How to Apply for Secured Credit Cards after Chapter 7 Bankruptcy
Credit Education Bankruptcy Azpire

How to Apply for Secured Credit Cards after Chapter 7 Bankruptcy

Moumita Basu

Table of Contents

Most customers who are deeply in debt would choose a chapter 7 bankruptcy to start over by wiping out all of their bills. The means test, which evaluates your income to see if it's over the median for your state and how much disposable income you have, must be passed in order to be eligible for a chapter 7 bankruptcy, though.

Regardless of which type or specific circumstances, filing for bankruptcy will have a lasting impact on your credit score. Chapter 7 bankruptcy will stay on your credit report for 10 years.

By applying for a credit card made for those with bad or poor credit, anyone can restore their credit after filing for chapter 7 bankruptcy. Your credit score will increase once again if you manage your expenditure and make your payments on time. Let’s learn more about getting a credit card after chapter 7 bankruptcy.

How Does Chapter 7 Bankruptcy Affect Your Credit?

The most serious negative event that can appear on a credit report is a bankruptcy filing, which can severely and permanently harm your credit ratings. Your credit report will reflect a Chapter 7 bankruptcy, which discharges all of your debts, for up to 10 years.

Your credit scores will typically decrease as long as bankruptcy is listed on your credit reports. But over time, it will have less of an effect on your scores. Adopting excellent credit habits can help you start rebuilding your credit scores, even right after you've filed for bankruptcy, as credit scoring models like those from FICO and VantageScore® give new information greater weight than older information.

Avoiding excessive debt, most crucially, building a history of consistent, on-time bill payments on your credit reports, are essential measures to getting a credit card after chapter 7 bankruptcy.

Can You Get A Credit Card After Filing Chapter 7 Bankruptcy?

Absolutely, you can. Before you can apply for any new credit, your bankruptcy must be discharged in federal bankruptcy court; the bankruptcy notation does not have to be removed from your credit report; it only needs to be discharged. No matter what chapter is filed, bankruptcy will significantly harm your credit score.

You must first fix your credit report in order to raise your credit score. The procedure is comparable to when someone first begins to use credit. You must deal with the previously present bad things in addition to adding positive habits to your credit record.

How To Apply For Secured Credit Cards After Chapter 7 Bankruptcy?

You can easily apply for Secured credit cards after chapter 7 bankruptcy by following these instructions:

  1. Visit the official website of credit card companies.
  2. Look through the various secured Credit Cards offered by various banks.
  3. Apply for a secured credit card by providing your required documents.
  4. You will get your Secured Credit Card after approval.

When To Apply For a Credit Card After Chapter 7 Bankruptcy?

The most effective and harmful type of personal bankruptcy is Chapter 7. It stays on your credit report for ten years. However, after a chapter 7 petition has been filed, it typically concludes (is discharged) within four to six months.

Thus, while chapter 7 damages your credit record for a longer period of time than other chapters, it takes the least amount of time to start the restoration process. After the initial filing, a Chapter 7 bankruptcy typically takes four to six months to be finished and your debts eliminated. The next step is to apply for a credit card.

Things to Consider before Applying For Secured Credit Card

In an effort to add value to the users, several secured credit cards provide incentive programs, cash-backs, and low-interest rates. When comparing cards, it's important to take into account the following points for credit card approval after chapter 7 bankruptcy:

  • Lower interest rates are preferable. Read the fine print if there is a special introductory rate to learn when it expires and what the ongoing rate will be.
  • A secured card will only help you improve your credit score if the lender informs the credit bureaus about your timely payments. The best lender will provide reports to each of the three major bureaus.
  • Avoid lenders who impose hefty annual fees or application fees.
  • Read carefully about hidden charges such as subscription charges etc, and also compare which card offers more cashback offers, etc. Zolve Azpire Credit Builder Card is one of the best secured credit cards which offers zero interest rate, no hidden fees, and report to credit bureaus. Apply for it and start building credit from the first day.

Thumb Rule is: Prior to submitting an application for a new credit card, your bankruptcy must be fully cleared. Your debt will probably be forgiven if you file for Chapter 7 bankruptcy within four to six months. Rebuilding your credit score requires applying for new credit, but it's also crucial to establish a strategy for choosing and using your credit wisely. Choose easy and credible secured credit cards like Zolve Azpire Credit Builder Card to establish sound financial practices, such as paying your bills on time each month and keeping your balances low, thereby improving your credit score.

Frequently Asked Questions

When can I apply for a credit card after chapter 7 bankruptcy?

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 a credit builder card and start your credit rebuilding your credit journey.

Can I get a credit card after filing chapter 7 bankruptcy?

Although it's hard to get a credit card after bankruptcy, you can easily get a credit builder card. Remember before you may apply for a new credit card, your bankruptcy must be completely wiped. If you file for chapter 7 bankruptcy, your debt will likely be discharged in four to six months.

Will requesting a credit card after filing for bankruptcy damage my credit score?

If a card issuer runs a hard credit check to assess your eligibility for a credit card, you will probably lose a few points on your credit score. Fortunately, you can improve your credit in a couple of months with timely payments and maintaining a credit utilization ratio.

Am I eligible for getting a credit card after filing chapter 7?

Yes, you can apply for a new credit card. Before you may apply for a new credit card, your bankruptcy must be completely wiped. Your debt will likely be dismissed in four to six months if you apply for chapter 7 bankruptcy.

Is getting a credit card after filing chapter 7 a wise idea?

Yes, getting a credit card after bankruptcy is a smart option so you can begin restoring your credit. Although, you can have a hard time finding good credit card companies after bankruptcy. But don’t worry with the Zolve Azpire Credit card, you can raise your credit score and build a fresh, stronger credit history with frequent use, and pay your bills on time.