Getting Credit After Bankruptcy


It can be challenging to rebuild your credit after bankruptcy. Even after you've been discharged from bankruptcy, it will remain on credit reference agencies' files for six years, meaning lenders are likely to view you as a potentially high-risk customer. This can put you in a disadvantageous position; access to affordable credit can be limited without a strong credit history and rebuilding your rating without access to credit can be challenging.

It's this double bind that Vanquis seeks to address, by offering credit cards with sensible credit limits that are specially designed to help people repair their credit ratings. So far, we have helped over three million people+ to get back on their feet.


Rebuilding credit after bankruptcy


While repairing your credit rating after bankruptcy is difficult, it's not impossible. The most important thing is to follow all the terms of your bankruptcy order while it is in effect, and do everything you can to keep up repayments on any debts that aren't covered by it.

It is sensible to use a budget planner to keep track of your monthly income and outgoings, and if you think you might have trouble meeting a repayment, speak to your advisor as soon as possible to work out a solution.

If you are applying for credit cards or loans while you are bankrupt, you are legally bound to tell a lender that you’re bankrupt if applying for credit of more than £500, and for six months following your bankruptcy discharge. It's a good idea to check your credit reference file to ensure all the information listed is correct and use an eligibility checker, which will only leave a soft footprint on your credit file and which will not affect your credit score.

Once six months have passed since your bankruptcy has been discharged, and assuming you haven't had any problems making your repayments, it is probably sensible to start thinking about applying for credit again. As long as you do it responsibly and you know you can pay back what you borrow, this is one of the fastest ways to rebuild your credit rating, as it demonstrates that you can borrow and repay within limits.

However, it's prudent to borrow from a provider who specialises in helping people to rebuild credit. Not only are they less likely to reject you (which may affect your credit file), but they will be more likely to set limits and terms that you can stay within, helping you to rebuild your finances more quickly and safely.

It may take some time, but by using credit responsibly and paying all your bills promptly and in full, your credit rating will start to change to reflect your ability to deal with the consequences of bankruptcy. 

Vanquis Bank offers credit cards specifically designed to help people in difficult circumstances to rebuild their credit rating. For more information, visit our Credit Cards Page.

Build or Rebuild your credit with a Vanquis Credit Card

  • Manageable starting Credit Limit of between £150 and £1,000^.
  • You could get a Credit Limit increase after your 5th statement and further increases every 5 months, up to £4,000*^
  • Exclusively UK based Customer Service.
  • Online account servicing & SMS alerts.

 

To build your credit rating and be considered for credit limit increases, use your card sensibly, stay within your credit limit and pay your monthly minimum payment on time. Not doing so could harm your credit rating and make obtaining credit more difficult.

Representative 39.9% APR (variable)

World Vanquis Credit Card with slant mirror effect