How to Use Credit Intelligently After Bankruptcy

Bankruptcy may wipe away your debt, but it comes with a price. It stays on your credit report for a very long time. Here are some of the ways that you can begin to repair your credit after filing for bankruptcy:

Rent-to-Own

Rent-to-Own companies charge up to four times the book value of a given product over the course of a contract. The longer you wait to pay them off in full, the more expensive the product is. So the advantage is that if you keep up with the payments, it improves your credit score.

Tax Refund Loans

Ask your bank to issue you a tax refund anticipation loan. These are very short-term loans that usually come with extremely high interest rates. The day you get your refund check in the mail, turn it over. It looks good on your credit report.

Don’t Settle

Payday loans can run up to 1000% APR. This is an effective, albeit expensive credit-building tactic. Use a payday loan as a last resort. Apply for a loan through your bank first. Never borrow more than a tenth of what’s in your bank account. Pay it in full within the time allotted, as quickly as possible.

Scrutinize Credit Offers

Do your homework. What may seem like a simple fix with one institution, could find you paying double of what you would for a small credit line with another. Don’t let a salesman decide your course. You will not hurt his feelings if you tell him you’ll ‘think about it.’

Live Within Your Means

An instant cash loan will solve your cash flow problems. Lenders are there to make money on your inability to stay within your means. If you don’t think you can pay an instant cash loan back on time, don’t take it out.

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get a no fax payday cash advance when they need it. Kimmy has over 20+ years’ experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy has a number of pets including cats, birds, and a Chinese water dragon.

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