Rebuilding Credit Post Pandemic

[Attie2]

Well here we are folks. Originally filed a Chapter 13 with only a 36 month timeline. I made it all the way through to 2021 when my car with 226,ooo miles on it finally died. Unfortunately, I ended up converting to a Chapter 7 at that time. I was so mad as I was just a few struggle months away from finishing the Chapter 13. I was unable to get financed at the time due to all the hokey-pokey going on with the pandemic and them not wanting to work with me under the pandemic parameters, even though my business never really closed. So, the little money I had saved up went into a used car. That means no credit rebuilding coming out of the bankruptcy.

My credit score slowly has been rising or stagnate the past several years. It recently took a 10 point drop? I looked at my report and there seems to be some old accounts that fell off. So I would assume less history? I also noticed US Bank doesn't seem to be reporting my mortgage? Anyway, I have avoided credit cards like the plague. I figured it was time to try to get one. Capital One approved me on the spot which was surprising, but the interest rate is nearly 30%!

I put the card in my wallet and mentally know I need to use it, but I have to admit ...I am scared to death. I think I have a serious case of Bankruptcy PTSD. This morning I went to get a new battery for my phone and intended to pay for it with this card. I couldn't do it. I ended up using my debit card.

The more I think about 'credit and lending' score stuff, it just makes me angry. I know why all this has to happen, but it makes me mad that someone basically living within their means has to have all these credit cards etc.

Just came jumped on here to vent with people who might understand.

[shipo]

A few comments:

• Congratulations on working through your rebuild.
• An interest rate of nearly 30% is pretty typical in this day and age, both of my CapOne cards are nearly that high as well and my TDBank and Chase cards are only a point or two lower.
• I wouldn't worry about using a credit card to pay for anything you A) need, and B) have the money to pay cash for. With discipline, you can use your credit cards as an asset; make sure they are all "Rewards" cards and pay them in full each month; not only will you not pay any interest, you'll get cash back as well.

[Attie2]

Thanks for the reply shipo. Yes, the card I was able to get gives the 1.5% cash back. I just found the emotional baggage from the Bankruptcy and Chapter 13 process is much bigger than I even realized. Maybe that is a good thing, but right now it I feel like it is in the way too.

Interest rates are crazy high for everyone. It is a realization of life right now. The economic channels talk about how many people are finding they have to carry over cc debt month to month. The only reason I need the card is to improve my credit score, especially since the bank is not reporting my mtg loan. Boy, if I missed a payment I bet they'd hop on reporting it real fast. LOL.

[shipo]

I've had my 1.5% Quicksilver card for just over 2 years now and that card has been used for roughly a third of my monthly CC spend; so far it has paid me over $600 in cash rewards against not a penny in interest.

[Carmella]

Attie2 You are not alone. I have a Ollo Credit Card that has nearly 30% interest. I don't want to use it and have procrastinated using it.

I have used it only a few times. I ended up charging something and paying it off in full. I paid for our snow blower and now the property taxes. I used it two other times, but now I can't remember for what, but generally larger purchases and only one purchase per billing period (but not every billing period). And I still don't like using it at all.

Use it for something you can pay off right away.

I don't like the way this credit system works where you have to have debt to prove you are credit worthy.