Building Your Credit

As the recommended artcle, "Personal Bankruptcy: What You Should Know," points out, choosing to file bankruptcy is a financial not a moral choice.  People encounter times in their lives when their personal finances can take a turn for the worse.  Bankruptcy offers ways of easing the burden of heavy debt and making it so these people can have a new financial start.  Once this happens, they have to start from scratch and build back up their credit.

Whether coming off a personal bankruptcy or just beginning to establish your credit, there are ways you can secure a credit card and build your credit.  Most everyone from rental car companies, airlines, and Internet purchases require that you have a credit card.  After bankruptcy, one of the few ways you can get a credit card is to buy one.  This is done by paying the credit company an amount, such as $500, and in exchange they issue you a credit card with a $500 limit.  In time you build up your credit by making purchases on the card, and after a period of time, the credit card company refunds your deposit, and you have a regular credit card with usually a higher credit limit.

Another way of securing a credit card and building up your credit is by opening up a checking account with a bank, such as Washington Mutual, where you receive free checking along with a debit card that can also be used as a credit card.  The card is directly tied to your bank account, and as you make credit purchases, the money to cover the purchase comes out of your checking account.  Each time you use the card, it helps to build up your credit.