How to Build Good Credit after Bankruptcy
Bankruptcy had a serious impact on you. It affected your ability to get credit, travel overseas or gain some types of employment. Know the consequences of bankruptcy attorney riverside county ca.
Now, you want a fresh start and wanted to rebuild good credit standing. Credit requires you to borrow money in some form. Sound ironic but this is how the banks and credit card issuers will check your credit history and how you manage your credit obligations paid on time. Bad credit affects results of your application for loan to finance your home, education or even getting a job. You can build good credit by borrowing out a loan and paying it back on time. It can be a mortgage, car loan, student loan, or personal loan. Generally, all loans borrowed from a major bank or credit union will help you build your credit score.
So, here are some ways you can build good credit:
Apply for a Secured Credit Card: Secured credit cards reduces credit risk as you will make a security deposit against the credit limit before you can be approved.
Apply for Retail Store Credit Cards: Often have less strict credit requirements. Typically offer low credit limits with high-interest rates and can only be used in a specific retail store. Keep in mind tho’ hat you’re using this card to help you build good credit, and not go on a shopping splurge.
Pay on Time: The more on-time payments you have, the more your credit score will improve.
Start with One Credit Card: The more credit you have, the more you’ll end up using and the harder it will be to keep up with your balances and payments.
Watch How Much You Borrow: Never borrow more than you can afford to pay each month. Borrowing within your means shows future lenders and creditors know that you’re a responsible borrower. The same thing goes for loans. Only take out as much loan as you can afford to repay. Review your budget to see what monthly payment you can afford.