This next thing has to be done the right way for it to effective. This is opening new credit. There are creditors that will give you a new credit card. There are three catches you may have to be aware of. They may charge you a lot of interest. Now many people will say that’s okay, because they will avoid paying interest by paying the balance in full each month. If they make a large charge that they can’t pay off each month, they will start paying interest.

Catch number two is that although people can get a secured credit card, they will have to put up cash to secure a card. Here is a simple example. If you get a credit card with a credit line of $500, you may have to put up $250 to $500 to obtain that card. The third catch is that a credit card issuer may want to only issue a credit card with a limit of $300 to $500.

The next thing you need to consider is why you want to establish new credit. Without much thought, you might say because I don’t want to have bad credit again. I am asking you to consider what goals or aspirations you are trying to accomplish. By doing this, you are not just haphazardly getting credit.

The last thing you may want to consider is getting a credit monitoring program. They will usually cost between 15 to $25 a month. A good monitoring company will notify you if someone is trying use your credit. Next time we will talk about another destroyer of credit. This one is the effect that paying late can have on your credit. If you want more details about what to do after bankruptcy, call me at 313-744-5977 or e-mail me at [email protected].