Credit Card After Discharge from Bankruptcy in Canada


Category: Bankruptcy Q&A Leave a comment

Question: I filed bankruptcy in Canada and was discharged from debt after bankruptcy in 2008. How do I go about getting a credit card? How long do I need to wait before applying for a credit card after bankruptcy?

Answer: There are a number of steps to take to repair your credit after bankruptcy in Canada.  One good step is to get a credit card, but it’s not the first step.

The first step is to save money.  Set a goal to save $1,000, or more, so that you have an emergency fund.

Then, once you have money saved, and you are up to date on all of your monthly bills, you can apply for a secured credit card.  You give the credit card company a deposit of $1,000, or more, and they give you a credit card with a $1,000 limit.  If you are discharged from your bankruptcy, you should qualify.

The credit card appears on your credit report as a normal credit card, so it helps to rebuild your credit.

After a year if your account is in good standing they will return your security deposit.

You can find more information on this page about credit repair with a secured credit card.

Category: Bankruptcy Q&A |

About Bankruptcy Canada Trustee

Bankruptcy Canada is a free service provided by bankruptcy trustees in Canada to explain how bankruptcy works, how you can avoid bankruptcy, and helps you decide whether bankruptcy is the right option for you and your family.

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