Kohls sent me a new CC pre-341

[lulabelle]

They are included in my CH 7 and they're sending me a new card with a $1000 credit limit already? Seriously?

No worries, it's going in the shredder, but since I'm now very anti-credit, I think that companies shouldn't even be allowed to do this. I understand the idea that some people need to rebuild their credit to buy a home or a car, but you should have to get through the whole bankruptcy process first. For some people, sending them a new credit card, before discharge even, could be equated to going to an alcoholic's anonymous meeting and being handed a beer. I don't get it.

[Overmihead]

I don't get it either. We are getting more than a dozen calls a day from one of our CCs that we quit paying on, and yesterday we got our shiny new cards from them in the mail (which were promptly cut up). Go figure.

[Mensa1]

I like that when at the AA meeting they offer beer. j/k.

The only thing about this Lulu is that many folks would nearly kill for having a trade line like this available after Bk. If it were me I wouldn't shred it, I would wait until discharge and use the card sparingly, charging 100 bucks worth of needed mchds and pay in full each month... ALWAYS!!! It doesn't sound like you are inclined to do so but it is really something that could be beneficial to you; but I can see that you aren't in agreement. My suggesstion is to let it simmer a bit before you hit the shreader with the card. (ala Dave Ramsey)

[ejhamilton]

Yes, you need credit to rebuild your credit. But if you're not ready to handle it, then it's a good choice to shred it. However, I will only be getting a card from like the grocery store, or a visa. Something I can use to buy things I need, that I always pay cash for, then pay it off the day I receive the bill. That's the best way to begin rebuilding your credit.

[sawdust14]

We still have our Kohls card post bankruptcy. The wife uses it 3 or 4 times a year to take advantage of their discounts. You have to use the card to receive the discounts. We never carried a balance on the card. It has been 3 months since we have filed and are now discharged and closed. I Just paid the $37 balance a few minutes ago for several items she bought last week. I wonder how long it will be before they do a periodic credit check, and if they will cancel the card?

[Dannmcg357]

Yes, you need credit to rebuild your credit. But if you're not ready to handle it, then it's a good choice to shred it. However, I will only be getting a card from like the grocery store, or a visa. Something I can use to buy things I need, that I always pay cash for, then pay it off the day I receive the bill. That's the best way to begin rebuilding your credit.

Where is this written? Why do we feel we must have a cc to rebuild credit? I think its bs

[ejhamilton]

Yes, it's bs, but it's true and you can't change the credit system. It's not a feeling, it's fact.

If you have NOTHING on your credit report except a bankruptcy, how do you expect your score to go up?

Here's what makes up your credit(FICO) score.
Paying your bills on time 35%
Debt to credit limit ratio 30%
Length of credit history 15%
New accounts and recent applications for credit 10%
Mix of credit cards and loans 10%

[ejhamilton]

If you can't handle the responsibility of a credit card, then get a secured credit card.

If you don't ever want to buy a house, then you don't need to rebuild your credit.

If you already have a mortgage, car loan, student loan, or other loan and you continue to pay on time, then that should be sufficient. But for those of us who are going to be left with nothing after our bankruptcy and don't want a $300 a month car payment, then a cc is a great option. That is, if you have self control.

[Dannmcg357]

Where is this written? Why do we feel we must have a cc to rebuild credit? I think its bs

Allow me to back peddle, it may be ture but I don't like it. I wish there was another way but I am finding it difficult. I certainly don't mean to judge you or anyone else for using or getting one post bk. I am in the same boat and need something as my job requires me to travel a couple of times a year. So, if you get a cc, make a charge and then pay it off consitently every month that will start to give you a positive payment history?

[ejhamilton]

I don't like it either. I wish having nothing on there was better than having a credit card on there.

Never use more than 1/3 of the limit, preferably less. So if you have a $900 limit, try not to charge more than $300. If you pay it off every month, IN FULL, it will rebuild your credit quite quickly. Even if you only have 1 card, it will still make a huge difference. Plus, if your job reimburses you for travel, you are essentially building your credit on their bill. What can get better than that?

The way it will be seen is that you have active credit, you have a stable on-time payment history, and you have more credit available than what you owe. Some people forget that if they get a credit card and never use it, that company can and usually will close it. Closing a card looks bad. It removes your available credit. Available credit is good.

I worked for a mortgage company and pulled and reviewed many credit reports and people who had a bankruptcy over 2 years old and paid their credit cards off every month ended up having very high scores, as in 680-720. The bk was not an issue.

I'll never forget when I saw someone with an 840 FICO Score. This man paid his mortgage every month, and he had 1 credit card, a Kroger card, that he had for 10 years. They bought their groceries on it every month, and paid it off in full every month.

[lulabelle]

FICO scores are a complete crock.

Like I said, I do understand it in the case of someone that will need credit in the future. In that instance, having one credit card may be a good idea. I just think that you should have to get through the actual bankruptcy process first, before they start throwing credit at you again.

[Dannmcg357]

Plus, if your job reimburses you for travel, you are essentially building your credit on their bill. What can get better than that?

Good point!
And good info thanks

[ejhamilton]

FICO scores are a complete crock.

Like I said, I do understand it in the case of someone that will need credit in the future. In that instance, having one credit card may be a good idea. I just think that you should have to get through the actual bankruptcy process first, before they start throwing credit at you again.

Yeah, if you don't need to buy a house, there is no point in getting a credit card. I do agree that it's not right for them to throw out offers while you are still in an active bankruptcy.

[ejhamilton]

Good point!
And good info thanks

No problem. The more you know, the better choices you will make.