Credit Card After Bankruptcy Canada

Category: After Bankruptcy (2) comments

Is it possible to get a credit card after bankruptcy in Canada? Yes. Here are three ways to get a credit card after your get your discharge from bankruptcy. The first two options will also allow you to have a credit card during bankruptcy.

Get A Supplementary Card

The first method can be used even while you are bankrupt: Have a family member or friend apply for a new credit card, and include you as a supplementary card holder. The card will belong to the person who applies for it, and they are fully responsible and liable for it, so to protect themselves they should only apply for a card with a low limit, say $500 to $1,000.

NOTE: There is a difference between a supplementary card and a joint card. If two people apply for a card together, the credit card company will consider both of their credit histories, and both people are fully responsible for the card. A supplementary card is solely the responsibility of the person applying for it. For example, if a husband applies for a card and lists his wife as the supplementary card holder, she gets a card with her name on it, but she doesn’t apply for it, so she can’t be held legally responsible for the debt.

Get A Prepaid Card

The second option is a prepaid credit card. Similar to prepaying for cellphone minutes, you “load” the card with money, and you can spend whatever is on the card. Once the money is spent, the card is worthless, unless you re-load it. A word of caution however – these cards are expensive. There is usually a large fee to load the card. Use these only when you have no other payment option.

Apply For A Secured Credit Card

The third option is to wait until you are discharged from bankruptcy, and then apply for a secured credit card. A secured credit card works just like a regular credit card, but you can only spend up to the amount of your security deposit. If you give the credit card company a $1,000 deposit, you get a credit card with a $1,000 limit. You can find more on this link to our secured Visa card page that will also help rebuild your credit.

There are ways to get a credit card after bankruptcy in Canada, but be careful, you don’t want to get back into debt.

Category: After Bankruptcy |

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  1. Nick

    So I applied for a Canadian Tire card before signing and paying for bankruptcy. Haven’t received it yet because it went to my moms and she sent it to me. It’s still at zero and hasn’t been activated. Can it now be activated and used during bankruptcy? It was within days of each other.

    1. Ted Michalos

      When yo file for bankruptcy you are required to surrender all of your credit cards, even cards with no balance owing. You have the right to call any of your credit card companies and ask them if they will re-instate your card, but you have to tell them that you have filed for bankruptcy so they can make an informed decision. I think you can imagine how often they let you use the card…

      If you need a credit card after you file for bankruptcy then perhaps a secured credit card will do. With a secured card you place money on deposit in a savings account and the bank (or credit card company) issue you a card with the same limit as your deposit. As long as you make your payments it works like a regular credit card – miss a payment and they take your deposit and cancel the card. This is also a good way to start rebuilding your credit. Check at your bank to see if they’ll issue a secured card (most do), or try Capital One on-line.


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