Credit Card Strategies After Your Texas Bankruptcy

It might sound like the most counter intuitive move ever, but many people are signing up for a credit card immediately after a Texas bankruptcy. While they might not realize it, people who exercise good money management with their new credit cards are rebuilding their financial profile. However, using a card to repair credit scores after a Texas bankruptcy is more difficult than it may sound. By keeping the goal of an improved credit score in mind, you’ll be able to get a new credit card without worrying about former financial troubles.

Use Your Texas Bankruptcy to Move Forward

Most people who file for bankruptcy only do so once in their lifetime. The financial lessons learned truly help people learn how to manage their finances and credit and avoid previous mistakes. Unfortunately, delinquent debts can make the terms of a new credit card less than ideal with high interest rates and burdensome annual fees. However, there are still many cards and lenders that are perfect options for those trying to rebuild credit.

One such option is an unsecured credit card. Unlike secured cards, unsecured credit cards do not require collateral to receive credit. In turn, lenders can issue wage garnishments to collect any unpaid debts. An unsecured credit card is a powerful tool for those recovering from a Texas bankruptcy to regain their financial strength. On the other hand, if you have the cash available, a secured credit card is a safe way to rebuilt credit as well. Secured cards require that you give the bank money equaling the amount of your credit limit.

Other considerations include:

· Choosing a lender that reports monthly. By choosing a credit card lender that reports monthly to the three major credit agencies, you’re ensuring that your new money management skills are being used to repair your score. This way your score is as up-to-date as possible.
· Be mathematical. Try to use no more than 15 percent of your available credit at a time. Furthermore, once you do have outstanding debt, pay it off as quickly as possible on a monthly basis.

Remember, the sooner you rebuild your credit, the sooner you can afford major purchases such as a car or new mortgage!