Is it right to get CC immediately out of BK

[gophermn]

Ok, I like thousands want to do two things following BK.
1. Have a comfortable debt to income ratio.
2. Begin re-building credit.

I have been on this site for some time and I notice some apply hours out of BK for credit cards and others (like me), wait a year or two. I pulled my reports 3 months out of BK and had everything repaired and sitting around mid 600's. I have been using the scenario that I WILL NOT get a CC as I will be determined and patient using my Debit card which also acts like a VISA (pending I have funds in the checking acct).

Some in here freak out when others apply and get approved CC immediately out of BK. Why? Is there a golden rule between CC companies and the three credit reporting agencies of the BEST TIME to apply. Or is it personal preference and, well, if I am not going to get one right away, others shouldn't as well.

Again, just trying to understand why there is such mixed emotion out there.

[AngelinaCatHub]

Well if you are asking me (I know you are. LOL) you are asking the wrong person. After bk, I found we were still bouncing some checks as DW would write some and I used the VISA bank card. Solution, ran out of checks and I refuse to order anymore. A money order pre-paid, cost .45 cents, an NSF fee $35.00.

As you see the pic in my signature, I have an intense feeling for the critters. Most of C7’s here are in the form of buying junk you WANT and mortgaging your future, the junk quits working before the cc is paid then hits the landfill. Nope, my credit was 820 about the best you can get, and I just don’t even care to look at my credit report so I have no idea of what it is now. Reason? I’m not going to use any. If my money runs out, the card does not work. I carry a $100 bill (that does not exist in my mind, but does in my wallet) for emergencies like we just charged our meal and it was declined, then I may just pull the bill out and avoid the problem of washing dishes for the day. If I get stuck on the road it is insurance. But I have never needed it or used it, it does not exist as temptation to me. Try it, you’ll like it. ‘Hub

[Logan]

A big reason to get CC's is to have reestablished credit for a home purchase. The lender I am going to use for a home purchase later this year wants to see 4 accounts from major banks. There are alternatives but when you're applying for a home loan soon after a BK you want to make things as easy as possible for an approval.

Logan

[AngelinaCatHub]

A big reason to get CC's is to have reestablished credit for a home purchase. The lender I am going to use for a home purchase later this year wants to see 4 accounts from major banks. There are alternatives but when you're applying for a home loan soon after a BK you want to make things as easy as possible for an approval.

Logan

[hopejones]

Both my hubbie & I got a credit card a few weeks after CH7 discharge because we plan on purchasing a home in a few years.

[hopejones]

Thanks for the link 'Hub. I need all the savvy money tips I can get.

[mgmadara]

We waited 2 years post discharge to clean up our credit reports and 3 years post filing to apply for credit cards. We already own a home and had 2 cars that were still in good working order so we were in no hurry to rebuild our credit. Our bank still reports our mortgage payments to the credit agencies, I have some student loans that are also reporting, and we had a Lowe's card that survived the bankruptcy so we were able to do some rebuilding without getting more cards. I wouldn't have gotten cards at all but we will be in the market for another car soon so I felt that it was time for us to add another credit card to our trade line. Even 3 years post filing I was terrified at the idea of having cards again but it hasn't been a problem. My mindset has changed over the years and if we don't have the cash available to pay the credit card bills in full, we don't use them.

I'm definitely in favor of waiting awhile after bankruptcy to get cards because it is important to get used to living on a cash only basis. However, I realize that not everybody is in the position we were with a house and 2 good cars and no real need to rebuild quickly. I also realize that there are people who filed that never had a problem with credit cards in the first place. I don't think there is a "best time" to apply for cards, I think it depends on each person's circumstances. For us, waiting was the right thing to do.

[Logan]

I agree, if you can't pay off your credit cards every month then you shouldn't be using them.

Logan

[tkharvey]

I'm with you "Hub". We are in the process of filing, trying to get rid of over 147K in CC. Don't even ask me how it happened. NEVER again will I have a CC. Debit cards or cash is the only way to go. I haven't used a CC in almost four months. Strange to get used to, but am totally changing my spending and it feels great!

[Intoodeep80]

I'm with you "Hub". We are in the process of filing, trying to get rid of over 147K in CC. Don't even ask me how it happened. NEVER again will I have a CC. Debit cards or cash is the only way to go. I haven't used a CC in almost four months. Strange to get used to, but am totally changing my spending and it feels great!

And you plan on rebuilding your credit how....?

[krielly]

You ever heard the expression, guns don't kill people, people kill people?

Well........

Credit cards don't get people into debt..... People get themselves into credit card debt.

Seriously, though.... I don't think there is a right or wrong answer here. It really depends on your own personal situation. Chances are, YOU know if its a good idea better than anyone here would....

If you were an alcoholic, I wouldn't suggest you go to a bar
If you're a gambler, I wouldn't recommend you go to a casino.....
If you're a chargeaholic....... you probably shouldn't get a cc.

K

[GoFigure]

One month after my CH 7 was discharged, I went out and got one of those horrible visa cards with the huge fees.

I also worked on cleaning up my credit report.

Today I have $48,000 available credit on my credit lines. I owe out never more then $100 which I allow to appear on my credit reports. I pay off my credit cards every month PRIOR to the statement closing.

One year after my discharge my mom added me onto her citibank card as an AU and that really helped my scores. After about a year I had myself removed as it served its purpose.

Although my BK is still on my credit report I do not have any problems getting new credit. The big banks like BofA, Wells, and Citi are not BK friendly so I avoid those banks.

In 7/08 Wells Fargo issued me a PRIME RATE mortgage for 30 years as a conventional loan. So I guess you just never know.

[gophermn]

Wow awesome posts and excellent info!!