Coping from a business or personal bankruptcy is traumatic enough but you need to move on after such an incident. You need to recover soon enough and you had to start rebuilding your image especially with credit companies. Start with choosing your credit card.
As soon as you managed to start recuperating from a dismal loss in finances and begin looking for a good credit card, consider these important tips in the selection so you may not fall again into bad debt management.
Things to Consider When Choosing a Credit Card
In choosing what credit card suits you best, you had to take a review of your spending and charging habits.
- Do you want to earn rewards?
- Do you pay in full or revolve your balances?
- Are you establishing or reestablishing credits?
Choosing your credit card depends on how you plan to use it. But be sure to choose a credit with the lowest interest rate especially when you had this habit of carrying over a balance from month to month. Here’s one important thing you should know: Even if you pay the required minimum monthly payment, still your balance for the month will accrue interest for that month based on your daily balance. So if you continue with your habit of putting off your payment for next month, so you will not be banned for using your card, your interest will accrue another interest without you knowing it, until such time that you will be surprised to find out how big that interest will be.
If you intend to use your credit account as often as you want, choose a card that gives rewards or rebates. But with this, be sure that you are a good payer in order to enjoy these benefits. However, remember that it’s always best to pay in full every month to avoid an accumulation of interest on your credit card.
In case you are recovering from bankruptcy or foreclosure, or if you have no credit history, choose a secured credit card. With this, you will be asked to provide a security deposit, so make sure that you have some savings before opening a secured credit account.
If you’re on multiple credits and wants to consolidate all your balances on one credit card, choose the balance transfer credit that offers 0% APR for 12-18 months so you can have a long time paying off your debts.
Lastly, if you are a traveler, secure an airline credit card. Airlines are strict on their patronage requirements. They always expect you on a single carrier.
Managing Your Credit Standing
Once you receive your credit card, this is the time when you take full responsibility in managing your credits. Be guided accordingly on all the guidelines and rules that your card carries. If you are not clear on some matters, try making research or ask your credit provider. When it comes to finances, you must learn to give full attention to details for they count a lot in your every move. Never neglect a single detail or you may later find yourself in a quandary over those little things. Lastly, avoid impulsive buying and always pay full for your monthly balance.