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.