Credit cards may be considered as one of the major source of overwhelming debts for many people. Sometimes the credit card debts would get too high that people would have no means to pay them unless they enroll into a program under debt management companies like Freedom Debt Relief where they may be assisted by professionals to negotiate a debt reduction and new debt repayment plan. At the same time they may also be required to go through credit counseling in order to maintain a lifestyle that is free of debts. Usually, after a stint at such agency you may find yourself with bad credit score. This is because a debt reduction or settlement may affect your credit score negatively. So you may need to rebuild your credit in order to qualify for future loans or mortgages.

One of the easiest ways to boost your credit score would be to maintain good credit cards as they can easily give you more points than simply paying your utility bills on time would. However, you may be reluctant to apply for new credit cards once you have gone through a debt management program because that was what got you into trouble in the first place. The key may be to control your spending instead of ruling out spending altogether. Moreover, you probably have damaged your credit score even more when you cancelled all your credit cards when you signed up with a debt management company so that you would not be tempted to use them at all. Of course, now you may need to apply for new credit cards so you can start rebuilding your credit rating again.

Generally your credit score may be low after a debt reduction and settlement so you may want to make sure that other areas of your financial life are in good shape prior to applying for a new credit card. Basically you may do so by maintaining an open checking or savings account in good standing so that you may improve your credit appearance. You may also pay your other bills including your utility and internet bills on time. These items may not cause a significant boost in your credit report but you may be able to build a foundation for your future financial activities. This way, even if your credit score is considerably low, credit card companies may view your credit history to see the overall picture and they may be able to see a trend of good behavior if you are current on all your bills.

It is also advisable that you avoid situations that may reflect negatively upon you and your credit situation so you may want to make sure your mortgage is current so that you may not run the risk of repossessions and foreclosures. This is because a foreclosure may affect your credit report in a big way and credit card companies may not want to risk giving a credit card to someone who may be on the verge of a foreclosure. You may also want to maintain your job for at least two years so that credit card companies may see that you have a consistent form of income when you are applying for a credit card. Of course, consistent increment in your paychecks may help a lot as well and this may only happen if you have been with a company long enough for several increments.

Applying for a credit card after going through credit counseling is not impossible. However, you may have to do more than is necessary to ensure that you remain in good standing with credit card companies so your credit card application may be approved. Once they are approved you may want to make sure that you use your credit cards to maintain good credit rating and do not abuse them.

Author Bio: freedom debt relief

Category: Finances
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