Don't Ruin your Fresh Start!

[Roadrunner]

Was reading someone at another board, and they just really irked me! They filed bankruptcy 2-3 years ago, and are now complaining about still being unable to reestablish accounts and can only get the type of cards that carry monthly fees and only have $250-300 limits. I looked back thru their older posts, and they commented about going overlimit & being late on cards and a car loan in the time between the bankruptcy and now!!!

Duh!!! Late payments after bankruptcy are BAD NEWS and there is very little - except the passage of time and lots of it - that can help.

In this case, I don't think it is the bankruptcy that is preventing credit growth-but poor credit management since.

[edwards2]

RR - I agree with you...one of the lenders that gave us a loan said they seriously look at one's payment record post-BK. I guess they are looking to see if you are back on your feet and if so, how you are paying your bills now....so definitely try and stay on the straight and narrow because even though lenders take BK into consideration they dont seem to have much tolerance for a lot of late fees post-BK...Our BK discharge is not even a year old and we have Hooters, Cap One, Juniper Bank, Orchard and Target Redcard and we financed a truck through Ford Motor Credit..by the way my credit score is 650 and climbing...trying to get to 700 by year's end.

[newstart]

I second that, It is hard to rebuild credit but why go thru filing for BK and disputing CRA's just to fall right back into the same old ways. If you aren't paying on time why should someone say here is more credit for you. BK should be a persons way of getting back in control not spiraling back out of control.

[onepowerfullady]

I totally agree with you all. I know that my DH and I are doing everything now to get our spending habits on track and really budget our money. I don't EVER EVAH wanna go through this nightmare again. I don't want anyone to tell me that I can't have what I want because of my credit after BK. We are doing this because we love our children and we love each other.

[BassBoy]

I just said something similar in another thread. Newstart makes a great point about why someone would get out from under the debt, and then, get right back under debt.

You can't build a skyscraper without the proper foundation.

[Jman30]

You can't build a skyscraper without the proper foundation.

Deep man. Deep.

[Chapter7girl]

Quote:
Originally Posted by BassBoy

You can't build a skyscraper without the proper foundation.


Deep man. Deep.

lol, I know what you guys mean. I read these people and how people refuse to pay annual fees, and want these high limits because low limits are worthless. The whole point is to slowly build yourself back up. To me, a $100 annual fee is such a small price to pay to begin rebuilding credit. It's nothing and it's so worth it. It's like $8 a month. I pay $8 a month on so much pointless stuff, that I think rebuilding credit is probably the best $8 anyone could ever spend. But people are stubborn.

[down&out]

lol, I know what you guys mean. I read these people and how people refuse to pay annual fees, and want these high limits because low limits are worthless. The whole point is to slowly build yourself back up. To me, a $100 annual fee is such a small price to pay to begin rebuilding credit. It's nothing and it's so worth it. It's like $8 a month. I pay $8 a month on so much pointless stuff, that I think rebuilding credit is probably the best $8 anyone could ever spend. But people are stubborn.

Respectfully,

I disagree. Why would anyone want to pay an annual fee so you can make someone else (the CC companies) money? $100 is far too much to pay to let some CC company rake you over the coals with high interest.

I went BK on about 60k May of 05. I simply didnt take a credit card untill I got a no-fee offer. Now I have the following no-fee cards:

Cap One $1000 (9.7%!!!)
Juniper Race Trak $1000 (0% first 6 months)
Hooters $500 (over 16% i think)
GEMB $750 (over 16%)

I have never

[tinroofrusted]

Respectfully,

I disagree. Why would anyone want to pay an annual fee so you can make someone else (the CC companies) money? $100 is far too much to pay to let some CC company rake you over the coals with high interest.

I went BK on about 60k May of 05. I simply didnt take a credit card untill I got a no-fee offer. Now I have the following no-fee cards:

Cap One $1000 (9.7%!!!)
Juniper Race Trak $1000 (0% first 6 months)
Hooters $500 (over 16% i think)
GEMB $750 (over 16%)

I have never

I am with you on this.

I DID take the high fee, high interest cards at first, and they are now paid and closed. I won't be making that mistake again!

[BassBoy]

Well said

lol, I know what you guys mean. I read these people and how people refuse to pay annual fees, and want these high limits because low limits are worthless. The whole point is to slowly build yourself back up. To me, a $100 annual fee is such a small price to pay to begin rebuilding credit. It's nothing and it's so worth it. It's like $8 a month. I pay $8 a month on so much pointless stuff, that I think rebuilding credit is probably the best $8 anyone could ever spend. But people are stubborn.

Great point.......and it's not like the annual fee will last for the rest of your life. Once your credit is restored and your finances are back on track, it should be fairly easy to obtain an unsecured, higher limit, low interest, no annual fee credit card.

[anonymuse]

I understand people wanting to clean up and improve their credit scores which obviously does require applying for credit cards. I'll use one to make small purchases and nearly pay them off everytime (ironically, paying off in full everytime does not do any good since they want some interest). However, I only want a credit card to handle emergencies (i.e. transportation to a funeral or something dire like that). Otherwise, get those credit cards and freeze them in a block of ice in your fridge!

[FloridaGirl]

What do you mean paying them off does no good? Of course it does. We are talking about rebuilding credit here. If you are making your monthly payments on time each month, regardless of whether or not you pay in full, your credit report will show a positive payment history. Positive payment history equals a better credit score.

[anonymuse]

What do you mean paying them off does no good? Of course it does. We are talking about rebuilding credit here. If you are making your monthly payments on time each month, regardless of whether or not you pay in full, your credit report will show a positive payment history. Positive payment history equals a better credit score.

Paying them off IN FULL every month doesn't have nearly as good a positive effect as keeping your purchases less than 30% of your max and carrying a small balance (10-20%) so that they earn a few pennies!

ADDED TO CLARIFY: Say you have $1000 credit limit. You charge $200 in a month (20% of your max). Pay off $175, but just carry that $25 balance. That way you'd pay minimal interest, but show a good payment history and low charges.

[BassBoy]

As I understanding the process of re-builing your credit, one needs to show some revolving debt.....and as anonymuse said it, keep the balalnce(s) small.

[down&out]

Great point.......and it's not like the annual fee will last for the rest of your life. Once your credit is restored and your finances are back on track, it should be fairly easy to obtain an unsecured, higher limit, low interest, no annual fee credit card.