How can you get a good credit score after bankruptcy?

A bankruptcy is not a good thing. It stays on your credit card report for 7-10 years. There is a chance that your credit card score will remain low until you take some steps to improve it in a short time.

But it takes a lot of persistence and patience and a steady stream of monthly punctual payments to rebuild credit, respectively. You should think about a shorter period of time when you start applying for credit cards. After bankruptcy, there is a possibility that you will not be eligible for the consumer credit card.

How to rebuild credit in two ways

1. Get a secured card – The secured card provides the best means when you come out of bankruptcy. Through this card, you can deposit some money in your savings account and that deposit secures your line of credit.

For example, if you make a deposit of $ 300 that has an annual fee of $ 29, then your credit card limit will be $ 271. If you pay the bill on time and make small purchases on a monthly basis, this secured card will be very useful for your credit. Using 10 to 15 percent of your line of credit is good, but you need to keep your balances low.

2. Get a retail card: Department store cards and retail cards have relaxed credit requirements that will make you eligible to buy either one after bankruptcy. This can only happen once you have made a series of consistent payments on time via a secure card, respectively.

You must pay the bill in full every month, due to the higher interest rates that are associated with these cards.

How You Can Use Credit Wisely

You’d better use your credit wisely after you’ve been released from the post-bankruptcy period. You can follow the steps below.

1. Set up automatic payments: It happens that several people choose not to receive paper invoices and tend to forget to make the payment on time. Therefore, you must set up automatic payments so that payments are deducted directly from your account each month on the respective due date.

2. Only borrow what you can borrow: As soon as you know your budget and limit, you know what you can afford. If you can’t afford a trip to Bali on your regular budget, don’t risk using a credit card to finance your trip. Please refrain from using your credit card excessively and use it only for those things that you can afford to buy.

3. Make a budget and stick to it: You need to assess what you can manage to pay off your debts on a monthly basis after you have paid your expenses. If your food budget is $ 200, don’t spend more on it. Overspending on an expense will not allow you to pay your debts on time.

Conclution

After bankruptcy, you need to exercise caution and rebuild your credit the right way. You need to make sure you pay your bills on time and avoid bad credit for late payments, respectively. If you use your bank account consistently and responsibly, you will never be a victim of financial hardship.

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