Most people think that after they declare bankruptcy, the days of getting loans and using credit cards are over. But this is not true. You certainly can get credit cards after bankruptcy, though with certain restrictions.

Now, don’t be surprised if you find yourself getting rejected when you apply for credit cards after bankruptcy. This is because your credit score is in tatters and all credit card companies will look at your credit score before approving you for a credit card.

Now, you can apply for an unsecured credit card either at a bank or online. I highly suggest you look online for bad credit cards – a credit card for people with bad credit.  There are online credit card companies that will gladly offer people who have declared bankruptcy one of these cards. Filling out an application online is painless and you can get a credit card in as fast a week – if you are accepted. If you apply for a normal credit card, you will probably be rejected. But you stand a good chance at getting a special credit card for people with bad credit.

Keep in mind that you will pay higher interest on these cards and maybe suffer other penalties as well.

Now, if you want to get a credit card after bankruptcy there are a few things you should understand. When trying to apply for a credit card, you may want to wait until 2 years after bankruptcy discharge. This is because recent bankruptcies scare lenders and cast you in a very unfavorable light. If you have already declared bankruptcy, then might you not declare it again?

The longer you wait before applying the better your chances of getting a credit card or a bank loan are. In general, two years after bankruptcy discharge is sufficient time, if you have been working on fixing your credit score.

Now, you can still apply for a credit card before the two year period is up, and you may well be able to get acceptance. However, if you get a credit card before two years after bankruptcy discharge, do not any sort of good deal on your credit card – you will pay sky high interest rates.

Decide What Type of Credit Card You Want

One other issue you need to consider is that you won’t be getting the same credit card deals as people with good credit or even fair credit. This means that people with bankruptcies or defaults on their credit record will be stuck with a “worse” deal than people with fair credit.

This essentially means you’ll only get very high interest credit cards and be subject to additional stipulations. This could mean you will have to pay additional penalties if you don’t pay off your credit card each month (such as double interest) and be given lower credit card limits.

Now, rest assured that this is a temporary restriction. You will have to live with these penalties and subpar cards for a year or two – just until you repair your credit history. Once your credit improves, the credit card companies will begin to lift your limit and reduce your interest rates.

How to Increase Your Chances of Getting A Credit Card

Now, there are some things you can do to increase the chances for getting approved for a credit card after bankruptcy. Mainly, you need to make sure that you avoid any sort of late or missed payments on your bills (such as a cell phone bill, utility bill etc). As person who has declared bankruptcy, you need to show a stellar credit record, since you will be judged more harshly.

You want to establish a “clean credit history” before even considering applying for a credit card. This means you need 6 months with no missed or late payments on your credit report. This is really essential for getting credit cards after bankruptcy

Now, if you absolutely cannot satisfy any of these requirements, you still can get a secured credit card. The downside is that you will have to cough up the money for a deposit on the card and this deposit will be the actual credit limit of the card. You use the card as regular credit card, making sure to pay off the balance each month. After a few months of showing good credit behavior, you will likely be upgraded to a better credit card or the “secured” status will be removed and your deposit returned. They key is that a secured credit card will give you use of a credit card and the ability to start cleaning up your credit score.

If All Else Fails, Get a Secured Credit Card

If you can’t meet the above requirement, you can always resort to a secured credit card. You’ll need to raise some money for a deposit prior to using this card and that deposit will be your credit limit. Yet, with some use of this card, you’ll build up your credit score again and will be able to obtain a better credit card product in a matter of months.

Be sure to look at these other bankruptcy guides:

• Getting a Mortgage After Bankruptcy
• Buying a Home After Bankruptcy
• Personal Loans After Bankruptcy
• How to Declare Yourself Bankrupt
• How to Stop Foreclosure On Your Home

It can be very tough trying to get credit cards after bankruptcy, but rest assured that it can be done, and in fact must be done. This is because a credit card is one of the best ways to build or rebuild your credit, so you are going to need one, if you ever have hopes of getting a loan from a lender in the future.