Starting to get a little depressed... any tips??

[crazytown]

I know, I know...this whole thing takes time. But, I could use some pointers or some encouragment to keep things in perspective.
Stats:
Discharged about a year ago.

Have a $350 secured Capital One card
Have a $300 Orchard Bank that just switched to Capital One.
Auto Loan through my credit union at 8.99% only about $8,000 remaining
Student loan of about $5000 still in deferrment as I'm still taking classes
A mortgage that made it through BK.
I make decent $, same job for many years
No lates since BK, credit reports all reviewed and cleaned up.


Recently I tried to apply for another card. This might have been dumb but I tried the Chase Freedom since Credit Karma told me I had "very good" approval odds...DECLINED
Applied for Care credit for about $1500 for some minor uncovered work...DECLINED


Any suggestions? I would like another card or another type of tradeline. I guess I took "perfect" credit for granted all these years and when my whole BK situation came around I never could have been prepared for how this feels. I fell like a LOSER. I can't believe I only have a $300 unsecured card. I guess I shouldn't care because I don't really charge much anyway but I DO mind. I used to have tens of thousands of dollars accessible if I needed it. Now I have $300 in case of emergency. Ok, done whining...

[LadyInTheRed]

The size of your credit lines are no indication of your value as a person. You are feeling exactly how huge banks want you to feel. They have engrained in society that huge credit lines and high credit scores make you a better person. Rise above their B.S. You don't need the troubles those credit lines can cause. Don't let the banks pull you back into their trap.

You have very little debt and a stable, well paying job! Hold your head high!

All that said, give it another year and I bet getting credit will get easier. Resist applying for more cards for a while so that you don't have a lot of inquiries on your reports within a short time period. Use the cards you have every month for small purchases, but keep the balances to 10% of the available credit. Pay off the entire balance every month.

Build a savings. That is much more valuable than a credit line.

[crazytown]

Thank you so much for your post. It really lifted my spirits and was exactly what I needed. You're right, why would I really want the trouble that high credit lines have brought me in the past?
And you're 100% right I need to devote money to savings instead. Much smarter move, and brings me more security as well.

[ValleYum]

LadyintheRed said it perfectly!!

I almost danced this month when were able to pay our truck off almost a year early - Frees up $425 per month that can go into savings or be put on our car. If we use the $$ from our old truck payment, we now want to get the car paid off by New Years to eliminate another $400 payment.

Also - before applying again research who the bank is behind the credit you are applying for. For instance, Care Credit is backed by GE Money Bank and so is the Old Navy store card. Did you discharge anything from them (GEMB)? Kohls just moved all of their cards to be backed by Capital One.

Big banks (Chase, BOA, etc.) are usually tough to get for the first several years after your discharge. Local credit unions may be a good choice to try if you have an account with one.

There is a forum member that had in her signature line something to the effect of: "My credit score won't be on my tombstone". They were so right. No one who is your true friend cares that you filed bankruptcy or what your credit score is. Besides - you have all of us here!!! Take care.

[Pjmax]

Well gosh, all that made me feel good too! Seriously, it did.

[justbroke]

LadyintheRed ... powerful statement right there. Social engineering at its worth; making you think that your credit score or credit line defines you.

It is difficult to get major credit cards from major banks right out of bankruptcy. Only the second tier creditors will grant you credit. The Care Credit (medical card) is one of the most difficult to get; I believe they deny anyone with BK appearing in their credit profile (period).

Alas, don't chase credit. Also, on those $300 cards, you should not have more than $30-90 at MOST ever on those cards. The utilization will kill you (and your score). Also, credit unions are more favorable once you are allowed to become a member. (Yes some CUs are difficult and credit driven, but many are generally standing and debt/income driven.)

Trust me, in another year and sparingly using the "small" credit lines (and never letting them report more than 10-30% at MOST), will help you. You need 6 months of continuously being under 30% (10% is better) and your score could improve 30 points. Additionally, I can personally tell you that at the 2 year mark, I'm almost back to where I was 6 months before filing bankruptcy.


BTW, why didn't you ask your credit union for an unsecured card? Especially if you have equity in the car. I must also add that you should still be careful with obtaining cards and revolving lots of debt.

[pamkev]

Totally agree Red it was having that high credit that got us in trouble don't want to see that happen ever again

[Bell30656]

Chase is a tough one to get. It is actually my primary bank but I don't have their credit card. When filling out the online application they actually have somewhere a statement about credit history free from bankruptcy. That's where I left the application.

[BankruptinNJ]

I know, I know...this whole thing takes time. But, I could use some pointers or some encouragment to keep things in perspective.
Stats:
Discharged about a year ago.

Have a $350 secured Capital One card
Have a $300 Orchard Bank that just switched to Capital One.
Auto Loan through my credit union at 8.99% only about $8,000 remaining
Student loan of about $5000 still in deferrment as I'm still taking classes
A mortgage that made it through BK.
I make decent $, same job for many years
No lates since BK, credit reports all reviewed and cleaned up.


Recently I tried to apply for another card. This might have been dumb but I tried the Chase Freedom since Credit Karma told me I had "very good" approval odds...DECLINED
Applied for Care credit for about $1500 for some minor uncovered work...DECLINED


Any suggestions? I would like another card or another type of tradeline. I guess I took "perfect" credit for granted all these years and when my whole BK situation came around I never could have been prepared for how this feels. I fell like a LOSER. I can't believe I only have a $300 unsecured card. I guess I shouldn't care because I don't really charge much anyway but I DO mind. I used to have tens of thousands of dollars accessible if I needed it. Now I have $300 in case of emergency. Ok, done whining...

You don't need anymore credit! Especially with a deferred student loan! With your two credit cards, auto loan, student loan, and mortgage, that is plenty!

Always remember that you could lose your job at anytime.

Finish school, pay off your student loans and auto loan, and keep your current credit perfect. As LadyInRed said, build savings.

You're doing a great job so far!

[Sammie]

Coming here and reading your responses to posts just makes my day a little bit easier and I can smile, than you for that.sammie

[JohnnyQ1980]

I can tell you what's worse: Doing the same things that got you into BK in the first place. I did just that and if not for the tenacity of my SO I would be putting myself in much greater risk. I got a Capital One unsecured card with a 1000 limit a year after my Ch7 then a Barclay with a 1500 just recently. I also was able to get a huge loan(Well, huge to me now: $9000) against my 403b which I was "paying" and current. I say "paying" because I was using the funds from the loan to pay the loan: Oops. Being the dumbass I was, I also managed to max out my cards. The worst part is that I was keeping this a secret from my girlfriend who, God bless her, kept an eye on our budget as well as she could after my BK. All my stupid habits from the past came to bite me in the aaaaish and I had to confess to her what I did because we recently had an enormous car repair bill and a tax bill to pay. So we had to redo the budget so we could live life and pay everything off.

Talk about a "LOOOSER." If it wasn't for her good credit, respectable pay and her budgeting skills we would be in a huge mess because of me. Luckily she caught me before things really went south e.g. I was going to miss a payment on the 403b loan which would have put it in default and the WHOLE thing would be immediately due. So, understandably, I am in a credit "doghouse" but it isn't so bad. I feel like a recovering alcoholic that fell off the wagon and she is my sponsor bringing me back to soberness.

I too had excellent credit and access to thousands and thousands of dollars. But, think about it. People like us are much better off without that big juicy piece of candy dangled in front of us. I mean, I had those thousands available and I used every dollar of them. The banks loved it while I was paying all that interest and cash advance fees. I was perfect right up to the point where I couldn't pay them back. So, give it time and be damn sure you really need credit before you apply. I for one will try to life an honest CASH life from now on.

[SMinGA2]

Contact Capital One and see about increasing your secured credit card if you want/need a higher credit limit.

Chase, Bank of America, Citi, Discover, Amex, etc. are prime banks and likely would turn down a 4-5 year old bankruptcy. Expanding your relationship with your credit union is a good idea - and perhaps then you could get rid of Orchard since it probably has a $39-79 annual fee.

[overthedebt2]

The size of your credit lines are no indication of your value as a person. You are feeling exactly how huge banks want you to feel. They have engrained in society that huge credit lines and high credit scores make you a better person. Rise above their B.S. You don't need the troubles those credit lines can cause. Don't let the banks pull you back into their trap.


Build a savings. That is much more valuable than a credit line.

Not to hijack this thread, but I have to say it is support like your's (any many others here), that really saved me during the Ch 7 process. Like many of us, I thought that I was somehow "less" of a person if I defaulted and filed. Once I separated myself from those feelings and realized this was a business decision, I began my road to financial freedom. If I never found these forums, I probably would have continued burning my money chasing minimums that were getting me nowhere. I finally let go of the feeling that my credit score mirrored who I was as a person. So, THANK YOU to everyone here for the selfless support you have given to all of us.

[AngelinaCat]

Thank you for your kind words. We are so glad you found us.

[LadyInTheRed]

Yes, thank you for your kind words and your welcome. And I will reiterate your thank you to all who were here before me. I stumbled across BKforum when trying to figure out what to do about my mortgage when the introductory interest only period ended and a drop in value prevented me from refinancing as I originally planned. BK never occurred to me until I found this site and realized that my biggest problem was my huge credit card debt. Helping others who are starting out in the process is my way of giving back. I think that's true of many long time members.