secured credit cards.

[bigtim6656]

One option i have been looking at for rebuilding my credit post discharge is a secured credit card. I think this might be a good option for me then most as because just after i plan on fileing i will be getting my student loan. Here is my idea.

I plan to file around spet 24th to oct 10th depending on when i get my first half of my student loan. I used my fileing money for my books so i am taking it from my loans.
I get after the end of sept to the first week of oct. Then i will get the other. from oct 28th to nov 10th. Each will be around 2500. My first will be all but gone for filing. I thought about taking my second half of my loan and getting one maybe two secured credit cards for say 1000 each or one for 2000.
HEre my question will it help my credit more the higher my secured card is. What i mean is a 2000 card better then a 300 card. My worry is i have the money spent on bills and school stuff. SO if i get a 2000 card i will be running it up somewhere around 1500 to 1800 for bills and school. Is that ok. I do not want it to look bad on me because i am near the limit. the other option is i can do the 2k and just use it for my reaccuring monthly bills. Around 1500 a month and pay them off every month. I guest i end up in the same area monthly then with my loan. Just not sure how much i need on each card or do i just need one card.

[lrprn]

I hate to pop the balloon here, but you haven't even filed yet and you're worried about getting credit again already. This is not the time to be worrying about your post-filing credit scores.

Bankruptcy can teach all of us very important lessons about money management and more sensible ways to think about credit. It isn't sensible to be planning to jump right back into the credit game after just escaping the credit noose.

If your bankruptcy came about because of events you couldn't control (illness, job loss, divorce, etc), that's one thing. But if it came about because you didn't manage your money well (and according to the "Why Did You File BK?" poll here, that's the majority of us in the forum), then angling to get credit again right after discharge for any reason is like a recovering alcoholic saying, "I can take just one drink and be ok." Maybe so, but the odds are greatly against it.

Take the time to learn how to live within what you make consistently for at least 6-12 months after filing. Your credit score will take care of itself over time as you continue to make on-time payments after filing. That's the only way to truly cure a low credit score after filing. One secured cc just isn't going to do it, plus it opens up a potential Pandora's box of finding yourself right back in bankruptcy before eight years passes so you can file Ch 7 again (or four years to file Ch 13 if that's possible).

Be smart. Step back. Learn to live without unsecured credit before carefully introducing it back into your finances (if you ever do). You'll be glad you did.

[zscfan]

I'm 30 years old, just got discharged on Friday, and for the first time since I was 18, I am living on a cash only basis. It is truly an incredible feeling and I have never felt more free, despite the fact I can't necessarily afford everything I want.

Not to say that I am not interested in rebuilding credit; I would like to buy a house someday. But for now, I am just enjoying my breathing space.

[bigtim6656]

My reason for filing is not due to mis managing my money. I had a failed business that caused about 80% of my debt. I want a card or a loan to build my credit rate to buy a house between 3 to 5 years down the line not get money. I have always lived on cash and my debt cards all i want is something i can pay my monthly bills with and pay off every month but also something that will build my credit. When i get out of college i want to be working for my self not someone else. and i will not be building homes without a high credit rating.

I hate to pop the balloon here, but you haven't even filed yet and you're worried about getting credit again already. This is not the time to be worrying about your post-filing credit scores.

Bankruptcy can teach all of us very important lessons about money management and more sensible ways to think about credit. It isn't sensible to be planning to jump right back into the credit game after just escaping the credit noose.

If your bankruptcy came about because of events you couldn't control (illness, job loss, divorce, etc), that's one thing. But if it came about because you didn't manage your money well (and according to the "Why Did You File BK?" poll here, that's the majority of us in the forum), then angling to get credit again right after discharge for any reason is like a recovering alcoholic saying, "I can take just one drink and be ok." Maybe so, but the odds are greatly against it.

Take the time to learn how to live within what you make consistently for at least 6-12 months after filing. Your credit score will take care of itself over time as you continue to make on-time payments after filing. That's the only way to truly cure a low credit score after filing. One secured cc just isn't going to do it, plus it opens up a potential Pandora's box of finding yourself right back in bankruptcy before eight years passes so you can file Ch 7 again (or four years to file Ch 13 if that's possible).

Be smart. Step back. Learn to live without unsecured credit before carefully introducing it back into your finances (if you ever do). You'll be glad you did.