I'm looking into trying to get some credit cards for the sole purpose of rebuilding my credit after chapter 7. I've read through a lot of the posts about which credit cards are good for rebuilding credit, and it seems as though one just really has to make sure they read the fine print when getting these cards. I would like to know if anyone has had experiences with any cards which seemed to really violate what they said in their terms and conditions. It seems like some people recommend a card, then another person replies to say the card is a scam. Is it because they aren't reading the fine print regarding fees, etc., or are there really cards that are just flat-out bad?
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As to your last sentence, all cards are flat out bad as they are credit cards... :-) However, time is your friend after filing and jumping on the bandwagon trying to accumulate credit cards again just works against you as you will be denied most of the credit you apply for due to your BK and in trying to get that credit, you rack up hard inquiries on your credit reports which stay there for two years. So a creditor will see you are recently discharged from a BK and have numerous inquiries for credit on your credit reports...not a good thing. It will take you several years to get your credit back on track; it is not done overnight. Start first with seeing if you can obtain a card through Orchard Bank or a secured card through various other banks (Orchard is very BK friendly). If approved then let things go for a while and prove yourself creditworthy again by paying all bills on time and not being late and gradually get yourself back on your feet credit-wise._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket" -
I'm definitely not trying to get credit cards to use credit per se. I just want a few cards to report to the agencies that I pay them on time, because that seems to be the way to rebuild your credit score. A VP at the bank recommended trying to do that ASAP, as accounts with more history will help my score more.
Some people say Orchard is a good secured card to get, but then others say the fees are too high. But are they really charging hidden fees, or are they up front with them and maybe people just aren't paying attention? I guess it's just a little confusing trying to sort out everyone's opinions. I don't mind paying a reasonable fee, but also don't want to pay a fee for a card that won't regularly report my timely payments, or won't let me convert to non-secured with the same account # eventually.Comment
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Its simple really, just read the terms and conditions of the card before you apply for it then you know what you are getting yourself into with each card.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..Comment
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This is a recurring theme here, and quite possibly true -- but not always!Originally posted by Flamingo View Post
I'm recovering from a Chapter 13 discharged in January. I closed an FHA mortgage in March, bought a GMAC-financed (GMAC was crammed down in my filing) car @ 7.94% interest in August, and have been approved for three unsecured credit cards, with only a single denial. (By the way, I'm done for now and perhaps all eternity -- I have the 4-5 trade lines considered 'optimal', divided between installment and revolving, and all unsecured with moderate credit limits which I don't approach anyway).
The biggest mistake I find many making is not taking on credit, but attempting to PIF each credit account monthly. If you pay before the reporting date, your charges did you absolutely NO GOOD, since the creditor reports a $0 balance -- as if the card was NEVER USED! You don't help your credit history/FICO score this way. It's very important to find out when your creditor reports to the CRAs! You WANT them to report a low-utilization balance, even if you then pay it off completely AFTER they report! If you can't discover the reporting date, bite the bullet and pay the minimum finance fee monthly in order to carry a small balance. If you are reported as owing nothing month after month, it's the same as having NO CREDIT.
Now, run up big balances again, and you're right back in the BK rat race -- EXCEPT you can't file again for X many years! Don't be THAT stupid!Comment
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You needed to finish the portion of the quote you took from my original post in that it is not obtaining the credit card that is harmful if you are approved, it is the number of inquiries trying to do so (in the event of denials which will occur) that can work against you as they stay on there dated for two years. So if you are right past discharge and apply for several credit accounts in a several month period, all that works against you. And also a BK stays on your reports for 7 - 10 years and sometimes that is all a creditor has to see and they will not proceed any further and deny an application immediately.Originally posted by oldhack View Post_________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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Check this out... sounds like the perfect card for those with less than perfect credit scores.
I think the loan shark would be proud of these people!All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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