One of the main consequences of filing for bankruptcy is the effect it has on your credit score. Although using a credit card after bankruptcy is one of the best strategies for credit repair, it is important to manage your credit cards wisely.
- Pay Bills on Time – After filing for bankruptcy, it is essential that you can prove to lenders that you are financially responsible. To accomplish credit repair, make sure that you are paying all of your credit card bills on time and not letting any payments, regardless of how small they are, go into delinquency.
- Budget and Save – One strategy to use to ensure you’re paying your bills on time is to make sure you know how much your expenses are and what your monthly income is. Devise a comprehensive budget that allows you to track your expenses and where your money is going.
- Slowly Start Using Credit – Using credit cards can help you accomplish credit repair after filing for bankruptcy. However, this doesn’t mean you should use your credit card for everything. Get one credit card, use it occasionally, pay the balance off immediately in full, and refrain from getting into debt.
- Use a Secured Card – Finding a lender that is willing to issue you a credit card after bankruptcy may be difficult. If you do not qualify for regular credit cards, try applying for a secured credit card to use at first.
Credit repair after bankruptcy isn’t easy. Let us provide you with more strategies you can use to rebuild your credit after the filing process is over.