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EASY WAYS TO MAKE YOUR CREDIT CARD WORK FOR YOU

Harris-Courage & Grady, PLLC July 28, 2017

Many of our bankruptcy clients have gotten into trouble with their credit cards. They have gotten used to the credit cards being in control of their lives.

After filing bankruptcy, you won’t owe anything on your credit cards.

When you get a new credit card, you can make it work for you. You can quickly improve your credit score, and enjoy some extra credit card perks.

Here’s how:

  1. Stay On Top of Your Due Dates. Paying on time is critical, especially when rebuilding your credit score after filing bankruptcy. You cannot afford to pay your credit card late. Put reminders in your calendar, or schedule a time every month to pay all your bills. Always pay your credit card on time.

  2. Pay Your Balance In Full. It’s best to pretend that your credit card is a debit card and pay off the full balance each month. Don’t run up any credit card debt, not even a little! After filing for bankruptcy, you will not be able to file for another 8 years. Don’t risk putting yourself through 8 more years of collection misery.

  3. Switch Your Secured Credit Card to an Unsecured Credit Card. Right after filing, it’s likely that the only credit cards you will qualify for are secured credit cards. That means that you make a deposit with the credit card company—if you deposit $500, then you get a credit card with a $500 limit. You get your deposit back when you cancel or convert to a traditional credit card. After a year of timely payments, your credit score will likely be high enough to switch to a traditional credit card. Make the switch to a card with no fees, and see if you can qualify for a cashback card.

  4. Keep Up Your New Habits. Once your credit score has improved and you can qualify for a rewards credit card, keep up your good habits. Paying on time and paying off your balance in full keeps the credit card working for you.

Filing bankruptcy doesn’t mean you can never have credit again. Bankruptcy is a chance to start over and use credit more responsibly. Our firm offers a credit improvement program to help you qualify for a regular interest car or home loan only 2 years after filing. Call us to learn more.