Have we not learned....

[tradinglife]

People constantly posting questions like "how soon can I get a credit card, how soon can I get a 20% interst car loan, etc. Consider yourself lucky if your getting turned down. Why anyone is so worried about jumping in to the credit card biz again after BK is beyond me. All the money I spent on credit card interest, the harrassing phone calls for 2 yrs when I got behind......and finally the freedom of having no credit cards after BK....no thanks Mr. credit card company. Wouldn't be suprised that the same posters looking to get back into the credit business will be posting 2 yrs from now wanting to know how soon they can file a BK again since their credit cards are AGAIN out of control. The only credit I would be interested in would be a mortgage, and I am leaning against that at the moment....Went from having a 300k mortgage, 50k credit card debt and 2 car fleeces, never again will I overextend myself and put my family and peace of mind just to have stuff and make credit card companies rich.

[df04527]

Living within your means is the hardest thing to learn it seems.

[tradinglife]

Yep, it took me getting kicked in the head by a BK and foreclosure to learn my lession, should have listened to my grandfather who did not believe in borrowing money. I always thought he was missing out living on a farm down the end of a gravel road in a house he built himself. Now I realize he really knew what success was......I bought into the lie that success was having the biggest house on the cul de sac, I WAS WRONG! Now I am starting over at 46, this time I will do it wrong, debt free I hope!

[Flamingo]

I agree with you - however in today's world, it is almost a necessity to have a credit card to travel, rent a car or stay in a hotel. The problem is not having a credit card, it's who's pocket it is in. If used prudently and carefully, it can be an asset. Most people have never really learned to budget and when something happens like a job loss, income loss, hours cut, etc., reality hits hard. Getting a card after BK is fine but use it prudently and carefully to make oneself credit worthy again. See my signature....

[IBroke]

never again will I overextend myself and put my family and peace of mind just to have stuff and make credit card companies rich.

I don't consider it "overextending" when I get a coupe of CCs with a credit-limit of $300 and a monthly payment of $20. The cards I obtained are either secured or issued by companies (HSBC, Credit One) that will NEVER offer a CL that can get you in trouble in the first place. And no, I didn't make a $500 deposit to get a CC with a $500 CL to "have stuff".
You have to keep in mind that having a good credit score can save you money as well. Currently, I have to make higher payments on my auto-insurance due to my credit and I'm not willing to do that over the next 10 years.

[JessMN]

You also need to realize the not everyone files bk because they messed up with credit. I, for one, was screwed over by an ex who opened 16 credit cards in my name. Long story short, MY issue was trusting him when he said he would pay them back (not to mention all the other $ he owed me) instead of filing an identity theft suit (I have actually filed 2 police reports on him, but that's neither here nor there). Eventually it got so bad, I chose to file bk and start over.

So yes, I now have 2 cc's with ridiculous interest, but I PIF every month - they are solely to build credit. The only sucky thing is that I had to take out a car loan at 13.31% interest because my old car finally died. My plan is to refi ASAP on that. In the meantime I'm working my a$$ of to rebuild my credit.

I realize a lot of people file bk because they overextended themselves, but please don't assume that's the case for everyone.

[Logan]

This discussion comes up every couple of months. Credit is like alcohol. When you buy a bottle it Tequilia there is a big difference between drinking a margarita or 2 and doing multiple shots. There are people in this world that can drink one margarita and have a fun evening and there are others who want to do multiple shots and mix it with other alcohol. Credit is pretty much the same. Use it responsibly or you'll end up with a really bad hangover.

[Flamingo]

You also need to realize the not everyone files bk because they messed up with credit. I, for one, was screwed over by an ex who opened 16 credit cards in my name. Long story short, MY issue was trusting him when he said he would pay them back (not to mention all the other $ he owed me) instead of filing an identity theft suit (I have actually filed 2 police reports on him, but that's neither here nor there). Eventually it got so bad, I chose to file bk and start over.

So yes, I now have 2 cc's with ridiculous interest, but I PIF every month - they are solely to build credit. The only sucky thing is that I had to take out a car loan at 13.31% interest because my old car finally died. My plan is to refi ASAP on that. In the meantime I'm working my a$$ of to rebuild my credit.

I realize a lot of people file bk because they overextended themselves, but please don't assume that's the case for everyone.

We absolutely know that on here...in fact, most people who file BK have to do so due to overwhelming medical bills after suffering a catostrophic illness or injury. There are many reasons and those, such as yours, are tragic. The majority of filers just go crazy with credit and never really learned to budget in the first place and then something happens where they can't pay their bills - job loss, etc., as I mention above. It takes the reality of having to file a BK to set them straight and even sometimes that doesn't work. Credit can be an addiction and holds status for some. The main thing is, one cannot file bankruptcy unless one has debt so for anyone to avoid having to file, avoid too much credit and be prudent with it and plan because one never knows if they will lose their job, suffer a major illness, etc.

[tradinglife]

Debit cards work everywhere credit cards work......and if I need a $300 limit on a credit card to buy something, I probably can't afford it. Trust me, I chased American Express points and thought I was a genius at USING credit cards for years. You will not outsmart those guys. Society had brainwashed us into thinking we HAVE to have credit cards...and yes I drank the koolaid for years believing this. And people who went BK not because they overextended themselves? Thats even all the more reason not to get on the credit card train again. It's interesting, everyone else went BK beacause someone stole their credit cards or it was someone elses fault. Few people say "hey I bought too much stuff". I admit it, I did buy too much stuff. The people I know who have lived within their means usually have weathered job loss's, sickness's etc without BK, because they did not have a ton of debt. My grandfather sometimes went months without income while farming! But because he wasn't worried about paying his capital one card, he had money saved to hold him over, not a credit card. Just ranting a bit, lol!

[Logan]

Traginglife, I have 64k in available credit and owe nothing. Credit is fine if you use it responsibly. Just like alcohol.

[df04527]

This discussion comes up every couple of months. Credit is like alcohol. When you buy a bottle it Tequilia there is a big difference between drinking a margarita or 2 and doing multiple shots. There are people in this world that can drink one margarita and have a fun evening and there are others who want to do multiple shots and mix it with other alcohol. Credit is pretty much the same. Use it responsibly or you'll end up with a really bad hangover.

So very true!

[karm43]

I agree! I just never want to be in this situation again. I plan on saving when I need something. But there are times when you need a car or repair of something. I want to live again and not have to worry.

[DesdemonaB]

Tradinglife maybe you should have titled your post "What I learned" vs. "Have We Not Learned" - nobody likes to be lumped in to a type especically by a stranger, me included.

I too noticed the increase of the "I applied/was approved for XX card" posts lately, and I read them and I am soooo tempted to apply too - I view it as the yawn effect, someone in the room yawns within mintues you need to yawn. I just walk away from the yawning person, I don't chastise them for yawning or tell them they are irresponsable for yawning.

While I agree with most of what you are saying, and my grandfather lived 95 years without a checking account and lived in a house that paid for 55 years of his life; yes they live below their means - but he paid .25 cents a gallon for gas to fill his 2,500 brand new car and sent 3 kids to catholic school for 12 years, my mother's senior year high school tution was 50.00 that year. It was a "big" deal then, she had to take an after school job to help pay, can I learn from my grandparents, yes. Can I apply it today's dollar - that's where I find I need a little more help.

I understand you just want to rant, but maybe refrain from lumping anyone who has applied/re-establish/been denied credit after a BK as someone who hasn't learned their lesson. We all learned, in our own way, the second that time stamp hit our BK petitions.

Good luck with everything.

[IBroke]

......and if I need a $300 limit on a credit card to buy something, I probably can't afford it.

"To buy something"? Who made that claim?

I doubt that anybody would obtain a CC with a $300 limit to buy something that he/she couldn't afford. That just complete nonsense.

Just ranting a bit, lol!

Nothing wrong with that - but assumptive statements like the one I just quoted won't do your credibility any good.

[tradinglife]

Maybe I was a bit harsh, but I don't see how getting a $300 limit credit card from some subprime CC company will impress a lender, I would be more impressed by someone who had not jumped right back on the credit card train. As far as how our grandparents lived, yes gas was cheaper, but the average income was way less. My point was, even though I was overextended, I was doing ok until life happened (job change, income drop etc), then I had no cushion because I was spending too much to service debt. Now I have money in the bank to pay for a car repair (garages still take cash) instead of a credit card. I am making 40% less than I was 5 years ago but I am better financially already because I am stockpiling money instead of trying to see how many credit cards I can get. i have learned I don't need an American Express card or a black card or whatever they are peddling now to make me feel good about myself. Sorry but going thru bankruptcy was such a gut wrenching experience for me, I just can't imagine getting back in bed with the same people(creditors) who put me and my family thru hell the last several years