Leveraging credit cards to rebuild your credit

Filing for bankruptcy in Louisiana will affect your credit score, but only temporarily. While many people would have you believe otherwise, bankruptcy is not as detrimental to your credit standing as it may seem.

Utilizing your options for rebuilding your credit and leveraging opportunities the right way can expedite your efforts to establish trust with creditors once more.

Using your credit card

Credit cards can provide convenience and flexibility for your spending. They also are a valuable resource to use when rebuilding your credit score. However, you must understand the proper way to incorporate their use into your spending to prevent worsening your situation.

According to INC., one of the most important things to do is to pay your bills on time. Commit to not spend more than the cash you have available. Experts recommend that you never max out your credit cards and suggest keeping your spending below 50 percent of your allotted credit limit. Over time and with consistent payments, you can demonstrate your trustworthiness and request an increase to your credit limit. Each of these strategies can support your effort to rebuild your credit score.

Overcoming misconceptions

Many people have a false perspective of life after bankruptcy. While your credit may drop a bit, establishing new money management habits can eventually correct that. Bankruptcy means the chance to remove the stress and uncertainty of unpaid debt and replace it with hope and a fresh start. Seeing bankruptcy for what it is, an opportunity, will enable you to move forward with anticipation and motivation for your future.

If you would like to learn more about navigating life after bankruptcy, please visit our webpage.