Getting Credit Cards After Bankruptcy
If you have recently filed for bankruptcy, the last thing you probably want to think about is getting a credit card. After all, credit card debt is probably one of the things that put you into bankruptcy to begin with. However, a credit card may be exactly what you need to start you on the road to rebuilding your credit score. If you’re asking yourself, “Credit cards after bankruptcy – why should I get one?” read on to find out the answer.
Credit Cards After Bankruptcy – Why Should I Get One?
There is no question that credit cards have led to the financial downfall of many people. However, they can put you on the path to financial recovery if used properly. The key is to set up very strict guidelines for your use of the card before you get it and then stick to them no matter what.
When you get a credit card for the purpose of rebuilding your credit, it is best to choose one or two bills per month that you will pay using that card. For example, you might pay your electric and phone bills with the credit card each month. Your credit limit will probably be low, so you might want to choose your least expensive bills. Try not to charge more than 50% of the credit limit at any time, because if you get too close to your limit it will negatively affect your credit score.
Make sure that you never leave a balance on the card from month to month, because this can easily turn into a habit. As soon as you get the credit card bill each month, pay it off in full. If money is tight one month and you leave a $50 balance on the card, you will have a hard time paying the bill the next month too, because now there is an extra $50 owed, plus interest.
If you use the card regularly for one or two bills each month and pay it off when the bill comes, you will have a small balance on the card that will show up on your credit report most months, and the payments that you make on time each month will be positive marks on your credit that will help raise your credit score.
Now you know the answer to the question, “Credit cards after bankruptcy – Why should I get one?” If you pay your credit card bill on time each month and keep the balance under 50% of your credit limit, the payments that you make on the card will help you rebuild your credit so that you will be able to obtain financing in the future when you need it to buy a new home or vehicle.Sometimes getting approved for a credit card after bankruptcy is tough. There are a few credit card companies that give credit cards with little or not credit. Get your second chance at a bank account or credit card.
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