After a Chapter 7 discharge, getting approved for a regular credit card can be difficult. That does not mean you are locked out of credit. Several types of cards are designed for people who are rebuilding, and the right one can help you add positive history to your reports month after month.
This guide focuses on the types of cards that tend to work after bankruptcy, how to compare them, and a few examples whose current terms we checked on the issuers’ own websites. Card terms change often, so always read the issuer’s current disclosures before you apply.
Why Your Card Choice Matters After Chapter 7
A Chapter 7 bankruptcy can stay on your credit reports for up to 10 years from the filing date. The accounts you discharged typically show as “discharged in bankruptcy” with a $0 balance. If those were your only credit accounts, your reports may have little recent positive information.
New, on-time payment history is what gradually offsets the bankruptcy. FICO’s own guidance on rebuilding after bankruptcy suggests getting a secured card and confirming that it reports payment history to the credit bureaus. For a fuller picture of how the bankruptcy itself is reported, see our guide to how bankruptcy affects your credit score.
Types Of Credit Cards That Work After Bankruptcy
Secured Credit Cards
A secured card requires a refundable security deposit, which usually becomes your credit limit. Because the issuer holds collateral, approval standards are typically more flexible than for unsecured cards. You use the card like any other credit card, and your payments are reported to the bureaus.
Some secured cards offer a path to “graduate” to an unsecured card and get your deposit back after a period of responsible use.
Credit-Builder Cards
Credit-builder cards are a newer category. Many are linked to a checking or deposit account and let you spend only money you have moved into a secured balance. Some do not perform a credit check at application. Features and reporting vary widely, so confirm how the account shows up on your reports.
Store Cards
Retail store cards can be easier to get than general-purpose cards, but they usually work only at one retailer and often carry high interest rates. If you go this route, use the card for planned purchases and pay the balance in full.
Unsecured Cards For Rebuilding Credit
Some issuers market unsecured cards to people with damaged credit. These can come with annual fees, monthly maintenance fees, or low starting limits. Read the fee schedule carefully, because fees can consume much of a small credit line.
How To Choose A Card After Chapter 7
- Reports to all three bureaus. A card that reports to Equifax, Experian, and TransUnion helps all three of your reports, not just one.
- Low or no annual fee. Every dollar in fees is a dollar not going toward your goals.
- A clear graduation path. Look for an issuer that reviews accounts for credit line increases or upgrades to an unsecured card.
- Reasonable deposit. A lower minimum deposit makes it easier to start.
- No credit check, if your recent history is very thin. Some cards approve applicants without a traditional credit check.
Issuers That May Decline Recent Filers
Not every issuer will approve you shortly after a bankruptcy, even for a secured card. Policies vary, and many issuers do not publish their bankruptcy rules. Two practical points are worth knowing.
First, a creditor that lost money in your bankruptcy is unlikely to approve you again, at least for a while. Some banks keep internal records of losses even after the account ages off your credit reports. If you discharged a card from a particular bank, consider applying elsewhere first.
Second, multiple applications in a short time can add hard inquiries. Researching cards and checking your own reports does not hurt your score, as explained in our article on whether checking your credit score lowers it.
Before you apply, it helps to check all three bureau reports to confirm your discharged accounts show a $0 balance, since an incorrect balance could affect an issuer’s decision.
Examples Of Cards Open To Rebuilding Credit
The following cards were listed on their issuers’ websites at the time of writing with features relevant to people rebuilding credit. This is not a ranking, and inclusion is not an approval guarantee. Interest rates and fees change, so check the issuer’s current terms.
| Card | Type | Credit Check To Apply | Reports To | Notable Features |
|---|---|---|---|---|
| OpenSky Secured Visa | Secured | Issuer states no credit check | All three bureaus | $200 minimum deposit; annual fee applies |
| Capital One Platinum Secured | Secured | Issuer states no credit score required | All three bureaus | No annual fee; refundable deposit of $49, $99, or $200 based on creditworthiness |
| Chime Card (formerly Credit Builder) | Credit-builder | Issuer states no credit check | All three bureaus | No annual fee or interest; requires a Chime Checking Account |
OpenSky Secured Visa
OpenSky advertises no credit check to apply and reports to all three bureaus. The minimum deposit is $200, and the card carries an annual fee. The issuer says cardholders could qualify for credit line increases or better products after six to 12 months, though that is not guaranteed.
Capital One Platinum Secured
Capital One lists no annual fee and a refundable minimum deposit of $49, $99, or $200 depending on creditworthiness, and states that it reports to the three major bureaus. Capital One says responsible use could lead to an upgrade to an unsecured card in as little as six months. Its page says no credit score is required to apply, but it does not address bankruptcy, so approval after a recent filing is not assured.
Chime Card
Chime’s credit-building card, which replaced its Credit Builder product, states that no credit check is needed to apply, charges no annual fees or interest, and reports to TransUnion, Experian, and Equifax. You must open a Chime Checking Account to apply.
How To Use Your New Card To Rebuild
Getting approved is only the start. How you use the card is what shapes your reports.
- Charge a small, regular expense, such as a streaming subscription or a tank of gas.
- Pay the statement balance in full and on time every month.
- Keep your balance low relative to your limit when the statement closes.
- Set up autopay as a backstop so you never miss a due date.
- Avoid cash advances and fees that eat into your available credit.
Your scores will not change overnight. Lenders report on their own schedules, which our guide on how often your credit score updates explains. Over time, a steady record of on-time payments carries more weight while the bankruptcy’s impact fades. See our credit repair resources for more steps.
Avoid These Common Mistakes
- Opening too many cards at once. Start with one or two and add more only when you can manage them comfortably.
- Paying high fees for a small limit. Compare the total yearly cost to the credit line.
- Falling for “guaranteed approval” pitches with upfront charges. Legitimate issuers disclose fees clearly.
- Ignoring identity theft risks. New accounts you did not open are a red flag. Our identity theft guide explains what to do.
If you are still deciding whether to file, read can you file bankruptcy on credit card debt and our comparison of debt settlement vs. bankruptcy.
As your new card starts reporting, monitoring all three bureau reports lets you confirm the on-time payments are showing up everywhere and catch errors early.
Frequently Asked Questions
How Soon After Chapter 7 Can I Get A Credit Card?
Some people receive offers shortly after discharge, and secured or no-credit-check cards can be available right away. Approval depends on each issuer’s policies, your income, and your reports.
Should I Reaffirm A Credit Card To Keep It?
Reaffirming means agreeing to stay liable for a debt that would otherwise be discharged. Credit card reaffirmation is uncommon and should be discussed with your attorney, because you give up the protection of the discharge for that balance.
Will A Secured Card Really Help My Credit?
A secured card that reports to the bureaus adds payment history like any other card. myFICO recommends confirming the card reports to the bureaus. Results depend on how you use it and on the rest of your credit file.
Can I Get A Card From A Bank I Discharged Debt With?
It is possible but less likely. Many lenders are reluctant to approve someone whose debt they wrote off, so applying with a different issuer first often makes sense.
Which Credit Score Do Card Issuers Use?
Issuers use different models, including various FICO versions. Our guides to the credit score rating system and FICO Score 8 explain the most common ones.
Important Note
This article is general information, not legal or financial advice. Card terms and approval criteria change and are set by each issuer. Before making decisions about bankruptcy or rebuilding credit, consider speaking with a bankruptcy attorney or a nonprofit credit counselor. The U.S. Trustee Program maintains the official list of approved credit counseling agencies.