Immediately after filing bankruptcy, individuals may receive offers for credit cards with high interest rates and very low credit limits, and they can get secured credit cards for which they make a deposit that acts as collateral and as a credit limit, says LowCards.com. Individuals should be careful about hidden fees that often accompany the former type. However, both of these types of cards can help begin to rebuild credit so that individuals can apply for other cards.Continue Reading
After some rebuilding, individuals can apply for standard credit cards for those with bad credit ratings, which also have low credit limits but somewhat better interest rates than the cards available immediately after bankruptcy, explains LowCards.com. Previous creditors that were affected by the bankruptcy are not likely to approve credit cards at this point, but other issuers may approve credit cards.
After a few years of stabilizing credit history, however, users are more likely to be accepted by most standard credit cards, according to LowCards.com. At this point, the recent credit history is given more weight than the bankruptcy filing. After the bankruptcy has been cleared from the credit history, only the recent credit history matters when applying for credit cards. Before getting to this point, applicants should be aware that declaring bankruptcy is seen in a positive light by some banks and that these banks may view them as slightly better potential borrowers than before filing,Learn more about Credit & Lending