How Long After Bankruptcy Can I Get a Credit Card?
In Canada, claiming bankruptcy often leaves a mark on your credit report that lasts for up to seven years.
This mark often reduces your report score down to the minimum level, making it difficult to open new lines of credit such as an unsecured credit card.
Coupled with the likelihood of poor credit before you filed for bankruptcy, you’re likely going to be in a situation where you can’t seek financial aid in any form.
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Why can’t I get a credit card after filing bankruptcy?
Most lenders will look at your credit history before they allow you to open up a new line of credit.
In addition, they’ll also look at your income to see if you can afford to have a credit card.
However, even with a steady job, your credit history is going to be a huge factor when it comes to accepting you for a credit card.
As such, having a bankruptcy mark on your credit report will likely make it difficult for you to open a new line of credit.
With a low rating, lenders will consider you a high-risk customer and will either offer you very bad deals or outright refuse to give you a credit card.
There are alternatives to a regular credit card.
Some lenders might offer a product with extremely high-interest rates to dissuade you from using it too much.
These products can help you repair your credit rating and will help you become eligible for better interest rates on different lines of credit.
However, this doesn’t help in terms of removing the bankruptcy mark on your credit report since it will stay there for up to seven years after you’ve filed it.
You may want to stay away from credit cards after bankruptcy
Bankruptcy can happen for a lot of different reasons, but one of the most common ones is poor budget management.
If you’re struggling to manage your salary and expenses, then it may be worth skipping the credit card until you’re more confident in managing your finances.
While using a credit card wisely can help with your financial health, there are often monthly fees and high interests that you’re forced to deal with as a customer with a poor credit rating.
If you’re serious about repairing your credit rating, then this is often the only way to show that you’re a responsible borrower that understands how to manage their money.
Understanding your options for credit during a bankruptcy
However, we understand that there are situations where you might still be interested in opening a line of credit despite filing for bankruptcy.
In this case, we suggest you contact us for more advice and to learn more about debt relief options that you can choose instead of filing for bankruptcy.
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?