I Don't Want Any Credit Cards!

[BankruptinNJ]

I was starting to get "pre-selected" credit card offers and I made a decision: I don't want them! I know that I am a shopaholic and I will only get into trouble.

I thought that I wanted a secured card to rebuild my credit and did apply online for the Public Bank secured one a few months ago and am probably the only person in history not automatically approved by them. Why? They couldn't confirm my identity! I used a P.O. Box throughout my bankruptcy and none of my creditors know my current address and it's not on my credit report. They kept sending me emails begging me to confirm my identity so that I could get their card and complete my application, but at that point I wasn't even paying a utility bill so I couldn't prove anything.

I decided to ask my boyfriend to change the name on the electricity bill so that I could start paying it and start my rebuilding journey. I planned to apply to Public Bank again -- and then I read that they were taken over by the FDIC! I realized that it was a sign -- I was lucky that I wasn't approved because what would have happened then? I was delighted! Then I realized that I don't want any credit cards!

So I went to https://www.optoutprescreen.com/?rf=t and took myself off the lists for five years! I could have chosen the "permanent" option but that was a little extreme.

I did learn one thing when I did this. There are other credit bureaus besides the Big Three (the website mentions "Innovis" and I think there is at least one more).

It works, too. I haven't received a single offer since I did this. Of course the car dealerships are still sending their offers but I made my shredder happy with those.

I just figured that it was a waste of time for the credit card companies to send me these offers since I don't want one! Why waste their time and mine?

Besides, my credit report is such a mess (accurate, but a mess). After all, all of my debts are listed at least twice (first from the original creditor plus the collection agencies). I just want to see them drop off. My credit report goes on for many pages. All because I couldn't stop shopping.

The only credit report that tells me when the bad tradelines go off my report is Trans Union. According to them, my first ones will drop off in January 2013. I will have nine tradelines dropped by the middle of 2014.

Not owing any debts besides my rent, electric bill, and gym membership is a beautiful thing. I do pay the electric bill on the same day I receive it to get a good reputation for paying my bills. My boyfriend pays the cable/internet bill.

We are also planning to go through the entire month of November without eating out at fast food restaurants and Starbucks! Believe me, we love eating out! We are trying to train ourselves to be more disciplined. (My boyfriend has had no credit cards for years). Fast food is totally unnecessary and fattening and ultimately quite expensive! We plan to put the money we don't spend in a piggy bank and use it for a new winter coat (for him -- his is ten years old), and new snow boots (for me -- mine are a wreck).

I don't have a car -- I don't want one -- cars are too expensive to maintain. I share my boyfriend's car and it works very well.

I do intend to check my credit report every year for discrepancies but right now I'm enjoying being credit free!

[mountanddo]

Sounds like you are on the right track. Good luck!

[TrainWreak]

No cards for me either! Like someone on here says "It's a snake in the pocket"
Maybe it's our own little Occupy Wall Street.

[BankruptinNJ]

Yes, I agree with both of you! I don't want to pad the pockets of banks any longer. I'm not saying that I will NEVER get a credit card, but I don't want one now!

[LSUTiger32]

Good job! Two years post discharge here and no card wanted or obtained. My credit score (approaching 700 now) is doing just fine without one. Don't let people tell you that you need one, cause you don't.

[mountanddo]

Good job! Two years post discharge here and no card wanted or obtained. My credit score (approaching 700 now) is doing just fine without one. Don't let people tell you that you need one, cause you don't.

So how do you rebuild your credit without one?

[BankruptinNJ]

Good job! Two years post discharge here and no card wanted or obtained. My credit score (approaching 700 now) is doing just fine without one. Don't let people tell you that you need one, cause you don't.

I'm just so afraid that I'll go haywire with shopping again. Also, my current income is very low (I'm trying to start a new business).

My only problem in my above post was about not eating out during November and putting that money in a piggy bank. After that freak snowstorm last Saturday, we were without electricity for several days. All the food in the fridge had to be thrown out We had no choice but to eat out for a few days until the electricity came back on. We did buy some non-perishables, but got rather sick of eating granola bars and things like that! Thankfully, things are back to normal and we are slowly replenishing our food in our fridge. At least we got the fridge defrosted!

[BankruptinNJ]

So how do you rebuild your credit without one?

Right now I'm not really trying to rebuild my credit. I'm just waiting for some of the old junk to fall off my credit report. I have at least 20 negative items on my report (the original creditors plus the collection agencies plus a judgment plus the bankruptcy). According to TransUnion, at least nine items will have fallen off in three years. I'm sick of seeing a credit report with so many pages! I was crazed while I was shopping away a few years ago. I needed a shopping intervention.

If you're trying to "rebuild" your credit, however, you might have to go in a different direction. I'm just curious to see what happens to my credit score without doing anything. I will probably get a secured card in a couple of years. I don't trust myself with a regular card. I do want to rebuild my credit eventually, just not now.

[LSUTiger32]

So how do you rebuild your credit without one?

Preferably you don't. I haven't. Time heals your score, you don't need a credit card to do that. I figure letting them run over me and hold me hostage once in my life was enough. There are other ways to improve your score and show credit worthiness. Sadly, it's a necessary evil in this world to have a stupid FICO score if you want to buy a house, so I do understand the need to work on it. If only banks had enough common sense to look at what you own, not what you owe.

[IBroke]

It is NOT possible to achieve the highest score without any credit card. You don't need a CC to rebuild your credit - that is true. But once you want to achieve the highest score, the system leaves you no choice. Without a CC, an important part (about 30%) of your score is missing.

The "feeding the bank" theories aren't 100% accurate, either. You can obtain a secured card with a $200-balance from your local CU and pay it off every month. I have my doubts that this will be expensive and since it's secured, you are no "slave". If you know how the scoring-system works, you can take full advantage of it. That's why a $200 limit is just as good as a $20,000 limit. Some think "the higher, the better for my score" - but they are simply wrong.

I know for sure that I prefer a small, secured CC over a higher rate on - let's say - my car-insurance. To me, it doesn't make a difference if I'm getting robbed by a bank or by an insurance. What I can do, however, is do my best that I don't lose more money than necessary. And that's why you need a CC in the long run. That's America and that's the system. You either stick to the rules or are penalized - one way or the other.

[BankruptinNJ]

It is NOT possible to achieve the highest score without any credit card. You don't need a CC to rebuild your credit - that is true. But once you want to achieve the highest score, the system leaves you no choice. Without a CC, an important part (about 30%) of your score is missing.

The "feeding the bank" theories aren't 100% accurate, either. You can obtain a secured card with a $200-balance from your local CU and pay it off every month. I have my doubts that this will be expensive and since it's secured, you are no "slave". If you know how the scoring-system works, you can take full advantage of it. That's why a $200 limit is just as good as a $20,000 limit. Some think "the higher, the better for my score" - but they are simply wrong.

I know for sure that I prefer a small, secured CC over a higher rate on - let's say - my car-insurance. To me, it doesn't make a difference if I'm getting robbed by a bank or by an insurance. What I can do, however, is do my best that I don't lose more money than necessary. And that's why you need a CC in the long run. That's America and that's the system. You either stick to the rules or are penalized - one way or the other.

My problem is that I'm a severe shopaholic. So no credit cards for me until I can control myself. I'm working on it. I'm really not interested in "building" my credit right now. I'd rather save my money in a savings account.

Unfortunately the part in my first post about not eating out during the entire month of November didn't work out. After the freak October snowstorm we were without power for almost a week. I've never seen so many trees destroyed (many of them are still on streets waiting for pickup).

All of the food in our fridge was ruined and we couldn't cook anything anyway with no electricity. We did try to survive on granola bars, but eventually we had to eat out until we got the electricity back. I don't want to eat another granola bar for a long time. We also had to restock the fridge so there went all the money in the "piggy bank" (see my first post in this thread).

But I guess that it proves that you do need to save money for that rainy day -- or freak snowstorms!

[mountanddo]

My problem is that I'm a severe shopaholic. So no credit cards for me until I can control myself. I'm working on it. I'm really not interested in "building" my credit right now. I'd rather save my money in a savings account.

Unfortunately the part in my first post about not eating out during the entire month of November didn't work out. After the freak October snowstorm we were without power for almost a week. I've never seen so many trees destroyed (many of them are still on streets waiting for pickup).

All of the food in our fridge was ruined and we couldn't cook anything anyway with no electricity. We did try to survive on granola bars, but eventually we had to eat out until we got the electricity back. I don't want to eat another granola bar for a long time. We also had to restock the fridge so there went all the money in the "piggy bank" (see my first post in this thread).

But I guess that it proves that you do need to save money for that rainy day -- or freak snowstorms!

I'm concerned that you are a year out of BK and it sounds like you still don't have a handle on your finances. Is it really because you are a shopaholic or is the income just not there to support you?

[Logan]

Preferably you don't. I haven't. Time heals your score, you don't need a credit card to do that. I figure letting them run over me and hold me hostage once in my life was enough. There are other ways to improve your score and show credit worthiness. Sadly, it's a necessary evil in this world to have a stupid FICO score if you want to buy a house, so I do understand the need to work on it. If only banks had enough common sense to look at what you own, not what you owe.

The only way they run all over you and hold you hostage is if you don't pay them. There is absolutely noting wrong with using credit cards. I repeat, there is absolutely nothing wrong with using credit cards.

PS...I just went shopping at Target for some Christmas gifts and got 5% off for using my Target credit card.

[Logan]

My problem is that I'm a severe shopaholic. So no credit cards for me until I can control myself. I'm working on it. I'm really not interested in "building" my credit right now. I'd rather save my money in a savings account.

Unfortunately the part in my first post about not eating out during the entire month of November didn't work out. After the freak October snowstorm we were without power for almost a week. I've never seen so many trees destroyed (many of them are still on streets waiting for pickup).

All of the food in our fridge was ruined and we couldn't cook anything anyway with no electricity. We did try to survive on granola bars, but eventually we had to eat out until we got the electricity back. I don't want to eat another granola bar for a long time. We also had to restock the fridge so there went all the money in the "piggy bank" (see my first post in this thread).

But I guess that it proves that you do need to save money for that rainy day -- or freak snowstorms!

I got hit by the same snowstorm but we have a generator since this happens where I live every year.
Certainly cost alot of people money. The guy who snowplows my driveway actually showed up--I was pissed because it cost me $25 for a plow I didn't need. He was just out taking advantage of all of his customers.

[mountanddo]

The only way they run all over you and hold you hostage is if you don't pay them. There is absolutely noting wrong with using credit cards. I repeat, there is absolutely nothing wrong with using credit cards.

PS...I just went shopping at Target for some Christmas gifts and got 5% off for using my Target credit card.

5% off for using your Target card is not worth it. They charge huge interest rates. I'd rather build my credit with a secured card with better interest rates. Of course the interest rate doesn't matter as long as you pay if off in full each month, which we all should be doing.