Four Bankruptcy-Friendly Credit Cards for Reestablishing Your Credit
No one enters into bankruptcy lightly or with a smile. Bankruptcy carries with it a stigma that in some cases never goes away. It takes ten years for a bankruptcy to fall off your credit report. It’s not completely gone though. You are required to answer honestly on all financial documents that inquire as to any past bankruptcies on your part.
Bankruptcy follows you for a long time. It affects your ability to get a mortgage, car loans and credit cards. Not all lenders view bankruptcy as a factor for the denial of credit. There are many lenders who are bankruptcy-friendly who will issue credit cards to consumers with a bankruptcy provided certain other criteria are met.
- Capital One issues credit cards to consumers with a bankruptcy as soon as three months post discharge. You need to have no recent delinquent accounts or late payments. Capital One uses their own criteria to judge applications for credit. You may have difficulty getting credit from Capital One if you included them on your bankruptcy.
- Barclays issues the Barclaycard Financing Visa through their website and the Apple.com website. This credit card is used for financing Apple products but is also accepted everywhere Visa is accepted. You need to have at least 6 months to a year post discharge with two new accounts and no delinquencies or late payments.
- Orchard Bank, a division of HSBC, offers secured and unsecured credit cards to lenders with a bankruptcy on their credit report. One benefit to using an HSBC product is their pre-qualification tool. This tool checks your credit report using a “soft” inquiry to determine which products you qualify for. This initial inquiry does not affect your credit score. Once you pick a product, they do inquire with a “hard” inquiry which affects your credit report and score.
- Best Buy Reward Zone MasterCard, a division of HSBC, offers a MasterCard credit card to lenders who meet their criteria. As with most subprime offerings, you need no knew delinquencies or late payments on existing credit to qualify.
Most subprime credit card offerings do not come with high credit limits. You may be stuck with between $300-$1,000 limits until you develop a good payment and usage history with the company. They may issue periodic credit line increases to the customers who use their products responsibly and pay on time.
There is life after bankruptcy in regards to your credit report. As the time between your bankruptcy discharge increases, you may qualify for other lenders such as Chase and Citibank. It all depends on your new credit history since the bankruptcy, the amount of time that has passed and whether you included these creditors in your bankruptcy.