Applying for a new card after filing BK in 2005

[Sanctum1972]

Hello,

I filed Chapter 7 way back in 2005 and then lost my place for a while until I found a new apartment. In 2010, I got a secured credit card from a local credit union which the card got closed down during the time my old part time job at the print shop was docking my hours, making it difficult to pay it off. The bank closed the account last summer once my secured money was used to pay it off. However, the savings account is still there, but barely.

I also have a Banana Repub card to get clothes and strictly for that reason. This was acquired several months after I got the credit union card (now defunct). That card is still good. Then I got the Barclaycard because I had no choice but to get funding for my new computer and tablet for my line of work in graphic design.

However, I left my old job because the workplace was getting unstable and getting to the point where the way it was operated, got real stupid. The former boss claimed that he had no more funding to continue my position so I left. BUT I caught him, over a month later, putting an ad on Craigslist looking for a new designer. Such a backstabbing fool.

So, I struck on my own going freelance once again and being on disability because of my deafness, I have tried once again to apply for a Capital One card after geting so many junk mail from them.

I got turned down, ironically. Now my question to you is how in the heck am I going to get a new credit card while working freelance or under disability? I'm not making much these days from my creative work but I have a plan now that I know what to do. How do I apply in the form where it asks me of my annual salary? What am I supposed to enter in there if I'm on disability or my freelance work? Do I combine both of those incomes or just one?

I get the feeling that this part is how they determine my eligibility to get a new card even though my credit score is pretty good around the range of the mid 600s. I need to get a new card to stabilize my budget and financially get around so I can get gas, food and necessities. That's all I care about without squeezing my bank account. The barclaycard is a huge challenge now because I have to pay off almost $3K on it and this card is strictly for computer equipment and I also had to use it to get new glasses for my astigmatism where I had no insurance to cover it, thanks to the stupid former job that did'nt have any benefits.

Thanks!

[LadyInTheRed]

To answer your question, you include the total of your disability income and freelance income.

But, I suggest you do without a credit card. You are on a road right back to bankruptcy. You already say the Barclay card is a challenge. Why add to that challenge? A credit card is not a way to stabilize your budget. Your budget should be based on your income, not your available credit. Focus on figuring out how to increase your income or decrease your living expenses, not on applying for credit.

Mid 600s is not a good credit rating. It's fair at best.

[AngelinaCat]

You aren't going to like this, but why are you trying for a new credit card?

Did you NOT learn anything from your 2005 BK?

I read what you are saying in your last paragraph that you need a card because: I need to get a new card to stabilize my budget and financially get around so I can get gas, food and necessities. That's all I care about without squeezing my bank account.

How about tightening up your belt a bit and learning to live on a 'cash only' basis? And learn to save up for your 'wants'?

We were discharged in August 2008, and have not had a credit card since before we filed in 2007. It has been hard, and I still wish I had a 'charge card' so I could go to a restaurant now and again and not worry about what we order, but no. We are learning. And it IS painful.

[pamkev]

I agree 100 percent with LIR and Cat sounds like you headed right back where you were in 2005 if you don't start living on a cash only lifestyle.

Pam

[Sanctum1972]

You aren't going to like this, but why are you trying for a new credit card?

Did you NOT learn anything from your 2005 BK?

I read what you are saying in your last paragraph that you need a card because: I need to get a new card to stabilize my budget and financially get around so I can get gas, food and necessities. That's all I care about without squeezing my bank account.

How about tightening up your belt a bit and learning to live on a 'cash only' basis? And learn to save up for your 'wants'?

We were discharged in August 2008, and have not had a credit card since before we filed in 2007. It has been hard, and I still wish I had a 'charge card' so I could go to a restaurant now and again and not worry about what we order, but no. We are learning. And it IS painful.

Angelina,

I do understand what you're trying to say here, but I've been very disciplined in how many CCs I have in my possession since 2006. I filed for BK in Spring of 2006 and got discharged that Fall later on. I want to make a correction here that it was'nt 2005 but 2006 when I filed for BK.

Between 2005 and 2007, I dumped them. After getting out of homelessness and getting this apartment which is subsidized, I've only had about 3 credit cards now. One was for clothes only with a $300 limit. Barclaycard was strictly for my digital needs for my creative work and I had no choice but to get a new computer to replace the old one while working on a game project for a colleaque. He did pay me well for the project at the time. And the third card was a secured credit card from the credit union with a $250 limit.

I never asked for anything more than $500 in credit which I did'nt need. Anything less than $500 was fine with me because it forces me to weigh in the necessities without going overboard. I had to get new glasses and was unable to get funding for it, so I had to use the Barclaycard to do it due to my astigmatism. Now I'm only down to 2 credit cards and one bank card. That's it.

I pay out of my pocket for my hearing aid batteries, food, gas, and other bills from my checking account. While living in a subsidized apartment can be a limitation that any income I make, the landlord takes 1/3rd of my income to rent. The more income I make, the higher the rent goes. And this is where my previous job became erratic with less hours. At first, I was making good money holding down payments about two years ago, but then the owner of that print shop started reducing my hours. I had hoped to get some valuable in-house design skills and grow from there, but ultimately it turned out to be the wrong job that vocational rehab placed me in. And it was the only print shop in this small college town I live in. The creative industry here sucks, seriously. I lived in Ohio all my life but moved to VT several years ago (long story).

Back to the print shop, two years later in 2012, my hours continued to linger in low amounts around 10 hours a week. I was the only designer whereas the crew consisted of the owner and two other older ladies manning the shop (production/assembly and marketing). Last spring, I tried to pay off the secured credit card ($250) limit but his docking my hours made it very hard to pay it off and the bank used my savings to pay it off and close the account. I used that card because last winter was a difficult time of dealing with my driver's ID renewal, license plates and other necessary evils. I left the job because I got sick of his ineptness and unprofessionalism. He said that he did'nt have enough funding to keep me onboard so I smelled a rat and decided to resign. Over a month later, he hired a young married woman to replace me.

The largest city was an hour away and I used to live there but can't move there until I find a way to save up, but that is limited due to the subsidized nature of my apartment.

I pay internet and my smartphone (which is under a deaf data only plan by Sprint) and I rely on them greatly for communications needs. Internet access at home is required for my videophone (government subsidized) so that, specifically, deaf people can reach me on video conferencing and I don't pay a dime for it. I don't have cable tv nor a phone line as I've no need for them. I pay car insurance as well and that monthly Barclaycard. Barclay is the only CC bill I have now. I'm trying very hard NOT to touch that card again. I also pay for my domain name and website for keep an online portfolio and presence which is the only way I can get clients to see my work or add new pieces there.

For now, I work freelance so I can keep my rent low as possible since Disability is the only income I have. I'm looking into sites like Society 6 or Threadless now so I can sell my creative work and earn extra income. I never heard of them until recently and this may help increase my earnings. But it's not a guarantee, though. I've already had book cover illustrations made in the past and gotten paid for it.

The local job economy around here is crap and unreliable.

If only I had just one new card just for gas/food, it would make it easier for me to get around.

[LadyInTheRed]

So, you are unwilling to increase your traceable income because you want to make under the table money to keep your rent on your subsidized housing low? Meanwhile, you want to rely on credit cards to pay your living expenses because your under the table income is not sufficient for support. It seems obvious, but you do realize that even if you have to pay 1/3 of any income increase to your rent, you still have increased income to pay your other living expenses.

It is your attititude, not your subsidized apartment, that hinders your ability to save or earn more income. Go back to vocational rehab and ask for another placement. If there are no creative jobs, take whatever job is available that you can do with your disablity. It's nice to love your job, but not always possible. Do what you need to do to meet your basic needs while keeping an eye out for that ideal job.

No matter how you try to justify it, getting another credit card is not the solution to your problems.

[frogger]

While living in a subsidized apartment can be a limitation that any income I make, the landlord takes 1/3rd of my income to rent. The more income I make, the higher the rent goes.

No it doesn't. That's nothing more than an excuse or cop out.

You get to keep 2/3 of your income, however it appears that you're not willing to increase the 1/3 to the landlord or the 2/3 to yourself.

That being said, who cares if you need to pay the landlord more money??? That just means that you make more money for yourself.

Stop making excuses and deal with your business........

[Logan]

No it doesn't. That's nothing more than an excuse or cop out.

You get to keep 2/3 of your income, however it appears that you're not willing to increase the 1/3 to the landlord or the 2/3 to yourself.

That being said, who cares if you need to pay the landlord more money??? That just means that you make more money for yourself.

Stop making excuses and deal with your business........

I guess the OP likes his low standard of living.

[AngelinaCat]

Sounds like some low information 'guests' we are currently dealing with. They think they are 'slick' and are pulling something over on 'Da System'. I have a ((((((News Flash))))) for these type of people: You are going to get 'found out' eventually.

My advice: Become an ADULT NOW, and accept responsibility for yourself and the decisions--no matter how poor--that YOU made. No one else made them for you.

[AngelinaCatHub]

My two cents: Listen my friend, I/we upon our bk vowed not to go into debt. We lost value of over 10 mil. Our fault and an enemy who sued our arse off for spite.

Don't give me your sob story and excuses. We have no credit and we were 820. Your score was nothing and is nothing. Grow up, live in your means, don't attempt to "beat the system". A little story now: The ONLY credit I had was a $2500 OD account. This means if my DEBIT CARD overdrafted, I had 2500 bucks to back me. Since our BK, I have run up that amount and balanced $100.00 back and forth for several years due to the fact that I cannot control my spending. All this thing did for me was cost me interest and keep our credit score down.

This year I paid off the 2500 and requested my OD account to be limited to $500.00. WHY? Because I'm not mature enough (at age 68) to be responsible and/or discipline to control my bad habits that helped lead me into BK. Ergo, I limited myself. It is called RESPONSIBILITY. You are never too old to "grow up". The sooner, the better. You my friend are on your way to further misery. RETHINK your life.

Don't use your infirmity as an excuse. You are only crippled if you declare yourself to be. 'Hub

[MarkCantaur]

My only comment is that you must be nuts to be doing what you are trying to do and get away with.

[Sanctum1972]

Forget it, people. You guys don't understand me.

Moderators close and delete this thread, please.

[LadyInTheRed]

Forget it, people. You guys don't understand me.

Moderators close and delete this thread, please.

Sorry, you don't get to have a thread closed or deleted just because you don't like the advice you receive.

[Sanctum1972]

Sounds like some low information 'guests' we are currently dealing with. They think they are 'slick' and are pulling something over on 'Da System'. I have a ((((((News Flash))))) for these type of people: You are going to get 'found out' eventually.

My advice: Become an ADULT NOW, and accept responsibility for yourself and the decisions--no matter how poor--that YOU made. No one else made them for you.

I have a (((News Flash))) for you. I already have worked on what was needed to work on for the last few years. If you think I'm cheating 'da system' like you said, I'm not. The BK discharge was clean and professionally done by a lawyer I was assigned to years ago. I had good reason to do it at the time. The current landlord (or charity organization that runs this low-income housing for single people with disabilities) has always been professional and was flexible to my employment changes. Any employment changes I have, I've always reported to them. As for other income, I work independently at home as an artist and any income I make over $600 for that tax year is reported to the IRS, NOT the landlord because it's a different pay model. Not a bi-weekly or weekly paycheck. It does'nt work like that. Freelance work fluctuates greatly as clients come and go.

Part-time jobs or anything that is of bi-weekly or weekly pay is reported to the landlord, or any form of benefits, is figured in their rent. Anything that is fluctuating and not of fixed income usually is'nt figured in their rent and goes straight to the IRS, and I usually do this via PayPal's archives to keep track of it. I worked at the print shop PT job for two years until things got unstable there which I needed to jump off, one in which the employer "encouraged" me to do.

The landlord figured in my government benefit which goes towards mostly to the rent and other living necessities. The state approved it because I had old documents that I saved over the years and recent tests proving my case. The subsidized home I'm in was the only one available at the time I was trying to leave the homeless shelter and got my name on the list. You might not know this but the housing situation in VT is skewered. I'm sure it is like that in many places.

That goal is really about balancing my budget while trying to improve on other things, especially saving up so that I can move out of this small town in the future, and get my life back on track, even my career. Is this forum supposed to be about improving our credit while maintaining a budget?

[LadyInTheRed]

Is this forum supposed to be about improving our credit while maintaining a budget?

The forum is about rebuilding credit. The advice you have received is consistent with that topic. To rebuild credit, you must live within your means. Otherwise, you'll incur debt you can't pay and defeat any rebuilding efforts. You already have a credit card. If you want to rebuild your credit, get the balance down to less than 10% of the available credit and keep it there and make payments on time. You should not use your credit card for anything you don't have cash to pay for. Getting more credit cards when you are already having problems paying on one will not help you rebuild your credit.

Budgeting is a separate subject. Credit card use has no place in a budget. You can have a terrible credit rating and still successfully live within your budget.

Based on what you have told us here, your focus should not be on rebuilding credit. You need to focus on creating and living within a budget based on your income and increasing your income so you can better cover your living expenses.

And, FYI, all taxable income you earn must be reported to the IRS. $600 is a threashold at which your customers are required issue a 1099 to you. You are required to report every dollar you are paid, weather or not your receive a 1099.