After a bankruptcy in Maryland, you could keep your credit card upon the creditor’s approval. If you can’t do this, you can apply again upon fully discharging your bankruptcy. Another option is to get a secured credit card instead of an unsecured one.
Secured credit card
With a secured credit card, you pay a deposit of $200–$500 to get the card. It’s a more limited type of credit card than an unsecured credit card. However, you may find it helpful to start with a secured credit card when you are working on developing financial discipline and rebuilding your credit score. Even if you would qualify for an unsecured card, you might decide to begin with a secured card for these reasons and to regain confidence in your ability to make good financial decisions.
You must wait until after a bankruptcy discharge to apply for an unsecured credit card. How long this takes depends on the type of bankruptcy and your situation. A bankruptcy discharge takes four months to five years. Chapter 7 bankruptcies discharge faster than Chapter 13, but they stay on your credit report for 10 years. A Chapter 13 bankruptcy is on your credit report for seven years from the filing date. It takes four to six months to discharge a Chapter 7 bankruptcy and about three to five years for a Chapter 13.
Tips for getting a credit card after bankruptcy
You may want to ensure that you are ready to manage a credit card. If your budget is tight, it’s a good idea to work on reducing your expenses and increasing your income. Establish a rule for yourself that when you get a credit card, you don’t overextend yourself always pay off your monthly balance. The purpose of getting a card again is to rebuild your credit without paying interest.
You can apply for an unsecured credit card after bankruptcy as long as your case has finalized. You can apply for a secured card today. Before owning a credit card again, you may want to focus on sticking to a budget to develop strong financial habits.