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Post-bankruptcy & BRU restrictions

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JWalsh96JWalsh96 Forumite
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MoneySaving Newbie
Hi all,

Thank for taking time to read my message. I'm just looking for some guidance around rebuilding my credit score after being discharged over 2 years ago but still under BRU restrictions for 12 months.

I know it mentions under the BRU/BRO restrictions that if you are applying for credit over £500, you need to make them aware of your restrictions. I'm looking to get a basic credit card which I can use to slowly build my credit score up again. I came across the Capital One Starter credit card, but I'm sure the limit starts at £1500 which is way to high for my liking and breaches the restrictions anyway.

The question I'm asking is am I able to apply for a basic credit card under BRU restrictions?

Look forward to hearing from you.



  • MorfxMorfx Forumite
    82 posts
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  • JWalsh96JWalsh96 Forumite
    5 posts
    First Post
    MoneySaving Newbie
    Morfx said:
    I'm glad I'm not the only one unsure about this!
  • MorfxMorfx Forumite
    82 posts
    10 Posts First Anniversary Name Dropper
    My theory is you should be ok as long as you don't break the £500 limit.. as per the BRU *My understanding*
  • Minkym00Minkym00 Forumite
    584 posts
    500 Posts Second Anniversary Name Dropper
    You can borrow as much as you like as long as you disclose your bankruptcy /BRU status. 
  • JWalsh96JWalsh96 Forumite
    5 posts
    First Post
    MoneySaving Newbie
    Minkym00 said:
    You can borrow as much as you like as long as you disclose your bankruptcy /BRU status. 
    Thank you for confirming this :smile:! After reading the restriction:
    • try to borrow more than £500 without saying you are subject to restrictions
    I guess it makes total sense. As long as you disclose your restrictions, you can borrow as much as you like, like you said! Thanks so much for confirming Minkym00.
  • edited 8 April at 9:30PM
    MalMonroeMalMonroe Forumite
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    edited 8 April at 9:30PM
    But won't the bankruptcy still be on your credit report anyway, since it remains there for 6 years altogether?

    So yes, you can apply to borrow anything you like, of course - but will you be able to get it? Especially as the bankruptcy is still on your credit report and BRU restrictions are in place for another 12 months? If you apply and your application is rejected, there goes a hard search placed on your credit report before your BRU is even over.

    As someone who went through a DRO process a few years ago, I think it's a crazy idea to attempt to take on any more debt before the bankruptcy and BRU are over. If you have a look around this site, you will see that lenders are tightening up on their criteria and making it more difficult for people to obtain credit - possibly because of the pandemic.

    What I would suggest is getting a copy of your full credit report and having a look what's on there. And maybe waiting until the BRU and bankruptcy are over before even attempting to build up your credit score (which cannot be seen by lenders anyway).

    Although Minkym00 advises you can borrow as much as you like, that just means that you can APPLY to borrow as much as you like. Don't forget that lenders can see what's on your credit report, even if you don't tell them.
  • sourcratessourcrates Forumite, Board Guide
    23K posts
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    With a bankruptcy on your file, its a non starter, most folk who just have defaults can`t get credit, so you have no chance to be fair.

    Probably a good thing as well, as you still seem obsessed with the credit score game, not trying to be awkward here, but has this whole bankruptcy process not taught you anything ?

    Its not best practice to be applying for or obtaining credit in your current position.

    Insolvency is supposed to try and teach you how to live within your means, without the use of any form of credit, however if its your history you want to improve, may I suggest you wait till all this has dropped off your credit files, then apply for a card, which you clear in full each month, so as not to fall back into the debt trap again.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
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  • Sonic101Sonic101 Forumite
    35 posts
    Seventh Anniversary 10 Posts Name Dropper Combo Breaker
    As someone who is considering bankruptcy and terrified at the thought of getting credit cards again and falling into the same trap, I agree with MalMonroe and Sourcrates' comments.

    I can see why you might want certain types of "necessary" credit - for example, mobile phone contract, paying for insurance, or getting a mortgage, but why a credit card? Why not just get a pre-pay credit card, or open a separate basic bank account for spending? 
    The only other reason I could see for getting a credit card is that in some circumstances (say if you want to hire a car or reserve a hotel room), they won't accept them. But how often in reality is that likely to happen?  
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