It may not seem logical, but getting a credit card after your Arizona bankruptcy can be one of the easiest ways to help repair your credit. While it may feel like dangerous territory to enter so soon after emerging from bankruptcy, a credit card that you use cautiously and pay off religiously can help give your credit the boost it needs after the hit it just took.
Many people are tempted to use prepaid cards in an effort to curb spending, but the problem is that these cards have little to no effect on your credit score. One of the best options for a person looking for a safe way to build credit via a credit card is a secured credit card. A secured credit card has a cash deposit collateral, and your available credit limit equals your deposit amount. You are still required to make all payments, as your collateral is not an account, and the issuing institution will report your payment activity to credit bureaus.
By keeping your credit balance as low as possible (think only about one tenth of your available credit) and paying it off fully each month, you will begin to establish a pattern of credit responsibility that credit bureaus will take note of. After a few months, you should start to see a steady improvement in your credit score.
If you are nearing the end of your bankruptcy case—or even considering filing for bankruptcy but have questions about what exactly you are getting into—there is no sense in going it alone. Call the Phoenix bankruptcy attorneys of Curry, Pearson & Wooten today at 602-258-1000 to discuss your options and opportunities both during and after bankruptcy.