payments under an active Chapter 13 plan, talk to your bankruptcy attorney or trustee before applying because you may need permission to take on new debt.
How Long Does Bankruptcy Stay on My Credit Report?
A Chapter 7 bankruptcy may remain on your credit reports for up to 10 years from the filing date. A Chapter 13 bankruptcy generally remains for up to seven years.
Below, our credit expert John Ulzheimer provides an in-depth response to this question:
Despite the lengthy time, it doesn’t mean your credit scores will remain frozen for the entire reporting period. As John explains, the effect of negative information can diminish over time, particularly when you add a consistent record of on-time payments and low credit card balances.
Is a Secured or Unsecured Card Better After Bankruptcy?
That depends on which cards you can qualify for and how much they cost. A secured card requires a refundable deposit, but it may offer lower fees or a better chance of approval. An unsecured card doesn’t require a deposit, but cards designed for damaged credit can charge substantial annual and account-maintenance fees.
Neither type automatically rebuilds credit faster. The better choice is generally the affordable card that reports to all three credit bureaus and gives you a manageable path to making every payment on time.
Will a Credit Card Help Rebuild My Credit After Bankruptcy?
It can, provided the issuer reports your account activity to the credit bureaus and you manage the card responsibly. Make a small purchase you can afford, pay every bill by its due date, and keep the reported balance low relative to the card’s limit.
A low credit limit doesn’t have to hold back your progress. Credit expert Gerri Detweiler explains how to use a starter card strategically without letting a small limit lead to high credit utilization.
You do not need to carry a balance or pay interest to build credit. Paying the statement balance in full each month can establish a positive payment history while keeping the card from becoming another source of expensive debt.
A Credit Card Can Be Part of Your Fresh Start
Bankruptcy doesn’t permanently close the door to credit. It gives you an opportunity to reset your finances, establish better habits, and gradually build a new credit history.
You don’t need several cards or a large credit limit to get started. One affordable account, a few manageable purchases, and a perfect payment record can do the job. Progress may not happen overnight, but responsible use can help put time — and your credit reports — back on your side.
