What are the best cards to apply for?

[ltrain823]

Hello everyone, I was confirmed a month ago and I have been living without credit for almost a year now and I think I am an expert at living the cash only lifestyle and use a very strict budgeting tool that keeps me in check.

I think I am now ready to start rebuilding my credit after carefully reading many articles on how to rebuild would be to get a credit card and pay it off completely every month.

My plans are to get a credit card and use it on all the same expenses I've been currently using it on...food, gas, etc. And then come home and literally put the cash of the value I spent aside somewhere acting as if it was already used and then deposit it into my checking before the bill is due and pay it off every month. I am very confident that I can do this consistently so wish me luck!

My question to the group is who has the best post bankruptcy options available? I'm not really looking for anything with a low interest because of my plans of how to use it...I'm really looking for the card with the lowest fees. It seems that everything I have researched has crazy fees that just seem very unreasonable! Can anyone please share with me some other options they have found.

I am also not against a secured card but I am really unsure how they work. Do they report to all the creditors? What type of fees to expect?

Thanks in advance! Good luck everyone!

[StartingOver08]

The best rates are with a credit union. They probably will require that you start off with a secured card. Ask the CU if they report to the CRA's and which one's they report to...not all of them report to all three CRA's. A CU cc has generally the best rates and the lowest, if any, fees. Good luck!

[Flamingo]

I assume from your posting in your first paragraph that you are in Chapter 13. First you may have to get permission to obtain any credit during your Plan so check with your attorney first. Secondly, I suggest starting with Orchard Bank as they are Bk friendly. I would then suggest go no further if they deny you and let things ride for a while. Washington Mutual used to be BK friendly but they have now been taken over by JPMorgan/Chase and Chase is not a happy camper when it comes to BK filers.

Department stores such as Target, Wal-Mart and Old Navy seem to be BK friendly but in this economy many former BK friendly creditors have rolled in the red carpet to anyone applying for credit.

[StartingOver08]

I disagree with Orchard Bank recommendation - they are a fee harvester card (fee's to pay online, annual fees etc, etc). But, its JMO.

[Logan]

I received a Capital One and a Juniper quickly after discharge.

[Flamingo]

I disagree with Orchard Bank recommendation - they are a fee harvester card (fee's to pay online, annual fees etc, etc). But, its JMO.

They have various fees involved but remember these cards are geared to folks with bad credit or just out of BK when there are no other options. Very few folks get a low percent credit card right out of BK or during BK with a major bank. One just has to be careful and do their homework. When I obtained my Mastercard with them just out of discharge, I was given a $500 limit, 14.99% APR with a $39 annual fee. Not bad for just out of BK. No other fees involved. Today my limit is $1800 and I plan to contact them after our chapter 13 is off our credit reports as of April 2009 (one month to go!) to see about a better card.

Note, however, when I used the card, I paid it off immediately and have never carried a balance on it. The balance now is zero. Also, many regular credit cards have fees to pay online if you have to do an emergency payment and have not lined up the payment ahead of time to be paid on time (those payments are free). My payments to Orchard Bank online are free as you can line them up months in advance.

The banks one has to watch out for if they are still around are Aspire Bank or anything that charges all sorts of fees to sign up and have an annual fee or other monthly service charges on top of that - read the paperwork before applying.

Also with Orchard Bank, do not accept any insurance or other offer they may call you about or send along. Do not sign and return any checks that may be enclosed with your statement. Avoid all that because it just will create monthly charges on your account which, if you don't pay and keep track of, can cause you to go over your limit. The more careful you are the better it is for your credit now and in the future.