Being called bankrupt is really a very shameful thing for the people. It happens when someone has taken a huge loan from a bank for business purposes and he/she is unable to pay the amount back. Whenever people plan a business even with all the do’s and don’ts, there is no guarantee that it will run successfully. Those who have invested all their money in that business only, now are left with nothing. Now banks will be behind to collect their payment. Banks acquire their properties etc… and the person is declared bankrupt.
Here we have brought something positive for you. You can have your credit card in spite of bankruptcy. The only condition to get it from the lending companies, bankruptcy should either be completed or discharged. There are not many options available for the choice of credits but you are eligible to apply for some.
Also, these credit cards will be secured hence you need to submit a refundable deposit. There are some unsecured cards as well for which you can apply after getting bankrupt but the interest rate will be quite higher. You need to clear bills on time. Here you get an opportunity to build trust again. We recommend not to make any mistakes again. Always make a wise decision. Always keep funds in your backup otherwise you will have to bear some serious consequences.
Effect of Bankruptcy on Your Credit Score
Lending institution issues unsecured credit cards based on the trust and financial reputation. Suppose your financial account is properly maintained and has a good flow on a monthly basis, banks trust you easily.
On the contrary, suppose you have taken a loan from any bank and you are a bankrupt, no one will trust you this time. Getting Bankrupt means you have not paid the money taken from the banks. Hence there is no guarantee that will clear the payments for future loans. Your credit score becomes poor and getting trust from financial lenders becomes impossible. Hence after Bankruptcy, majorly secured credit cards are given towards the refundable fixed deposit.
Way to Get Credit Cards after Bankruptcy
After bankruptcy, it is hard to get credit cards. This is the fact. You will not get it by doing the regular formalities. In order to apply for a credit card after bankruptcy, you need to check your CIBIL score first. Put it in your record. After that check out the credit cards that are allowed for that respective credit score.
After your research, contact the lending institution and explain everything. Always give focus to get a secured credit card. Deposit the required amount so that banks could have some surety. Based on the fixed deposit you will be able to get the credit card.
Use Credit Cards Wisely
Once you have your credit card, use it smartly. You are already a defaulter and a silly mistake can create unbearable circumstances. So, in order to avoid all those situations, always clear your bills and annual fee on time.