In order to get a credit card, you have to meet the lending standards of the credit card company. Card companies typically require that you have a minimum credit score in order to qualify for a credit card. However, when you file for bankruptcy, your credit score typically suffers, making it harder for you to get a card. You may still be able to get a credit card after filing for bankruptcy or having your bankruptcy dismissed, but it may be very difficult to do so.
Dismissed Bankruptcy
When you file for bankruptcy, the bankruptcy typically ends once the bankruptcy court discharges the case, meaning you successfully complete the bankruptcy. In this situation, you typically discharge or eliminate all your debts or enter into a payment plan with your creditors to repay the debts over time. However, a dismissed bankruptcy is one in which the bankruptcy case is ended before the court completes the discharge process. This means the debts you owe still exist and your creditors can resume their collections activities.
Credit Scores
Numerous types of credit scores exist, but in general, your credit score is a number ranging from 300 to 850. A person with a score above 720 generally has good credit, according to the Federal Citizen Information Center, while someone with 580 or less has bad credit. Each credit card company makes its own determination for what credit score you need to get a card, but in general it will be much harder to get a card with a score of 580 or lower than it is to get one when your score is 720 or higher.
Bankruptcy and Credit Score
Filing for bankruptcy, even if the case gets dismissed before discharge, is a negative that will lower your credit score. According to Yahoo Finance, a bankruptcy lowers a person's credit score by 130 to 240 points depending on different factors. The higher your credit score, in general, the greater impact a bankruptcy will have on it. The more recent the bankruptcy, the greater the impact on your score and vice versa. So, if you had a bankruptcy dismissed several years ago, this will not lower your score as much as one you filed last month.
Other Options
Even if you're not able to get a traditional unsecured credit card because of a bankruptcy or dismissed bankruptcy, you may be able to get a secured credit card. A secured card, unlike a credit card, is one in which you provide the creditor collateral, typically in the form of a security deposit. If you fail to make a payment, the creditor can then use the security deposit to cover the debt. If you continue to make payments on time and do not have any more negative events on your credit report, you will eventually be able to get an unsecured credit card.
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