After you have gone through a bankruptcy or experienced significant financial troubles, you might have been told that you need to avoid credit card debt. This may be true, especially if it was heavy credit card debt that got you into financial trouble in the first place. However, it is also important to take steps to repair your credit rating and get on solid financial ground. At The Law Office of Kim Covington, we understand that responsibly managing a credit card might be an effective credit-repair strategy for you and other Eugene residents.

However, you may have noticed that it is difficult to be approved for a credit card when your credit rating is suffering. Instead of traditional credit, you might consider getting a secured credit card. According to Bankrate, this type of credit card involves putting down cash as collateral to cover the balance if you do not make payments on the account. For this reason, it is generally easier to obtain a secured credit card, and your credit limit would be the amount you put down for the card – for example, you might save up $500 and then obtain a $500 secured credit card. Later, you can add more cash to increase your credit limit.

There are valid reasons you might need a credit card, in addition to improving your credit. Many financial institutions and vendors require that their customers have a credit card to do business. For example, most car rental agencies require a credit card. You might choose to pay all of your monthly bills at once with your card, and then pay off the balance each month. This can be an effective way to reestablish your credit, since paying your bills on time significantly impacts your credit rating.

Your credit rating may suffer after a bankruptcy, but you do not have to have bad credit forever. You may learn more about taking charge of your finances and improving your credit by visiting our page on credit card debt.