In a country where almost all consumers have little or no credit or loans, there are plenty of people in the world that are desperate to re-establish their credit. The advice to do this is to apply for a loan, borrow a little money, pay it back, and then have a great big lump sum paid out to you. Yet, there is an equally awful lot of people who are struggling to get re-established credit. Many people don’t even know this.
I explain now why I see the need to have good credit. As much as credit is vital, credit is often the only means out of the many sources of financing for most people in today’s financial economy. Without credit, interest rates, penalties, and increases in interest rates are often the result of many people’s overuse of credit.
So, let’s talk about good credit. Let’s talk about how credit could come into play if you could obtain it. Let’s talk about how bad credit could also mean a reduction in your monthly income or income in the event of a bankruptcy. Oh, how we got out of bankruptcy, right? Well, according to some that is all’we really needed to know.
We can do that, right? Well, not what we want. The reason for this is that if we had access to the resources needed to obtain a credit check (on good credit) right now, we could get ourselves out of debt. With a credit check, if our credit rating is bad, if we could then obtain a low interest rate credit line. Let’s face it – there are some people out there who will fall prey to this type of banking scam. So, if you keep a look around, you will likely see numerous scams coming up all the time there to scam you – but it’s all about credit without a doubt!
So to help us get out of this mess we shall have a number of options. One of the most common options that you will have to have is a secured credit card already. There are credit cards, as well as home equity loans, and will have credit lines up to 100,000,000, but these are used for the very purpose of obtaining credit. A secured credit card has the same purpose, however you’re encouraged to carry over the balance, which the credit card or homeowner pays each month.
Another option against a bad credit rating is a store credit card. We’re talking about multiple accounts, so the amount of credit needed would be minimal, if at all possible.
So it may seem odd, but we see the use of credit cards being considered now, right? Not quite. This is where the danger lies. All of us love to be able to afford some low monthly payment – so, the thought of paying a lot more than we earn, is not quite as exciting if we lose sight of our primary source of income – the credit card. We are encouraged to pay more than we earn. So, the consumer of credit cards is, quite literally, gaining – back strength.
Now, while bad credit may seem to cause your credit card debt to cease to decline (a great idea), it’s not for everyone (we really should be talking about that now), so that’s another article in here. If you are looking for a way to get back on your feet again, it’s not your first try! Here are a few useful tips on how to get back to good credit after bankruptcy.
1. Look For Credit Cards With Low Interest or Introductory Offers
If you qualify for one, you can qualify for a lot of credit. Although you may not qualify for all, you’ll soon find out that you are worthy. One thing you can take into account is the interest rates that will usually be stipulated during your credit evaluation. The very first thing you should look for is the interest rate of the company to be evaluated with. If you are in the market for a 0% credit card and you have seen nothing but bad credit offers, then one with a very high interest rate may be a good landing spot for you.
Another thing you can look for is a low interest or Annual Percentage Rate for the first year of getting your new credit card, if this is the case. Once you have received your new credit card, choose the one that has a rewards program or a frequent flier miles program and work on obtaining that credit card. Do not be surprised when the interest rate will jump up.
2. Have A Checklist Of Unsecured Credit Cards
One of the most common reasons given for bankruptcy is a credit card secured by an instrument such as the overdraft facility. There are so many ways to get credit today that obtaining a card is actually quite simple – unless you truly, truly have everything in mind about your future.