Tips for Maintaining/Rebuilding Healthy Credit to Avoid or Recover from Bankruptcy

Let’s face it, we live in a world that revolves around credit. These days, you cannot purchase a home or car, or even be hired for some jobs, without a “good” credit score.

The problem is, most of us don’t know how to properly maintain our credit to keep it “good.”

Once we’ve lost control of our credit, we may have to seek debt relief, sell off assets, face repossession and/or even look at declaring bankruptcy to help us recover.

No one wants to face any of these difficult choices.

Here are some simple tips to keep in mind when dealing with your credit either pre- or post-bankruptcy.

Practice self-discipline.

Some companies provide credit with the hope that you will be irresponsible and overextend yourself financially. This way, they can penalize you with large fees they get to pocket. The best way to approach credit self-discipline, is to limit your sources of credit and maintain them. Have between 3 to 5 credit cards, including a gas card, and use them wisely. Your ability to use these cards responsibly, along with making timely payments on your rent/mortgage, cars and other regular bills, will provide you a solid foundation from which to grow your credit.

Keep your balances low but do use your credit cards.

Remember “ashes to ashes, dust to dust. If you don’t take it out and use it, it is going to rust.” Just having credit open will do nothing for your credit score. Have a card for groceries, have a card for incidentals (car repair, maintenance, appliance replacement, etc.), have a gas card and one for entertainment (dinners, dates, movies, etc.). If you’re diligent and stick to your budget, having these credit cards will help rebuild and maintain your credit score. Over time, responsible spending and timely payments will turn into a healthy credit score.

NEVER pay off your balances on credit card accounts completely.

This may seem counterintuitive, but it will hurt you in the long run. We all know credit card companies are in business to make money. If they’re not earning interest from the “money” they have lent you, you’re no longer a valuable asset to them, and they will eventually close your account. The trick is to pay down your balance until about 5-10% remains. If your debt owed is $100.00, pay $90.00 to maintain a balance on the account, thus providing your creditor with a very small interest fee to pocket.

If you stick to a budget, limit your credit sources and practice self-discipline, you will be able to recover from or avoid bankruptcy altogether.


Reviews

Crawley Law Firm, PA

Customer Reviews

Dean J. 2/23/2021

Google
I filed for bankruptcy with Crawley Law Firm, PA and they did an outstanding job of guiding me through the process. They were with me every step of the way.

M R

Thank you very much for the generous time you gave me Friday and for the forms. I really appreciated the sincerity, understanding, and compassion you demonstrated.

Glenn H. 11/2020

Google
They treated me respectful, professionally, and did not look down on me. I'd recommend anyone to go to them. It went smooth and well.

Matt M 08/2020

Google
Michael Crawley is most helpful and very professional. He is informative and gets the job done.

M Cooper

Thank you so much for all your help! Never thought in my wildest dreams (don’t remember ever having a nightmare) that I would be having to do this. But sometimes life throws us a curve. And mine has come so late in my earthly life. I needed someone to help me feel comfortable when I really was trembling inside because I had never gone through anything like this before. Y’all have done that for me. Thanks again.

Angela

Google
I was being sued due to a car loan. Michael and his team helped explain and get me information on my best options to file bankruptcy. I am thankful for all their time and effort they put into my case.

Judy

Mr. Crawley did an excellent job helping me to get all my bills consolidated in a Ch 13 bankruptcy. I was so worried, but he was reassuring and told me not to worry. He told me that I would be out of debt in a couple of years and I could reestablish my credit at that time. I highly recommend him!

Jennifer

Google
So impressed with how knowledgeable Michael is. The office staff is wonderful and respectful. I felt confident that they had my best interests at heart and would make sure the best outcome happened. I highly recommend them to anyone!

Latonya

Google
Very good with handling your business from start to finish. No procrastinating or trying to swindle anyone out of their money. Really appreciate how this firm took care of me. Professional at it’s best.

T.

Michael makes a difficult process easy. He is professional, quick to respond and very helpful. The office staff are also very approachable and helpful.
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