Originally posted by dp1969
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Thanks Pa,
You've offered a lot of great advise to me and I'm grateful!!
DP
You've offered a lot of great advise to me and I'm grateful!!
DP
I don't think your attorney's advice is wrong, but maybe a bit excessive. There are web sites regarding rebuilding credit and so on, there is also a forum here on this site specifically re rebuilding credit after bk.
What works for most people is to just get one secured card - you pay maybe $50-100 for the fee to have the card, then deposit say $300-500 which covers the "credit limit" they give you on the card. What matters is that they report your card as a normal card to the credit bureaus.
If you use this card regularly and responsibly - but do carry a limit of about 1/3 of the credit limit - then after 6 months to a year you will begin to get offers or become eligible for non-secured cards.
If you have a credit union or good relations with your bank (ie; if you did not file bk against them) you could try to negotiate a similar secured card or even a secured loan with your bank or credit union and use that credit to re-establish your credit worthiness.
I heard recently of someone backing a credit union credit card with a certificate of deposit.
I was lucky, in that I have one credit card that survived the bankruptcy, even though it's a VERY low credit limit. I am using it in hopes of establishing credit. I am carrying a 1/3 balance on it and paying more than the minimum each month. As soon as it is paid off I will charge another 1/3 on it...
I do think it's important to have a credit card or two, just don't let yourself USE more than you can easily pay back within, say, 3 months. That's my approach, anyway.
Do be careful about some of the card offers you will get in the mail. I got one for example that offers a $500 credit limit, BUT I have to pay $250 in fees to get it! No thanks!
A NEW START!!!
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