Focusing on credit cards after bankruptcy might sound odd. After all, isn’t that what got you in trouble in the first place? However, hear us out. We think that credit can indeed be a good thing as long as the mind has shifted. If you assume that credit is a bad thing, then you’re going to automatically move away from it. But what about the good things that credit can get you? If you’re dreaming about owning your own home someday, you’re going to have to get over your fear of credit. You’re going to have to embrace it. Lenders need to realize that you’re a good credit risk again. If all they have to look at is your bankruptcy, then you’re in trouble!
What we need to do is get fresh credit, fresh financing instead of dwelling on the bankruptcy. Keep in mind that these steps need to be taken only after your bankruptcy has fully discharged. This means that you get the “fresh start” and your debts have been dismissed.
Getting secured credit cards might not be your cup of tea, but it’s possible to get them quickly. When it comes to getting a fresh start, you really do need to go with something that can be obtained very quickly. You want to get secured credit cards for another reason: it makes the lender realize that you’re serious. When you are showing how serious you are, it helps to put your own money on the table. A secured credit card is “secured” by the money that you place on it. Many credit card companies even allow you to set your “credit limit” based on your deposit. So if you’re in the UK trying to start over, you’ll find that you can get a secured card with a limit of 1,000 GBP if you’re willing to put up 1,000 GBP of your own money. This might not work out for people that haven’t gotten their savings back into place, but if you have the money set aside, why not put it to good use?
It’s very important to make sure that you are paying every signal credit card on time every single month. If you know that you’re not going to be able to handle your obligations, you need to let the credit card company know as soon as possible. Remember that after you get out of bankruptcy, you will not be allowed to seek that type of debt relief again. This means that you will have to be on your best behavior far more than someone that can still declare bankruptcy.
You have to also prove to lenders that you’re not the same type of debtor that you were before the bankruptcy proceedings. You need to show them that you can actually handle credit.
If you have mentally shifted since the bankruptcy, this will be easy. You have to realize that keeping credit in line is very important. The best creditholders aren’t wildly spending — they are controlled in everything that they do. You need to make sure that you are staying focused on your goals. Not sure how to fit everything together? You need to write your goals down. Don’t be afraid to talk with a financial adviser to figure out where you need to go next. If you are low income, you may find free adviser resources through the building society, or you can get questions answered by the Citizens Advice Bureau. It’s up to you — you have all of the power within you to turn your life around. Good luck!