No one likes to file for bankruptcy and give up their assets. But with the rising financial challenges in Canada, the number of personal bankruptcies are increasing. If you’ve filed for bankruptcy in Canada, it’s time to rebuild your finances. But how can you do this? An excellent alternative is to get a credit card and make payments on time.
Wondering when you can apply for a credit card after bankruptcy? Keep reading this blog to learn more about it.
Personal Bankruptcy In Canada
If you’re filing for personal bankruptcy, you’d want to know when you can apply for a credit card. The bankruptcy will stay on your credit report for six to seven years, but that doesn’t mean you can’t get a credit card in that period. You can apply for a credit card even if you’ve got bankruptcy on your credit reports.
It’s crucial to note that even if you’re eligible to apply for a credit card after bankruptcy, it doesn’t mean the bank will approve your application. Credit card companies will still look at your credit history and financial situation before deciding.
What’s The Best Time To Apply For A Credit Card After Bankruptcy In Canada?
Bankruptcy is an emotionally and financially challenging process. One of the financial challenges you may face is rebuilding your credit. Part of rebuilding your credit is using credit cards responsibly. But after bankruptcy, it can be tricky to get approval for a new credit card. So when is the best time to apply for a credit card after bankruptcy in Canada?
The answer may depend on your individual situation. If you’re able to get approved for a secured credit card soon after your bankruptcy discharge, that may be the best option for you. With a secured credit card, you’ll have to give a security deposit equal to your credit limit. The deposit acts as collateral in case you default on your payments.
Why Should You Use A Credit Card After Bankruptcy?
Undoubtedly, using a credit card can help you rebuild your credit score. If you use your credit card responsibly and make all of your payments on time, you can improve your credit score. A better credit score will make it easier for you to get loan approvals in the future.
Also, utilizing a credit card can help you keep track of your spending. After bankruptcy, you must examine your spending and stick to a budget. Having a credit card can help you do this by giving you a clear picture of where your money is going each month.
Get Credit Cards With Cash Back
If you want to use credit cards with excellent rewards, consider connecting with the team at Great Canadian Rebates. We offer top-of-the-line American Express and Scotiabank credit cards for our clients in Canada. So, what are you waiting for? Reach out to our team for more details about our cash-back credit cards.