If you had filed bankruptcy and looking to start life again and manage finance more effectively, then you need to get right back and apply for credit cards. Credit cards have different balance limits, but you have to maintain discipline when you again apply for credit cards. You have to make small purchase and pay amount on time by the end of every month. Remember that you keep control on your spending habits, do not spend more than what you earn and end up in bankruptcy again.
If you wish to acquire assets and have a good credit, you have to avoid those pitfalls that led you to file bankruptcy earlier.
The best idea to start with secured credit card after you filed bankruptcy. This type of credit cards one must have collateral cash deposit. In this case the amount you put down will be the credit limit for you.
- Once you repay your credit balance every month on time then the credit company will give you a bonus of extending your credit limit with out asking to raise your collateral deposit. In case you do not repay the balance you owe your collateral deposit will solve this purpose.
- When trying to get credit card then look for the company that does not charge you with annual fee which is disgusting.
The other way to get the credit card is to get a co-signer and he requires having a good credit ratings. If you take the benefit of co-signer, remember that you pay your credit on time. If you miss your payments than you co-signer will be liable for that debt.
One should follow few steps to ensure you need not file bankruptcy again.
- Plan to stay out of debt: if you looking to manage your debt, then you need to plan to become debt free. Then implement the plan and stick to it until you get out of the debt.
One must make sure that they must pay their credit card debt on time and learn to manage them properly.
- Monitor your credit reports: one must regularly continue to monitor your credit report with three credit reporting agencies. If you require any corrections to be made to your credit report then make request to credit reporting agencies to correct errors on time, so that they does not make much damage to your credit score. After receiving the credit report you look at following things.
If you obtained bankruptcy discharge cross check that the accounts included in the bankruptcy claim are marked as satisfied or paid in full or not on you credit report.
Check for the limits of you credit card and they are noted correctly on your credit report.
If there are any negative entries on your credit report that are incorrectly noted on your credit report then you must request credit repositories to correct them because they will cause majority of damage if they are not corrected.