When an individual gets into a serious accident or incurs a large sum of medical bills from an illness, it can be hard to repay the debts before the hospital turns the debts over to a collection agency. Once the debts are at a collection agency, they are placed as line items on that individual’s credit report.

In this day and age, just about every facet of life is connected to your creditworthiness. It’s not just about buying a home or car anymore. Employers check credit reports to see if you are trustworthy. Insurance companies tie premiums to your credit rating. Even landlords check credit ratings to see if you pay your bills on time. Establishing credit helps you get the best deals of life’s big purchases.

If you need a credit card but have a poor credit history, don’t despair — bad credit credit cards are available that can meet most needs and this is not common knowledge. No doubt you have had people tell you that if you have bad credit, no lender will touch you but this is not the case for most people. As long as you have the income to repay the debt, lenders will usually be prepared to loan to you.

It may sound like the stupidest financial move ever: getting credit cards after bankruptcy. But done right, it may be one of the smartest moves you can make for your credit. The main purpose for getting new credit cards after bankruptcy is to help boost your credit scores, which most likely took a hit when you filed.

Building and maintaining an excellent credit score helps consumers save money when they need to obtain a loan. The higher your credit score, the more lenders are willing to give you a lower interest rate, which means consumers can save additional money down the road.