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Best Credit Cards to Get After Bankruptcy

7 min read
Brendan Harkness By Brendan Harkness Updated Aug 12, 2020

Declaring bankruptcy is a major decision, and it’ll have major negative effects on your credit. But with a little dedication, you can build your credit scores back up.

Responsible use of credit is the best way to recover after a bankruptcy — you’ll need to re-prove that you can be a responsible borrower. In large part, that means building up a solid record of on-time payments.

Credit cards can be valuable tools to help repair your credit, but getting a credit card after bankruptcy can be tough. That’s why you’ll likely need to go with a secured credit card, which requires a security deposit to qualify.

Many cards designed for bad credit come with extra fees, like setup/account opening fees, monthly fees, and fees for simple actions like credit limit increases or getting paper statements. But our best credit cards below are light on fees, leaving you with more cash to help pay off debts.

If you won’t use your new credit card responsibly, it would be better not to get it at all. If the problems that led to your bankruptcy are unresolved — like spending above your means, or a lack of a stable job or emergency funds — opening a new line of credit may just get you into further trouble.

Best For Card
Cash Back Rewards Discover it® Secured (Review)
Low Security Deposit Capital One® Secured Mastercard® (Review)
No Bank Account Citi® Secured Mastercard® (Review)
Easy Approval OpenSky® Secured Visa® Credit Card (Review)

Discover it® Secured: Best for Cash Back Rewards

Discover it® Secured

Our rating
Min. credit levelBad
Details
Annual Fee$0
Regular APRSee Terms

The information related to Discover it® Secured has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

The Discover it® Secured (Review) is the Cadillac of secured cards. While many secured cards seem like punishments for having poor credit, Discover’s secured card looks more like a typical reward credit card, complete with cash back and an intro bonus.

You can use this card to improve your credit scores while earning some rewards in the process, and you’ll have access to a couple handy tools to keep tabs on your credit. The Credit Scorecard will show you one of your FICO Score 8 credit scores whenever you’d like, based on your TransUnion credit report, along with specific tips to build up your credit. And the new account and inquiry alerts will let you know if anything new pops up on your Experian credit report, without having to check it manually.

Spending Rewards
  • 2% cash back on up to $1,000 spent per quarter at:
    • Gas stations
    • Restaurants
  • 1% cash back on all other purchases
Introductory Bonus Offer
  • Cashback Match: Double all cash back earned in the first year; awarded at the end of the first year

Key Features

  • Free credit score: Check your FICO Score 8 for free, based on your TransUnion credit report.
  • Social Security number alerts: Get notified if your SSN is found on any thousands of dark web sites.
  • New account and inquiry alerts: Set up notifications to be alerted if any new accounts or credit inquiries show up on your Experian credit report.
  • No foreign transaction fee
  • Balance Transfer APR: See Terms for See Terms, then See Terms
  • Purchase APR: See Terms
  • Annual fee: $0
  • Security deposit: $200 to $2,500

Capital One® Secured Mastercard®: Best for Low Security Deposit

Capital One® Secured Mastercard®

Our rating
Min. credit levelBad
Details
Annual Fee$0
Regular APR26.99% (Variable)

The information related to Capital One® Secured Mastercard® has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

The Capital One® Secured Mastercard® (Review) has a lot to recommend it as a credit-building tool. While most secured cards just give you a credit limit equal to your security deposit, this card gives you two ways to increase your credit limit beyond your deposit.

If you’re approved you’ll be asked to provide a deposit based on your creditworthiness: either $49, $99, or $200. But, no matter what you’re asked to deposit, you’ll receive a starting credit limit of $200. Those requirements are quite low when it comes to security deposits, and you may get a bit extra right off the bat (you can deposit up to $1,000 for a $1,000 credit line).

Then, once you get your card, Capital One may automatically consider you for a higher credit line after six months. Use the card responsibly, and manage your other debts responsibly, for the best chance at a higher limit.

So you may wind up with a credit line quite a bit higher than your deposit, which is not only convenient, but can help keep your credit utilization low — and lower utilization is better for credit scores.

Key Features

  • Access a higher credit line: You may be automatically considered for a higher credit line after six months.
  • Free credit score: Use CreditWise to monitor your VantageScore 3.0 credit score, based on your TransUnion credit report.
  • Shopping and travel protections: Extended Warranty, Auto Rental Collision Damage Waivers, Travel Accident Insurance
  • Purchase and Balance Transfer APR: 26.99% (Variable)
  • No foreign transaction fee
  • Annual fee: $0
  • Security deposit: $49 to $1,000

Citi® Secured Mastercard®: Best for No Bank Account

Citi® Secured Mastercard®

Our rating
Min. credit levelBad
Details
Annual Fee$0
Regular APR22.49% (Variable)
Apply Now

securely on the issuer's website

  • The Citi® Secured Mastercard® is a no annual fee credit card that helps you build your credit when used responsibly.
  • Unlike a debit card, it helps build your credit history with monthly reporting to all 3 major credit bureaus. Once available, you will also have free access to your FICO score online.
  • Use your card anywhere Mastercard® is accepted — worldwide.
  • A security deposit is required. Once approved, your credit limit will be equal to your security deposit (minimum of $200).
  • Get help staying on track with Auto Pay and account alerts.
  • With Flexible Payment Due Dates, you can choose any available due date in the beginning, middle or end of the month.
  • Manage your account 24/7 online, by phone, or in our mobile app.
  • The standard variable APR for Citi Flex Plan is 22.49%. Citi Flex Plan offers are made available at Citi’s discretion.

The information related to Citi® Secured Mastercard® has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

The Citi® Secured Mastercard® (Review) is a simple secured card that won’t bog you down with fees.

It’s fairly unassuming, but it stands out in one important respect: You don’t necessarily need a bank account to be approved. This could be the card you’re looking for if you’re one of America’s many unbanked consumers (over 14 million American adults didn’t have a bank account in 2017). You’ll need to visit a physical Citibank location to apply without a bank account.

Other than that, it’s a lot like your standard secured card from Central Casting. There are no rewards or fancy benefits, but you can use it to improve your credit and eventually qualify for better cards. And to that end, if you manage this card and your credit responsibly, Citi may consider upgrading you to an unsecured credit card, such as the Citi® Diamond Preferred® Card (Review).

Key Features

  • No bank account needed: Apply at a Citibank location if you don’t have a checking or savings account.
  • Free credit score: Access your FICO Bankcard Score 8, based on your Equifax credit report, to monitor your credit situation.
  • Purchase and Balance Transfer APR: 22.49% (Variable)
  • Annual fee: $0
  • Security deposit: $200 to $2,500

OpenSky® Secured Visa® Credit Card: Best for Easy Approval

OpenSky® Secured Visa® Credit Card

Our rating
Min. credit levelLimited Credit History
Details
Annual Fee$35
Regular APR17.39% Variable
Apply Now

securely on the issuer's website

  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card.

The OpenSky® Secured Visa® Credit Card (Review), unlike the other cards here, stands apart for not requiring a credit check to be approved. That means you’ll likely have a higher chance of qualifying, because your poor credit scores won’t hold you back.

You also won’t need a bank account to provide the security deposit. Instead, you can pay by debit card, money order, certified check, or Western Union.

But that easy accessibility comes with some caveats. This card has an annual fee, no credit monitoring features, no rewards or benefits, and some reports of poor customer service and slow processing. But, if you’re working with bad credit and haven’t been able to qualify for the secured cards mentioned above, OpenSky may be worth a shot.

Key Features

  • No bank account needed: If necessary, pay your security deposit by debit card, money order, certified check, or Western Union.
  • Purchase APR: 17.39% Variable
  • Annual fee: $35
  • Security deposit: $200 to $3,000
Insider tip

If you’re struggling with poor credit you may have been offered credit cards from Credit One bank. We typically advise avoiding cards from Credit One, for a variety of reasons that include complaints about customer service and slow payment processing. You may also get offers for some of the worst credit cards on the market — even though your credit is poor, you can probably do better.

There’s at least one unsecured card that could be worth considering: the Fingerhut Advantage Credit Account (Review). This card can only be used with Fingerhut and comes with a lot of strings, but it can be used to help repair your credit.

Can a Credit Card Help Build Credit After Bankruptcy?

It may seem counterintuitive to get a credit card after bankruptcy. Isn’t this just creating a new opportunity to get into even more debt? But the truth is, a new credit card could be a great way to rebuild your credit — if you’ll use it responsibly.

A Chapter 7 bankruptcy can remain on your credit reports for up to 10 years; a Chapter 13 bankruptcy can remain for up to seven years. Each type of bankruptcy will hurt your credit all on its own, but if things got that bad, it’s likely that you wound up with some late payments on your credit reports as well.

After bankruptcy, one of your goals should be to drown out those late payments with a solid record of on-time payments. The more on-time payments and accounts you have compared to late payments, the better.

Here’s some good news: Negative items on your credit reports do the most damage when they’re fresh. As time goes by their impact will diminish. So manage your credit well, and in time you’ll see the fruits of your labor manifest in higher credit scores. But this process takes time, and you’ll have to be patient.

Some more good news: Lenders, like credit card issuers, might be more eager to provide you with credit after a bankruptcy than you’d expect. Consider that, after a bankruptcy, you’ll have discharged a lot of debt, freeing up cash for payments to a new card. Issuers will feel free to give you high interest rates. And if you filed for Chapter 7 bankruptcy, you won’t be able to do that again for eight years. If it looks like you’ll be able to make your payments, lenders may be willing to extend new credit to you.

How Do You Build Credit After Bankruptcy?

Here are some tips to help you stay the course and prevent new debt from building up:

  • Always pay your bills on time and in full: This is crucial. Payment history is the most important factor in your credit scores, accounting for 35% of a FICO score, and late payments can cause severe damage. We recommend always paying your statement balance in full.
  • Don’t max out your credit card: Try to avoid ending your statement period with a high balance relative to your credit limit. You can make payments throughout the month to reduce your balance. The lower your statement balance, the lower your credit utilization will be, and in general this is good for your credit. Credit utilization is included in the second-most important component of a FICO score (Amounts Owed), so don’t take it lightly.
  • Monitor your credit accounts and credit reports: Check in on your credit regularly using free credit monitoring tools. Be aware of your balances, and the contents of your credit reports. Don’t let anything slip. If anything is inaccurate, dispute it.
  • Don’t apply for too much credit in too short a time: We recommend getting a credit card after bankruptcy, but don’t go wild with new credit applications. Each hard credit inquiry can hurt your scores, albeit in a minor way. It’s probably best to stick with just one credit card for a while after bankruptcy. Check to see if you’re pre-qualified before applying to reduce the chances of denial.
  • Stick to a budget: Only spend within your means. Treat your credit card more like a debit card — only spend what you can afford to pay off in full by the due date. This is especially important if overspending contributed to your bankruptcy (but you probably already know that).
Insider tip

Besides getting a new credit card of your own, you can rebuild your credit after bankruptcy by:

  • Becoming an authorized user on someone else’s credit card: When you become an authorized user, the credit account history will show up on your credit reports as if it were your own card. Just be sure that the card has always been used responsibly, and will be in the future — positive activity will help, and negative activity will hurt.
  • Applying for a credit builder loan: A credit builder loan is like a loan in reverse. You make all the monthly payments first, and then you get the loan funds. This gives you a chance to show you can manage a repayment plan over a long period of time, by building up a positive record of on-time payments.

Frequently Asked Questions

How soon after bankruptcy can I get a credit card?

You can apply for a new card whenever you want, but you’ll probably have a better shot at approval after the bankruptcy is discharged. That could mean waiting a while:

  • Chapter 7 bankruptcy: Typically discharged within three to five months; can remain on credit reports for up to 10 years
  • Chapter 13 bankruptcy: Typically discharged within three to five years; can remain on credit reports for up to seven years

With Chapter 7 bankruptcy, after your debts are discharged the accounts should read zero on your credit reports — but it could take a while for all of your credit reports to be updated. Check your credit reports at all three major credit bureaus (Equifax, Experian, and TransUnion) around 90 days after the bankruptcy is discharged. If the relevant accounts read zero, this can be helpful for your credit, and that’s when it makes sense to apply for a new credit card.

During a Chapter 13 bankruptcy, in which payments are required over several years, you may need to get the trustee’s approval to get a new credit card. Or you may need to wait until the process is complete and the debts are discharged.

What’s the easiest credit card to get after bankruptcy?

The easiest card to get after bankruptcy is probably a card like the OpenSky® Secured Visa® Credit Card (Review). It doesn’t require a credit check, making it relatively easy to qualify for even with bad credit.

But before going with the OpenSky card, which has a few drawbacks, we recommend checking out our top secured credit card picks:

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At a glance

Bankruptcy can be stressful. Not only is it costly, it also has long-lasting negative effects on your credit. But don’t lose hope — you can rebuild your credit and improve your credit scores by getting a new credit card and paying it off responsibly each month.

Credit Card Insider receives compensation from advertisers whose products may be mentioned on this page. Advertiser relationships do not affect card evaluations. Advertising partners do not edit or endorse our editorial content. Content is accurate to the best of our knowledge when it's published. Learn more in our Editorial Guidelines.

The information related to Discover it® Secured, Capital One® Secured Mastercard®, and Citi® Secured Mastercard® have been collected by Credit Card Insider and have not been reviewed or provided by the issuer or provider of these products.

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