Eeeeeeeeek (Got my first post-BK credit card)

[ohiogal]

Hi all,

Well, my discharge is 2 months behind me and I got an offer in the mail from Capital One for a no-annual-fee, 0% intro rate credit card to help me rebuild my credit.

After going back and forth for a while about whether to bite, I decided to take a chance. And I got approved!

EEEEEEEEEK. My plan is to use the card for small purchases and pay the balance every month, and for emergencies, but it's funny how I used to have credit and not think twice about it, and now I have ONE card (with a small limit, no less) and the mere thought of having one makes me uneasy.

Did anyone else feel this way, those who got a post-BK credit card? In a way I feel better having a card as a safety net, but in a way, this is how I got in trouble in the FIRST place!

But, I'm sure I'll be proud of myself when I keep paying down that balance to zero every month. Sort of a test of wills, doncha know...

[MSbklawyer]

Hi all,

Well, my discharge is 2 months behind me and I got an offer in the mail from Capital One for a no-annual-fee, 0% intro rate credit card to help me rebuild my credit.

After going back and forth for a while about whether to bite, I decided to take a chance. And I got approved!

EEEEEEEEEK. My plan is to use the card for small purchases and pay the balance every month, and for emergencies, but it's funny how I used to have credit and not think twice about it, and now I have ONE card (with a small limit, no less) and the mere thought of having one makes me uneasy.

Did anyone else feel this way, those who got a post-BK credit card? In a way I feel better having a card as a safety net, but in a way, this is how I got in trouble in the FIRST place!

But, I'm sure I'll be proud of myself when I keep paying down that balance to zero every month. Sort of a test of wills, doncha know...

Don't let them raise your limit. If they do, call them and make them lower it again. Cancel the card if they don't. It's nearly impossible to get into trouble with a credit card of a $1000 limit or less. And if you're using it the way you're supposed to use it, and paying it off in full each month, $1000 is plenty. And don't get any more cards.

And don't think of it as a safety net. A savings account is a safety net. A credit card is a convenient way to pay for things like gas at the pump, you need one for rental cars and airline tickets &c. But it's not a safety net.

[ssmdem]

I can only hope we'll get an offer like that after discharge. I really hate using my debit card so often. I watch my account close but just worry about my number falling into the wrong hands. I feel safer using a credit card at the gas pumps and online.

[ccsjoe]

Just be smart about it. And remember, if there is 1 cycle that you can not for some reason pay the full amount, STOP using immediately until paid off. Don't fall into this trap again. Oh yes, congrats...

[wnguyen]

Ohiogal

No annual fee and 0% APR intro rate is very tempting and surprising too. I don't know if I myself would resist that temptation, especially at the time of need... but that also leads me to trouble. Anyway, use it responsibly and that would be a very good chance to rebuild your credit.

[cantbreathe]

Oh Dear! Only 2 months after discharge! cantbreathe can already see herself racing hubby out to the mailbox to search and destroy!!!! LOL I would just love some breathing room for at least awhile.

Congratulations on your beginning of rebuiding, ohiogal!

[ryan]

...And don't think of it as a safety net. A savings account is a safety net. A credit card is a convenient way to pay for things like gas at the pump, you need one for rental cars and airline tickets &c. But it's not a safety net.

Boy is this true!...and I had to (naturally) learn it the hard way.
I actually thought that $20,000K line of credit with AMEX was a 'safety net' ...

HA!, what a joke. The minute things got difficult it was yanked down overnight to $1,000 bucks----and I was up a creek.

A REAL safety net doesn't disappear overnight.

[ohiogal]

Boy is this true!...and I had to (naturally) learn it the hard way.
I actually thought that $20,000K line of credit with AMEX was a 'safety net' ...

HA!, what a joke. The minute things got difficult it was yanked down overnight to $1,000 bucks----and I was up a creek.

A REAL safety net doesn't disappear overnight.

Good point! AMEX did that to me too - I was ONE DAY LATE on a payment, and my limit went from $5000 to something like $1500, and my interest rate shot up from something like 8% to 29%.

I got them talked down on the interest rate but not the limit, which was OK since I'd stopped using the card anyway.

Thanks for the advice, everybody! :-) I appreciate it!

[Fletch]

Been lurking here for months. This offer brings back memories of all the offers I got over the years. I think I took every last one of them... Which brings me to where I stand today...I would decline the offer.

1 card leads to 2 to 3 and so on and so on.

Cash is king!


PS I will tell my story on here someday, I just dont know where to start.

[keptdigging]

Amex cut my limit to current balance plus a few hundred 18 months before I missed my first payment. It was quite the downward spiral since every time a card did that it decreased my credit score and had other cards reducing limits.

Yeah, the only safety net is CASH.

But I filed a 7 Thursday and will NOT be playing that game ever again.

One card with a $1000 limit for renting cars and making reservations (all to be paid with debit or in full) would be perfect.

[angles]

I can only hope we'll get an offer like that after discharge. I really hate using my debit card so often. I watch my account close but just worry about my number falling into the wrong hands. I feel safer using a credit card at the gas pumps and online.

[ccsjoe]

So I was thinking if someone got our debt number they could clean out our account and it would be months before we get reimbursed.

angles,

Nowadays most banks offer immediate credit against reported fraud and full resolution within 48-72 hours. Your money will be available for you to use as normal while the bank determines the fraud. All you need to do is check your balances daily, which, if you use online banking, then you pretty much do. As soon as you detect fraud, report it. Again, this is with most banks.

Just wanted to ease a bit of that concern off your shoulders.

[kartoons19]

angles,

Nowadays most banks offer immediate credit against reported fraud and full resolution within 48-72 hours. Your money will be available for you to use as normal while the bank determines the fraud. All you need to do is check your balances daily, which, if you use online banking, then you pretty much do. As soon as you detect fraud, report it. Again, this is with most banks.

Just wanted to ease a bit of that concern off your shoulders.

Hey Joe. Do you know if credit unions are the same way? I keep most of my funds in my savings account and just transfer to checking as needed. I don't have them automatically connected, so if someone gets access to my debit card, my savings account should be safe, I hope!

[ccsjoe]

Hey Joe. Do you know if credit unions are the same way? I keep most of my funds in my savings account and just transfer to checking as needed. I don't have them automatically connected, so if someone gets access to my debit card, my savings account should be safe, I hope!

I honestly do not know about credit unions, only had a token account at a very small one and their technology as really there...they only went online about 4 years ago. I would presume the bigger ones are similar, but bear in mind I've only worked with bigger banks like BofA, Comerica, etc.

[df04527]

I have to say that when you are rebuilding credit -- it is NOT good to pay it off every month. Rebuilders want to charge say 100.00 or whatever (10% of limit or so) and then make those payments and make them on time and every month - without fail. You must do this to rebuild. Lenders and FICO want to see your history. This history is what will eventually begin to build positive tradelines and thus scores and lenders will view you as less "risky".

Paying off and having zero balance every month does not show this.

Paying off every month is for people who have good credit and are not trying to rebuild.


ps: my post count isn't high as i just bumped in to this board. Have been doing this type of thing for quite some time though. hth