Filing for personal bankruptcy can be scary. To most Canadians, it feels like the end, and bankruptcy is often truly the last option.
In Canada, any person who has been freed from bankruptcy is unlikely to have credit cards. Why? That is because at the time of bankruptcy, he/she had to give up on all their credit cards, even if they had a ‘0’ balance. It may be difficult to believe but there are actually a few places that are willing to give you credit cards, regardless of the fact that you were released from bankruptcy just a day before.
Yes, the good news is that there are quite a few possibilities of having credit cards in the future. And this will only help you boost your credit score.
Here’s some detailed information regarding these credit cards:
Supplementary cards can even be utilized when you are bankrupt. This is how it works: you can ask one of your family members or even a friend to apply for a credit card, including you as a supplementary card holder. Keep in mind that supplementary cards will belong to the individual applying for it, and they would hold full responsibility of it. Therefore, in order to protect themselves, they often apply for a supplementary card with credit limitations up to $500-$1000.
It must be noted that there is a clear difference between supplementary cards and joint cards. For instance, if two people apply for a credit card, the credit card company will examine the debt history of both applicants, holding them fully responsible. However, supplementary cards are solely the responsibility of the person applying for it.
Consider this: if a wife files an application for a credit card and states her husband as a supplementary card holder, the card would have the husband’s name on it. However, the husband wouldn’t be responsible for it – as the wife applied for the card.
This is similar to making prepayments for mobile phone minutes. You charge some money on the card, and spend the available balance. When you spend all the money, the card becomes useless – of course, unless you load it again. But remember, these cards are quite expensive. Typically, prepaid cards help when you don’t have any other option for making payments.
Secured Credit Card
You will have to wait until you are released from bankruptcy in order to apply for secured credit card. This one is similar to an ordinary credit card; however, you can only spend up to the amount kept in your security deposit. For instance, if you give $500 as security deposit, you cannot spend more than $500 on that card.
Remember, there are a number of ways to attain a credit card after bankruptcy in Canada, but it’s always a good move to consult a professional credit counsellor. At EmpireOne, we have saved our clients more than $300,000,000 in Toronto, Whitby, Mississauga and surrounding areas, and still counting. From clearing unsecured debt, to resolving credit problems, and re-establishing credit, count on us for all your debt management needs. Call (416)900-2324 now.