Credit Cards After Bankruptcy
After filing for bankruptcy, it’s very important that you start to rebuild your credit. Simply using cash and keeping your bank account in good standing won’t cut it. The easiest way to build your credit score back up is by applying for a few credit cards. If credit cards were your weakness before, learn from your mistakes and be diligent with your spending this time. In the long term, correct use of a few different credit cards can work wonders on your FICO score.
Make sure each card you apply for has a different credit balance. Use it only for small purchases and then pay off the balance at the end of the month. Some people believe it’s best to let it ride for at least a month, paying the minimum along the way, but it seems to work well both ways. Just don’t slack off and let it build up again, or you’ll get back into the vicious debt cycle. Also, do not go crazy with your new credit cards.
Learn your lesson from your previous mistakes and get on with your life. Get a better job, or two, and keep improving over time. Consider applying for an American Express Blue card, a Chase Visa or even a store credit card from a place like Home Depot, or Target. Talk to a few of your friends and find out about low-interest rate cards that they may use. As long as you pay the balance off within a month or two, you shouldn’t get hit with any huge fees regardless of the interest rate though.
Instead of regularly using your card for small things, sometimes it’s best to setup a few bill payments on the card. This can include your gym membership, water bill, electricity, Internet, cable, and so on. All things that you have budgeted for that can help rebuild your credit score will work. Make sure to not let it ride more than one month though. Get it paid down as soon as you can.
Be super cautious with your fresh lines of credit. If you have trouble, think back to all of the heartache, suffering and stress you went through with your bankruptcy. That should be way more than enough pain to help you stay out of debt from now into the future. You’ll have the tendency to spend, but just fight it. You can do it! Just stay strong.
Applying and using credit cards after your bankruptcy is definitely the right thing to do. Just stay diligent with the payments and everything will continue to improve, including your life and finances.
Make sure each card you apply for has a different credit balance. Use it only for small purchases and then pay off the balance at the end of the month. Some people believe it’s best to let it ride for at least a month, paying the minimum along the way, but it seems to work well both ways. Just don’t slack off and let it build up again, or you’ll get back into the vicious debt cycle. Also, do not go crazy with your new credit cards.
Learn your lesson from your previous mistakes and get on with your life. Get a better job, or two, and keep improving over time. Consider applying for an American Express Blue card, a Chase Visa or even a store credit card from a place like Home Depot, or Target. Talk to a few of your friends and find out about low-interest rate cards that they may use. As long as you pay the balance off within a month or two, you shouldn’t get hit with any huge fees regardless of the interest rate though.
Instead of regularly using your card for small things, sometimes it’s best to setup a few bill payments on the card. This can include your gym membership, water bill, electricity, Internet, cable, and so on. All things that you have budgeted for that can help rebuild your credit score will work. Make sure to not let it ride more than one month though. Get it paid down as soon as you can.
Be super cautious with your fresh lines of credit. If you have trouble, think back to all of the heartache, suffering and stress you went through with your bankruptcy. That should be way more than enough pain to help you stay out of debt from now into the future. You’ll have the tendency to spend, but just fight it. You can do it! Just stay strong.
Applying and using credit cards after your bankruptcy is definitely the right thing to do. Just stay diligent with the payments and everything will continue to improve, including your life and finances.
