Potholes to Avoid:

1. You’ve Got Credit, But You’re Not USING it! You should use the accounts each month and pay them off in full.
2. Finance Companies: Finance accounts are the only type of credit that will hurt your credit score.
3. Cosigning: It may seem like a good idea, but the additional risk cosigning ALWAYS represents isn’t worth it.
4. Balance Transfers: One of the two lenders could lower your credit limit once the transaction is completed. In addition, opening up a new account to transfer a balance ends up hitting your credit twice (new inquiry + new tradeline with a short credit history).
5. Debt Consolidation Loans: Consolidating debt frees up credit lines and often results simply…in more debt.
6. Pre-approved Offers: Consider them with caution. They are often deceptive.

1. You’ve Got Credit, But You’re Not USING it! You should use the accounts each month and pay them off in full.
2. Finance Companies: Finance accounts are the only type of credit that will hurt your credit score.
3. Cosigning: It may seem like a good idea, but the additional risk cosigning ALWAYS represents isn’t worth it.
4. Balance Transfers: One of the two lenders could lower your credit limit once the transaction is completed. In addition, opening up a new account to transfer a balance ends up hitting your credit twice (new inquiry + new tradeline with a short credit history).
5. Debt Consolidation Loans: Consolidating debt frees up credit lines and often results simply…in more debt.
6. Pre-approved Offers: Consider them with caution. They are often deceptive.

If you need additional assistance figuring out how to get back on track after you file for bankruptcy, please contact one of the experienced southern California bankruptcy attorneys at Westgate Law.