Credit Building > Getting a credit card after filing for bankruptcy

Getting a credit card after filing for bankruptcy

Wollit Team1 minute read · Updated 30th June 2024

After filing for bankruptcy in the UK, you will find it hard to get a new credit card for the next few years. Bankruptcy severely damages your credit score and makes you appear high-risk to lenders.

In fact, until you are discharged from bankruptcy (usually 12 months after filing), it is illegal to borrow more than £500 without disclosing your bankruptcy status to the lender.

Not only this, but failing to disclose bankruptcy when borrowing over £500 is a criminal offence.

After the bankruptcy is discharged, you can legally borrow any amount. However, most lenders will refuse your application or charge high interest rates. This will be the case while the bankruptcy will still be on your credit report.

The bankruptcy will stay on your credit file for six years from when you were declared bankrupt.

During this time, you may only be able to get a secured credit card, where you put down a deposit that becomes your credit limit. Some credit cards may accept you once fewer years have passed, but not all. And even then, the terms will be pretty bad.

Bankruptcy should be a wake-up call to change spending habits. Applying for credit too soon could lead to repeating past mistakes. Make sure you don’t risk accumulating more debt that you may struggle to repay.

The best thing to do is to focus on rebuilding your credit slowly and responsibly after bankruptcy.

Here are some things you can do:

Register to vote at your current address (or update your electoral registration if you’ve moved recently).
Wait until the bankruptcy is discharged before signing up for any credit-building tool (like a credit-building card or loan).
Until the six years have passed, consider less risky credit builder options, like credit-building apps.

One such app is Wollit.

Wollit reports a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies, helping you build a history of debt repayments without the risk of high-interest charges or maxed-out credit card limits.

It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you’re responsible and pay your bills when they’re due.

In time, having a history of better financial habits will improve your credit score, and you’ll find yourself eligible for better and more affordable credit cards.