After Bankruptcy Credit Card Comes at High Interest Rate - Ask the Experts - AARP Bulletin

Can I Get a Credit Card After Bankruptcy

Probably but higher interest rates are likely

Q. I recently declared bankruptcy. I'm wondering if I'll be able to get a credit card from a bank anytime soon. A. It depends. Some banks may turn you down, but others may offer you a card. You're likely to pay dearly for it, though. Count on a higher interest rate for purchases because lenders will consider you a higher risk for repayment. See also: Shop around for the best interest rate. And of course read the fine print to understand the terms of usage. Photo by Getty Images If you do get a credit card after filing for bankruptcy, expect to pay a higher interest rate. If you do get a card, use it judiciously and always pay at least the minimum amount required on time. Better yet, to avoid the elevated interest rate. In a year, or perhaps sooner, you may be able to negotiate better terms. There's also another alternative — using a secured credit card. With a secured card, you put down a deposit, say, $500, and that becomes your credit line. Because it's secured by your funds, it's less risky to a lender. You can apply for a secured card at a bank or credit union. Just make sure the card doesn't have high fees. You may also like: Carole Fleck is a senior editor at the AARP Bulletin.

Related

Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.