Can I get a credit card if I'm bankrupt or still repaying past credit?
Trying to get a credit card or any other form of credit if you have had severe problems in the past, such as bankruptcy, can prove difficult.
It can also be difficult for those that have tarnished credit histories and those that are still repaying high levels of debt to get a credit card.
Some things that you should bear in mind if you are in one of these situations include:
- Bankrupts will normally have to look at prepaid cards rather than regular credit cards.
- Those with existing debts and tarnished credit histories will find a number of companies that may be able to offer regular credit cards.
- Your eligibility for a credit card will partly depend on your credit score and the amount of debt that you are still repaying.
Credit card options that are available
If you are experiencing problems such as those mentioned above there are a number of options available, and the right solution will depend upon your situation.
For instance, if you are bankrupt then you will not be able to get a regular credit card, as these are subject to credit checks.
However, you will find that pre-paid credit cards are becoming more and more popular, and these can be used in the same way as regular cards except you will not get yourself into debt, will not be charged interest, and will not have to subject to credit checks.
If you are still repaying past credit then your eligibility for a credit card will depend on a number of factors. Your credit rating will be taken into account, so if you regularly make late payments or miss payments altogether you may find that you will be turned down for many cards.
The level of debt that you are in, along with the amount that you pay out on your existing debts, will also be taken into account in order to assess your eligibility.
If you have a tarnished credit history as a result of past debts or existing debts that you are still repaying then you may find that your choice is very limited when it comes to getting a credit card.
However, there are some companies that specialise in credit cards for those with poor credit, such as Capital One, Barclaycard's Initial credit card, Vanquis Bank and the aqua credit card. Although interest rates are higher than on standard cards – and credit limits tend to be lower – it may be worth approaching these specialist lenders rather than risking rejection from mainstream credit card providers.
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