What Are the Best Unsecured Credit Cards After Bankruptcy?

Unsecured credit cards are a type of credit card that doesn't require collateral, such as a deposit, in order to be approved. After filing for bankruptcy, it may be difficult to obtain credit cards, but there are some unsecured credit cards available for those who need to rebuild their credit. In this article, we will discuss the best unsecured credit cards after bankruptcy and what you should consider when applying for one.

1. Capital One Platinum Credit Card

The Capital One Platinum Credit Card is a good option for those who have recently filed for bankruptcy. It has no annual fee and offers a credit limit increase after five months of on-time payments. However, the interest rate is relatively high, so it's important to pay off the balance each month to avoid accruing interest.

2. Discover it Secured Credit Card

The Discover it Secured Credit Card is a good option for those who are looking to rebuild their credit. It requires a security deposit, but has no annual fee and offers cash back rewards. After eight months of on-time payments, Discover will review the account to see if the deposit can be returned and if the cardholder can be upgraded to an unsecured card.

3. OpenSky Secured Visa Credit Card

The OpenSky Secured Visa Credit Card is a good option for those who are unable to qualify for an unsecured credit card. It requires a security deposit, but has no credit check and offers a credit limit increase after six months of on-time payments. However, it has a high annual fee and a high interest rate, so it's important to pay off the balance each month to avoid accruing interest.

When applying for an unsecured credit card after bankruptcy, it's important to consider the following factors:

1. Credit score: After bankruptcy, yourcredit scoremay be low, so it's important to apply for credit cards that are designed for those with bad credit or no credit.

2. Fees: Many credit cards for those with bad credit have high fees, such as annual fees and late fees. It's important to read the fine print before applying for a credit card to avoid unexpected fees.

3. Rewards: Some credit cards for those with bad credit offer rewards, such as cash back or points, which can be a good incentive to use the card responsibly. However, it's important to not overspend in order to earn rewards.

In order to improve your chances of being approved for an unsecured credit card after bankruptcy, it's important to:

1. Pay bills on time: Paying bills on time is one of the most important factors in building credit. Set up automatic payments or reminders to ensure that bills are paid on time each month.

2. Keep balances low: Keep balances low on credit cards and other lines of credit. This shows lenders that you are responsible with credit and can manage debt.

3. Monitor credit reports: Monitor credit reports to ensure that there are no errors or inaccuracies. Dispute any errors with the credit bureaus to improve your credit score.

In conclusion, there are unsecured credit cards available for those who are looking to rebuild their credit after bankruptcy. When applying for a credit card, it's important to consider factors such as credit score, fees, and rewards. By paying bills on time, keeping balances low, and monitoring credit reports, you can improve your chances of being approved for an unsecured credit card and rebuild your credit over time.