How Can Using Retail or Gas Cards Help Re-Establish Credit?

After bankruptcy, you may have to use more than one approach to re-establish credit. With any approach, the main thing is making regular payments. You are rebuilding trust with lenders and on time payment restores their trust in you, thereby rebuilding credit.

Retail cards

A retail card is not a Visa or MasterCard. These are credit cards and are harder to obtain approval for after a bankruptcy. A retail card is a department store card, such as a J.C. Penny’s, Target, Wal-Mart or Macy’s card. The best plan in using one of these cards for using these cards is to make payments.

Card ratings.com provides valuable information about retail cards and factors to guard against.

Gas cards

Gas cards are similar to retail cards in that you use them to purchase gas at specific gas stations, such as Shell, Chevron and other national brands.

The idea behind using either type of card is that they are relatively easy to obtain and your timely payments for the card show up on your credit report. Lenders look at credit reports to see how you manage payments after a bankruptcy and they weigh the credit risk for taking you on as a customer. In essence, responsible financial actions rebuild your reputation as someone who pays your bills on time.

If you are considering filing bankruptcy, it is good to know there is a way to rebuild your life afterward. Harold Shepley & Associates is a full service Pennsylvania debt relief law firm that has helped numerous people over the years deal with bankruptcy and its repercussions. The firm offers a free consultation to discuss your financial issues.

By Harold Shepley | Published August 7, 2012 | Posted in Credit | Tagged bankruptcy, credit, debt relief law firm, gas cards, retail cards | Leave a comment