In Chapter 7 bankruptcy, all of your debts are discharged at this point, and any assets you own that are not exempt will be sold to help pay off your debts. This will erase all you owe to your creditors and everything you own that is worth anything. Chapter 7 enables a fresh start because you won't be held responsible for any debts when the bankruptcy is dismissed or finished. Your credit report will suffer significant damage.
While your bankruptcy case is pending, you are not permitted to apply for any new credit lines, including credit cards. When you can apply for a credit card will depend on how long it takes to settle and end your bankruptcy proceedings. After the initial filing, it typically takes four to six months for a Chapter 7 bankruptcy to be finished and your debts eliminated, you can then apply for credit cards after filing chapter 7. Let’s explore the best secured credit card after chapter 7 bankruptcy and tips to use secured credit cards after filing chapter 7.
Best Secured Credit Card After Chapter 7 Bankruptcy
Your ability to obtain a credit card is one of the numerous negative consequences of bankruptcy. Although it's not impossible, getting a credit card after bankruptcy may be challenging because of the long-term harm it brings to your credit score. For those who have filed for bankruptcy, this might be upsetting because one of the ways to rehabilitate your credit is by using credit cards properly.
Fortunately, those who are getting over bankruptcy still have options, such as signing up as an authorized user on someone else's account or getting a secured credit card in your own name. We have a list of the best secured credit cards to rebuild credit after chapter 7 bankruptcy for you:
- Zolve Azpire Credit Builder Card
- Discover it® Secured Credit Card
- Capital One Platinum Secured Credit Card
- OpenSky® Secured Visa® Credit Card
Zolve Credit Builder Card is the best among all the best credit cards to apply for after chapter 7 bankruptcy. You'll have a higher chance of starting your credit rebuilding phase with the Zolve Secured Credit Card if the bankruptcy process is complete. There is no credit check, no minimum deposit, and no annual charge. You can easily apply for the Zolve Azpire Credit Builder Card and get lots of rewards as you start transacting. So start your credit rebuilding journey with this best credit card after chapter 7.
Required Minimum Deposit: None
- Annual Interest Rate: Zero
- Cashback: Up to 15%
- Subscription Fee: Zero
- SSN Required: None
- Credit Check: Not required
Discover it® Secured Credit Card
One of the best credit card after chapter 7 is the Discover it® Secured Credit Card. In addition to giving you a free copy of your FICO Credit Score each month so you can monitor your progress in repairing your credit, this program will double your cash back at the conclusion of your first year.
Like with the majority of secured cards after chapter 7, a security deposit is required at account opening. After seven months, Discover may return your deposit and upgrade you to an unsecured account if you continue making on-time monthly payments on your debt. Discover will monitor your account.
Required Minimum Deposit: Starts at $200 (refundable)
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is a good credit card after chapter 7 bankruptcy. It requires you to provide a refundable minimum security deposit of $49, $99, or $200 in order to open an account. However, the Capital One Platinum Secured Credit Card starts your credit limit at $200, even if you've only decided to deposit $49, in contrast to most secured cards, which have a credit limit equal to the amount you deposited.
Required Minimum Deposit: $49, $99 or $200 (refundable)
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card does have an annual charge of $35, unlike the other cards on this list. However, there is no credit check required to apply, and when you pay the refundable deposit, you'll have a $200 credit line right away. Even while this card lacks incentives and is more expensive to own than the others on this list, it might still be a fantastic alternative for repairing your credit.
Required Minimum Deposit: Starts at $200 (refundable)
So, after knowing all details of some of the best secured credit cards, we can definitely say that Zolve Azpire Secure Credit Card is the best secured card after chapter 7 bankruptcy as it's easy to get and use with no additional charges and up to 15% cashback. Additionally, Zolve reports to the credit bureaus and builds your credit score for a better financial future.
Quick Tips to Effectively Use Credit Cards After Chapter 7 Bankruptcy
The simplest way to include good information in your credit reports each month is to pay your bills on time. And doing so is essential to dispelling the inaccurate information about bankruptcy. And, follow these suggestions while using the best credit cards to rebuild credit after chapter 7 bankruptcy.
Don’t spend more: The cost of accruing credit card debt is high, and it puts extra strain on your budget. Additionally, your current objective should be to develop sustainable, responsible payment and spending habits. Therefore, always settle your account in full or refrain from using your card at all.
Create Your Emergency fund: If you have a significant unforeseen expense or interruption in your income, saving money for a rainy day will prevent you from ending yourself back where you started. So, set aside some money each month for this.
Avoid taking cash advances: It is quite expensive to use your credit card to get cash from an ATM because there is a fee and a very high interest rate that begins to accrue immediately away. Therefore, financial advances should only be used in dire circumstances. This is especially true if you have a secured card because paying finance fees to access money that you deposited actually makes no sense.
Tips to Choose Best Credit Cards After Chapter 7 Bankruptcy
Here are some tips to choose the best credit card to apply for after chapter 7 bankruptcy:
- Make sure the card issuer reports your account details to each of the three major credit bureaus—Experian, TransUnion, and Equifax—which will give you a greater chance to raise all of your credit scores.
- Ideally, after a predetermined amount of time, your secured credit card will "convert" to an unsecured one. If you have paid your debt in full before it converts, you will receive your deposit back. You can continue to use the card to aid in establishing your credit history.
- You can receive alerts for significant changes to your credit report by registering for free, round-the-clock credit monitoring. This can let you respond swiftly to mistakes and fraud warning indicators. You can tell whether you're prepared to apply for a credit card upgrade by keeping an eye on your credit score.
You should check your credit reports for inaccuracies and keep an eye on your credit score going forward in addition to following tips mentioned above. Choose the best credit cards to rebuild credit after chapter 7, Zolve Credit Builder Card can help you to start the process of rebuilding your credit. You certainly don't want the issues that resulted in bankruptcy to come up again.
Frequently Asked Questions
After Chapter 7, am I eligible for an unsecured credit card?
After bankruptcy, it's typically more challenging to get authorized for unsecured credit cards, but you might be able to receive one as soon as the bankruptcy is dismissed. However, it's crucial to remember that the unsecured credit cards you might obtain following bankruptcy have high annual fees and restricted credit limits. So, it's easy and best to apply for secured credit card bankruptcy chapter 7.
After filing for bankruptcy, is credit still available to you?
Yes, you can still obtain credit after filing for bankruptcy, but you will need to hold off until your debts are dismissed or until the court grants you permission. Even if you might attempt to obtain a credit card with no credit check before your debt is dismissed, waiting will provide you more possibilities. A secured credit card is the easiest credit card to get after chapter 7.
What are the best credit cards after filing chapter 7?
Zolve is one of the best secured credit cards after chapter 7 bankruptcy as it comes with zero annual interest rate, no minimum deposits required and lots of offers and is easy to get.
What is the easiest credit card to get after chapter 7?
The most straightforward credit card to obtain after the bankruptcy is a secured one, by far. These cards are created especially for people who need to repair their credit. You should go for a Zolve credit builder card if you want to build your credit. It is among the simpler secured cards to obtain for folks who have recently gone bankrupt.
How soon after filing for bankruptcy can I obtain a secured credit card?
When your bankruptcy is discharged, if you filed for Chapter 7 bankruptcy, you ought to be eligible to obtain a secured credit card after chapter 7 after 4-6 months.