Smart Credit Card Habits To Adopt After Bankruptcy
Using credit cards after bankruptcy can seem like a counterintuitive action for many people. After all, the bankruptcy process comes with many potential long-term benefits, but also means years of dealing with credit-related challenges and not being the most attractive candidate to credit card issuers. It can be strange to realize that this has changed following bankruptcy and that obtaining a credit card can be more feasible than it has been in a long time. In addition to the possibility of being able to obtain a card itself, you can even begin to build your credit back up with smart credit management. Indeed, despite the fact that the average number of credit cards per U.S. consumer has declined since 2019, the fact remains that learning how to properly manage credit cards can be one of the most effective ways to maintain your new financial restoration post-bankruptcy. By adopting smart credit card habits, you can ensure that you are able to continue to enjoy the many perks that come with restored credit.
What Are Smart Credit Card Habits I Should Adopt Post-Bankruptcy?
Avoid Unnecessary Purchases
Once you have reached the other side of bankruptcy, you should make every effort to avoid ending up back in debt by paying your credit card statements in full every month. One element of controlling the amount of credit card debt that you incur is avoiding unnecessary purchases whenever possible. That means thinking twice before going on impromptu shopping sprees or otherwise undertaking actions that have not been budgeted for in your available funds.
Use Unexpected Money Wisely
One of the best ways to quickly wipe out any credit card balances is to utilize any extra lump funds that happen to come your way. Everything from work bonuses to tax refunds to money that you inherit can be used to pay off credit card balances and eliminate the possibility of them becoming problematic debts.
Maintain Your Lines of Credit
You should also maintain any lines of credit you acquire in order to effectively maintain your improved financial situation even if you don’t actually use them very much. More specifically, closing a credit account affects the amount of credit you have available and can lead to an unfavorable credit utilization percentage by making it appear that you are using a higher amount of your available credit lines. Therefore, you should keep open any credit lines even if you don’t use them regularly.
Are You Trying to Figure Out Where to Begin?
Taking steps to avoid ending up back in debt as someone who has declared bankruptcy in the past is admirable. However, it can be difficult to understand the actions you should undertake long before you reach the other side of bankruptcy and begin applying for credit cards. The support of an experienced bankruptcy attorney is essential to ensuring that your bankruptcy goes as planned and that you continue to undertake appropriate steps afterwards. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, you can entrust us to thoroughly look at your situation and guide you toward the best pathway for a better financial future. In addition to helping you understand how to begin navigating through the bankruptcy process, you can also depend on us to help you fight for the fresh start you need. Contact us today to see how we can help during a free consultation.