Using credit wisely is a good habit to have regardless of your financial situation. We recently discussed how using credit can turn into a vicious cycle. That is certainly true if you are starting to use credit after you have filed for bankruptcy.
We know that you are probably looking for ways to boost your credit score after you file for bankruptcy. When you are trying to find opportunities to do this, you must make sure that you are using legitimate opportunities. Generally, if an opportunity seems too good to be true, it likely is.
One tactic that companies use is to include part of the discharged debt on the balance of a new credit offer. This, however, is illegal. You have to read the fine print to determine if this is the case. We can help you go through offers if you aren't sure about what to look for. Secured credit cards without that fine print are usually a viable option when you are trying to rebuild your credit.
Payday loans, rent-to-own programs, auto title loans, predatory loans and tax refund anticipation loans are some of the other programs to avoid if you can. Instead of falling into the traps that these programs represent, you should save money so you have an emergency fund in case you have unexpected expenses.
As you venture into the land of credit opportunity after filing for bankruptcy, it is vital that you ensure you are protecting your financial future. Reading all credit offers thoroughly can help you to decide if an offer is worth taking.