CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Five Things to Avoid If You are Rebuilding Credit After Bankruptcy

Five Things to Avoid If You are Rebuilding Credit After Bankruptcy

Congratulations! You have made your way through bankruptcy and are ready to begin your new financial life. Or… you are contemplating bankruptcy and you want to know what steps to take in the future to avoid the financial struggles you face now. Now matter where you are in your bankruptcy journey, there are a few things to avoid if you want to get your credit score back into shape.

Getting a New Phone

If you are one of the millions of people who use a cell phone exclusively to communicate, you will want to stick with whatever carrier and phone you currently have, even if it means some inconvenience. And if you were thinking about making the switch to cellular, now is not the time. Most cell phone companies pull your credit report when you apply to do business with them and this type of hard inquiry affects your credit report in a negative way. The damage is relatively mild, so if you have no other option it’s not the end of the world. However, if you can postpone your new phone, do so until your credit is in better condition.

Renting a Vehicle with a Debit Card

If you are in need of a rental car, your situation might be a bit of a challenge financially. Many rental companies do allow you to rent with a debit card, but when they do so they run a credit check. Again, credit check damage your credit score. If possible use a credit card to rent your vehicle. It might require some research, but you could also find a company that does not run a credit check when you use your debit card.

Failing to Use Your Credit Cards

If you have begun moving forward after your bankruptcy and have applied for a credit card, it is important for you to use it. Ideally, you will use your card for small purchases and pay off the balance each month. This helps you rebuild credit. By not using your card, you run the risk of the credit card company closing your account due to inactivity. This does not cause serious harm, but every point of improvement helps you.

Disputing a Charge on Your Credit Card Bill

This is a tough one because if there is a mistake on your bill you want it corrected, right? Unfortunately, a dispute can cause this available credit to not show, creating a lower score. This is not a long-term problem. If you need to dispute a charge, make sure you remedy the problem long before you need your credit score to provide an accurate reflection of your current situation.

For more information on your rights as a consumer and how to dispute charges on your bills, visit the Federal Trade Commission website.

Financing Large Purchases

As mentioned above, it is important to use credit in small chunks to build your score. What you should not do is finance a large purchase. Many retailers offer great deals when you finance, but these deals create more harm than good in the long run. You could end up paying more for the item and it affects your credit. In most cases, you are approved for the amount of the item, which means the moment you make the purchase you have maxed out a line of credit. This counts against you when your credit score is calculated.

Closing Old Credit Card Accounts

Closing old accounts might seem smart, but it reduces the amount of available credit you have. You shouldn’t have a dozen cards open, but you should keep the oldest of your cards open and use it responsibly on occasion. View your oldest card as a credit asset that can help you rebuild your score.

Recovering from bankruptcy can be challenging, but it is possible to have a bright financial future after you have filed. The important thing is to make the right choices starting now, from the moment you begin the bankruptcy process. And remember, when you are rebuilding credit, every single point in your favor counts.

If you have questions about bankruptcy or you need assistance getting things in order for the future, contact the Law Offices of Robert M. Geller at 813.254.5696 to speak with someone about debt collection and money management.

Tampa Bankruptcy Law Blog

What’s the Scariest Thing about Bankruptcy?

What’s the Scariest Thing about Bankruptcy?

Managing Fear In Bankruptcy Filing for bankruptcy can be scary, but not nearly as scary as dealing with overwhelming debt...
Read More
Does a Trust Protect Assets in Bankruptcy?

Does a Trust Protect Assets in Bankruptcy?

Trusts and Bankruptcy Trusts are popular in the asset protection industry and many promote them as a way to remove...
Read More
How Do You Know if a Creditor is Violating a Bankruptcy Discharge?

How Do You Know if a Creditor is Violating a Bankruptcy Discharge?

Creditor violations of debt discharge in bankruptcy Filing for bankruptcy offers a variety of benefits, the most important of which...
Read More
Three Secrets to Securing Chapter 13 Success

Three Secrets to Securing Chapter 13 Success

Finding Success Filing Chapter 13 Bankruptcy Chapter 13 bankruptcy is a valuable tool that allows you to manage debt without...
Read More
How Bankruptcy Can Change Your Life

How Bankruptcy Can Change Your Life

Bankruptcy is not Magic Alleviating financial distress by filing for bankruptcy can seem like life-changing magic. Bankruptcy can change your...
Read More
What You Need to Know about Reaffirming a Loan

What You Need to Know about Reaffirming a Loan

Reaffirmation of Loans There are a lot of decisions to be made in bankruptcy. One of these decisions is whether...
Read More
Steps to Filing a Chapter 13 Bankruptcy [Infographic]

Steps to Filing a Chapter 13 Bankruptcy [Infographic]

Filing Chapter 13 Bankruptcy Meet with your attorney to evaluate the case. Determine the length of the plan and monthly...
Read More
Why Bankruptcy Warnings Might Not Be Valid

Why Bankruptcy Warnings Might Not Be Valid

Are Bankruptcy Warnings for Real? Simply Google the term “bankruptcy” and you’ll get a slew of information, much of it...
Read More
Debt Resolution, Surprising Facts about Bankruptcy

Debt Resolution, Surprising Facts about Bankruptcy

On the August 9, 2019 episode of Tampa Home Talk, Tampa Bankruptcy Lawyer, Robert Geller joined to show to answer...
Read More
Should You Be Afraid of Bankruptcy?

Should You Be Afraid of Bankruptcy?

Bankruptcy has a bad reputation. People do all they can to avoid filing and even those who have never considered...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay OnlineBankruptcy Courses

comodoavvo1avvo2avvo3LEA

Tampa Office

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405


Tampa Bankruptcy Lawyers Map

St. Petersburg Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: (727) 532-3939


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.