Just got approved for Cap1 CC!

[jennordhavn]

This is inaccurate.

Most companies still report cards with $0 balances monthly with "Pays As Agreed" notation.

It will build positive history just fine without use -- as long as it doesn't eventually get closed by the issuer for inactivity.

It is also helpful for utilization purposes!

[LSUTiger32]

Well said Amy26. I'm reminded of that one kid in kindergarten that always went ape-s*** whenever all the other kids didn't do things the same way.

At any rate, this forum is big enough for all viewpoints. LSU is perfectly within their rights to post in this sub-forum, but one wonders about the need to make the same point time and time again.

So now I am a kindergartener. Nice. Anymore name calling you guys want to throw out here? I never would have imagined people would be willing to call other people names because they can't live without a credit card. Who knew?

I make yet another apology to anyone I was rude to, offended, was snide to, acted like a kindergarter towards or whatever other names I have been called.

[Amy26]

LSU, I wasn't directing my post to things that *I* myself have necessarily said but for the collective "everyone". I accepted your apology for what you said to me. I also believe what I said in my post was constructive critisism.

[CCsAreEvil]

So how is having a $1800 open trade line that you will never helping your credit. You show no history of using it and paying so it is worthless. If you have it, you have the ability to go into debt. If you are not going to use, what is the point?

Regardless of what it effects, the only way to get a FICO score and improve it is to use debt. The FICO score is made up of debt age, debt amount, debt utilization and the amount of times you apply for debt. Nothing else goes into the score except debt.

As someone else stated, some issuers will report "Pay as agreed" even though the balance stays zero. However, it's been shown that having a "very small" balance (< 10% of CL) will increase your FICO score. You can still pay your full balance monthly and possibly show < 10% utilization (without paying any interest). It depends on when each specific lender reports the "current" balance on that account.

You are right that FICO score is pretty much "debt history usage/payment/lines" history. Yeah, we don't want our FICO scores to be on our tombstones. However, since most of us still plan to live a few years (or longer then we must do what's financially best for each of us. If you (personally) will never obtain a credit card for the rest of your life, fine. I don't think anyone here is forcing you to. Heck, that's awesome if you can get away with it. If you have save thousands and live on cash, good for you.

However, there are advantages to having credit lines. This may not be in 100% of all circumstances. But most people do have several types of insurance, some plan to own homes, and some may rent. Most places do check credit! So, we must "join" the system but maximize our financial portfolio. This does NOT mean you must go into debt. Use the system to your advantage.

I see that you are saying that everyone will fall into temptation if they have an open credit line and go crazy at some point. You know what? I'm sure there will a few that do that. At my 341, there was a couple that was doing their 2nd BK barely after 8 years form the last one! But there will be a good percentage who have actually "learned" from their mistakes after BK. Sounds tough to accept, but yeah.

Maybe you just can't trust yourself if you obtain credit lines?

[whipster1]

So how is having a $1800 open trade line that you will never helping your credit. You show no history of using it and paying so it is worthless. If you have it, you have the ability to go into debt. If you are not going to use, what is the point?

Regardless of what it effects, the only way to get a FICO score and improve it is to use debt. The FICO score is made up of debt age, debt amount, debt utilization and the amount of times you apply for debt. Nothing else goes into the score except debt.

Available credit is absolutely part of FICO scoring. How do you think utilization is determined?

[Amy26]

Yes payment history, length of credit, how much you use, total limit, inqueries, amount of debt... its all apart of the score.

[BobMango]

So now I am a kindergartener. Nice. Anymore name calling you guys want to throw out here? I never would have imagined people would be willing to call other people names because they can't live without a credit card. Who knew?

I make yet another apology to anyone I was rude to, offended, was snide to, acted like a kindergarter towards or whatever other names I have been called.

For the record, I did not call you a kindergartner, I said I was reminded of a kindergartner. Perhaps the analogy is a bit extreme, but that's really what this reminds me of.

Seriously, people have legitimate reasons for using credit cards to rebuild their credit. You seem unable to comprehend or accept this. I can see your point of view and agree that it's a perfectly reasonable to avoid all debt after filing. More power to you.

I'm in a position where I might need to sell my house and relocate in 2-3 years. I would like to ensure that my credit rating is as healthy as possible when the time comes. Toward that end I am working on establishing multiple credit lines, including a credit card, and handling them appropriately. Why does that send you over the edge?

[sadandconfus]

Just applied for Capital one. got approved. My scores were 585-657-561. Can someone tell me why one of my discharged credit card, keeps showing a balance date every month even after it shows "iib". should i dispute this item?

[backtoschool]

Just applied for Capital one. got approved. My scores were 585-657-561. Can someone tell me why one of my discharged credit card, keeps showing a balance date every month even after it shows "iib". should i dispute this item?

You should definitely dispute any IIb item that show a balance owed. The balance will lower your credit score.

[tanya0525]

HSBC and Orchard denied me in a blink of an eye and I never BKed them...

Orchard, HSBC, and Cap 1 denied due to Bankruptcy.

[lovebirds]

El wrongo. It MAY but it does not automatically.

My homeowners insurance: Never went up, but already insane due to living in Louisiana
My auto insurance: Went down.
My job: They don't care.
Business loans: HUH? Seriously? Were you going to get one anyway on the verge of BK?
Utility deposits: Most people should already have utilities and if you have a good history with them they aren't likely to care about a BK. Is getting a credit card today going to change your utility deposit today?

I mean all these misconceptions about needing credit are amazing. Does anyone actually look at their situation or does everyone just read this stuff and freak out?

I've recently found out that in Louisiana, auto insurance rates can be lowered by the company due to bankruptcy or medical events. Also, I don't think credit scores are used in the homeowner insurance (and mine is super expensive also ). Don't you love being in one of the poorest states with the highest insurance rates?

[Amy26]

Actually my insurance rates went up because of my bankruptcy. In my state... they use credit scores for almost everything.

But on a positive note... I FINALLY GOT A CAPITAL ONE CARD! After being denied like 3 times after my bankruptcy they finally approved me! And with a 1k limit... woo!

So, I'm excited... I will now stop applying and let my credit gel for a while. I have 3 credit cards with decent limits and that's all I need. My hooters is 1.1k, cap 1 for 1k and my hsbc best buy master card for 500. I got approved for a credit one card as well but I'm going to call and cancel it... the terms are crazy.

[tanya0525]

Orchard, HSBC, and Cap 1 denied due to Bankruptcy.

Just got approved today for Capital One $500 limit. 0% interest till March 2011. Woot Woot!!!!!!!!!

[prettyobk]

My Cap 1 has a $300 limit. I have no idea what my scores are as of today because the weird thing is, from three different sites, I got three different sets of score. :irked:

Now I have 2 post BK cards. I applied for a Macy's card and I'm still waiting to hear from them. I used to have cards with them but I didn't BK them so we'll see.


And as for the LSU person's comments, people who went there tend to think they know everything. Yeah, right.

[StartingOver08]

My Cap 1 has a $300 limit. I have no idea what my scores are as of today because the weird thing is, from three different sites, I got three different sets of score. :irked:....

It is completely normal to get different scores from different sites. Each of the sites 'sell' you a score based on their own formula. The score most commonly used by lenders is the FICO score. As consumers, we can see the consumer version of FICO from the myFICO site but only two of the three scores. And each of those scores are different because there may be different information on each of your reports AND they use a different forumla to calculate your score. Experian won't even use that scoring model anymore, they have their own score from their own model they sell. No one has the exact same score for each of the three main CRA's.

The other scores on other sites are not FICO scores. They are using a different scoring model and even have a different range of scores. Those scores are not worth the money you pay to see them since they have no mathmatical relationship to the FICO score.

The whole point of scoring to begin with was to measure risk to the lender. Now they have turned the entire system into a revenue generating system for the CRA's...