Crazy Credit Card Companies

[desperation]

I have'nt even been to 341 meeting yet, but I'm getting credit card offers from Capital One....build up your credit by the month, or heck if that ain't gonna work for ya.. just call us personally, and we will increase your initial credit line. Do what.........?

Two more letters from car dealerships wanting me to finance some used wheels 2002 and up models, states BK discharge not necessary, and I could get a second vehicle for family.

OMG....

there is'nt an emoticon on this forum to describe my feelings right now. Am I tempted?....yes. Am I gonna call them....?

NO...BIG HUGE NO....their solicitations are going right thru my shredder. I gotta get back on my feet first and once the dust clears then, and only then will I even contemplate ever doing credit cards again. Right now personally I don't care if I ever see one again.

Sorry so long. Anybody else out there get these kind of offers, and what did you do?

[Logan]

America is a beautiful place. I've been in the loan business for the last 3 years and I'm amazed with some of the approvals I received from the lenders. There's alot of finger pointing going on but I was an honest loan officer and told everyone what they were getting themselves into and I was amazed at the lack of foresight from the borrowers and the lack of common sense from the lenders.

Then again, I'm the one going into chapter 7.

[jal1129]

Yep, since about 2 weeks after we filed we have received some type of loan/cc offer in the mail just about everyday.

[BassBoy]

These types of offers will flood your mailbox. There always seems to be some creditor offering to help you rebuild. IMO, whatever they say about being to grant a loan or credit before your discharge is not something I would believe. You do not want to take on any new credit or loans until after your BK's are overwith anyways. Why raise the red flags? I know it can be tempting, but I think these sharks are only looking to suck us back into the debt pool. When I got these offers, I used to say to myself, "They must be jealous of me because I'm no longer swimming in a pool of debt."

Here's what I did sometimes when I got these offers. The creditors/lenders have to pay the postage when someone mails the authorization, wanting the credit or loan, so I made sure that I blacked out/cut out anything with my personal information, blacked out/cut out the bar codes from the authorization and the envelope, and then stuffed it full of coupons (that I didn't want), thus making the postage costly. I know, sounds juvinile, but I would have loved to seen the look on the face of the person who opened that envelope. LOL!

[Logan]

BassBoy,

You figure that if you get a $500 credit limit at 20% interest rate and you run that thing up and your late etc the credit card company can make quite a bit off that $500 charge. You can't go BK for 6 years so even if you paid 20 bucks a month they make money...

[BassBoy]

You're absolutely right Logan. It's kinda sickening that some of these lenders will prey on those with credit issues, don't ya think.

Not that it's relevant, but I would hope that no one would except a CC that has such a high interest rate, like 20%. I think we're capable of getting better offers than that.

[Logan]

When I get my first credit card I will not care about the interest rate because I will pay it off every month and use it to build back my credit. I would rather have a high interest rate than a yearly payment.

Logan

[DeadManCrawling]

My thoughts:

These predators know full well we are in bk and not finished with the process.

They are putting themselves "First in line" for your money after bk. The debts you might create cannot, of course, be discharged if you use these funds during or after the bk, and you cannot file again for many years.

In effect, they can squeeze you as long and as hard as it takes to get their money back. And if you default, they can REALLY stick it to you, through garnishments and judgements that you won't be able to do anything about.

One more kick while you're down, and a few kicks as you try to get back on your feet.

best wishes,

-dmc

[BassBoy]

When I get my first credit card I will not care about the interest rate because I will pay it off every month and use it to build back my credit. I would rather have a high interest rate than a yearly payment.

Logan

Good to hear these kinds of things.

On the other hand, I would hope one would care a little about the interest rate they receive, because with most of the CC's for those with BK's and poor credit, some have fees that damn near max out the card to begin with and if something life altering was to happen (and I pray that never happens to any of us), the interest rate alone can push the card over the limit and the snowball gets rolling again.

[sofarindebt]

are you allowed to apply for credit during a bkcy?

I just got a zero percent offer for a year in the mail and was thinking of applying. Of course just for groceries and gas and pay it off every month. Why would this raise a red flag?

[Logan]

Personally, I would wait until discharged and no one is looking or controlling my finances. But that's just me.

[BKTango]

I just got a zero percent offer for a year in the mail and was thinking of applying. Of course just for groceries and gas and pay it off every month. Why would this raise a red flag?

You are not allowed to apply for new credit, or gain new debt while in a open bankrutpcy without the trustee's permission. That being said, some folks have had cards with zero balance survive the bk and used them while going through it, some just accepted offers in the mail and got it before they were discharged., and some have just said the heck with it and applied with cc companies and got approved. Others...we wait. Why do something even the smallest of things not meaning no harm that could potentially screw up your case?

[sofarindebt]

well does the trustee pull your credit report

or something before discharge? How would they even know?

[desperation]

BassBoy....I like your approach!

I will not be tempted, and refuse to be tempted by any of these new CC offers. Heck got a new one in the mail yet today offering me a $30K line of credit. Into the shredder that offer goes.

I have made a deal with myself that I will not take out CC cards ever again, and that if I was even tempted then DW has permission to smack me in the head with a ball bat She has agreed.....being sick and tired of me stressing over finances.

My 341 is in 12 days.....wish me luck!

Best wishes to all who are going thru this!

[AreSoonParted]

I'll probably go ahead and one of these awful cards because my job sometimes requires me to travel at short notice. The alternative is to use my debit card on my checking accnt, but that really messes up the cash flow while in BK.

I can't believe the type of offers I was getting in the mail right up until I filed. 117% LTV on my house at 13%!!! No way. Other than using a CC for work related travel, I'm "on the wagon" regarding CC's. Even though they aren't the root cause of my financial problems, the cash advances allowed me a state of denial for a while and made my implosion bigger.