Non-Secured Credit Cards?

[MBeach222]

I have not filed CH7 yet, and all my credit cards are maxed or closed.

Can anyone recommend a source of credit just to get me through the next few months?

I am not planning to discharge this new credit, just use it to make periodic purchases until I am through the CH 7 process.

I do not want to use a secured card for this. I need a small amount of credit. About $2k

Ideas?

thanks

[iswmle]

A source of credit? Do you not have a job or some other source of income? Do you need to rely on credit at this point? I think relying solely on your debit and cash is the ideal way through your chp 7. I can't think of a bank that would be willing to extend 2k to someone who is maxed out/ closed and a high risk for bk. Even the subprime banks may shy away... no offense, but your plan doesn't sound very well thought out.

[Freddy03]

I have not filed CH7 yet, and all my credit cards are maxed or closed.

Can anyone recommend a source of credit just to get me through the next few months?

I am not planning to discharge this new credit, just use it to make periodic purchases until I am through the CH 7 process.

I do not want to use a secured card for this. I need a small amount of credit. About $2k

Ideas?

thanks

From my understanding you can not pick and choose what cards stay out of BK. If you obtain credit now and use it up until filing there is a good chance it won't be discharged. Also if you have a credit card with available balance once you file they will most likely close the account.

[frogger]

If you can't live without credit now, you're certainly going to have a problem after filing bk. Either learn to live with a debit card or cash. Now is the time to start adjusting your life and your lifestyle.

[MBeach222]

Yes, I know it is not optimal, nor thought out...but there are cards that specialize in bad credit customers. I was asking if anyone had one they'd recommend. I thought asking for personal experiences would be better than just googling it.

I am self-employed and wanted a card to use to pay my suppliers for materials needed, until I can invoice my clients, and cash their checks.

If I have cash in my account for that purpose, I will lose it during CH7....thus the thought of using credit. I assume there is no problem if I do not seek to default on it and if it is a small amount. But I am no expert and welcome opinions. Thanks

[frogger]

Time your filing for when you have little to no money in the account associated with the debit card. Do not get another credit card......

[iswmle]

Like I said earlier, if you have maxed out/closed accounts I just don't see many banks (even the sub prime ones) willing to extend. You are too much of a liability. But I suppose you can always try for something like Orchard, Capital One, etc...

[HHM]

You will get credit cards AFTER the BK, but there is no way to guarantee that a card you have before filing BK, even with a zero balance, will stay open.

You appear to be working on the wrong end of the problem, instead of trying to find more credit, you should be working on cutting your expenses.

[buzzstpoint]

You will get credit cards AFTER the BK, but there is no way to guarantee that a card you have before filing BK, even with a zero balance, will stay open.

You appear to be working on the wrong end of the problem, instead of trying to find more credit, you should be working on cutting your expenses.

+2

before I filed, I called everyone of my monthly bills (Even the credit cards. They were no help)
Like my cable.. We were paying 145 per month, we cut back, now were down 85 per month. Be persistent. The gal on the phone told me there were no options to lower my bill.. I told her Then cancel the whole plan. Low an behold, serviced were able to be dropped, and by bill lower. Cell bill, I pay 177 per month, Dropped my wife's internet plan, and I will downgrade to a cheaper phone soon and remove my data plan. That will save us 35 there. In just 2 phone calls. I saved 95 bucks a month.

It's hard at 1st, you have to separate luxury from necessity. I used to hit the bar every Friday. That's 40 bucks a week there. I haven't been out in 6 months. Substitute the digiorno pizza for a handful of Ramen. It wont be like that for long... Just until we get a grasp on a different way of living.

You may have read it 1000 times out there and never followed it.. Sit down and write out were every cent goes. Right down to the 60 cent candy bar or the 4 dollar Starbucks. Once you see where all your cash goes, you'll be able to budget and change your habits... Our vice was dining out. I love food, and love to eat out.. 6 months ago, I'd probably drop 1/2 a paycheck on eating out every month.. Maybe more. We still eat out, but we are selective where we go, and how many times we go.
Here's an example, We love this Italian place in town. When I take the family there I'll drop 80 bucks on the meal. Do we go there still? Yeah... But differently.. My wife and I will go to the Wendys next door, then walk over to the Italian place and have a Creme brulee (her favorite). Just cut our 80 dollar meal down to 25.

[bcohen]

+2
before I filed, I called everyone of my monthly bills (Even the credit cards. They were no help)
Like my cable.. We were paying 145 per month, we cut back, now were down 85 per month. Be persistent. The gal on the phone told me there were no options to lower my bill.. I told her Then cancel the whole plan. Low an behold, serviced were able to be dropped, and by bill lower. Cell bill, I pay 177 per month, Dropped my wife's internet plan, and I will downgrade to a cheaper phone soon and remove my data plan. That will save us 35 there. In just 2 phone calls. I saved 95 bucks a month....

...Our vice was dining out. I love food, and love to eat out.. 6 months ago, I'd probably drop 1/2 a paycheck on eating out every month.. Maybe more. We still eat out, but we are selective where we go, and how many times we go.
Here's an example, We love this Italian place in town. When I take the family there I'll drop 80 bucks on the meal. Do we go there still? Yeah... But differently.. My wife and I will go to the Wendys next door, then walk over to the Italian place and have a Creme brulee (her favorite). Just cut our 80 dollar meal down to 25.

I am not trying to sound judgemental, but it sounds like there are more things you can cut. Contrary to what the cellphone and cable companies would have you believe, cellphones and cable TV are luxuries, not necessities, and frankly are very overpriced for what you get. Likewise, eating in a restaurant--any restaurant--is a waste of precious money. For example, spending $25 on a fast food dinner and overpriced dessert at a restaurant is not a good use of money, when you consider what it would cost to prepare that same meal at home for yourself and your kids.

I of course, never had cable TV, as I thought it to be a waste of money, but I did have a cellphone. When money got tight and I had to re-prioritize, I quit paying on it and let it charge off. I also quit paying on my credit cards--out of necessity--and let them charge off. I also used to eat in restaurants frequently, but now go less than once a month, if that.

It turns out that most of the stuff that I wasted money on when things were good is meaningless stuff that I don't really miss now. The important thing is that me and my wife have each other, and that we have a decent apartment to live in and good food to eat. We don't need to waste money going to bars and clubs, movie theaters, or eating overpriced meals in a restaurant. We have a kitchen, and I can cook a better meal than what we'd get in a restaurant--even a very expensive one--for a fraction of the cost.

Anyways, my point is that when you are contemplating bankruptcy, you need to get rid of any and all unnecessary expenditures and convert any non-exempt assets (eg. cash in a bank account) into exempt assets (such as by stocking up on food and household supplies, refilling your medication, replacing any clothes that are wearing out, and having any deferred maintenence on your home or car performed). Then when your account balance is as low as possible, you file.

[LadyInTheRed]

MBeach222, if your credit is shot, the only card anyone is going to give you before you file is a secured card. The savings account that secures that card will be an asset in your BK. Don't forget that your materials and what your customers owe you on the date you file are also assets. As already mentioned, timing your filing will be key for you.

[IamOld]

If I may chime in - I know that the original poster - Mbeach (forgive me I don't mean to talk about you in the third person) - that he/she/you want to essentially fund business receivables or as they used to say in the "old" days - a factor. BUT and however - for what it's worth - don't do it...from personal experience you get over your head with these loan sharks - one reason I'm here - don't don't don't do it - and I KNOW it's easier to say than do, but don't....

And hello bcohen! Re cellphone - is it a luxury? It depends - I have to have it for work and it's pretty reasonable thru Sprint. And yes spouse and both kids (older teens) have a phone - family plan. I really can't do it cheaper...this is something I am - this day and age - not going to compromise on. I also looked into Boost mobile (runs on Sprint) or Virgin (also runs on sprint) turns out we'd have to pay MORE/mo. Also, since I've been with Sprint for almost two decades!!! we have yet to pay for our phones...last time I paid for a phone "upgrade" I don't remember :-) i guess this is a vice of mine then. But for work I cannot NOT have a phone.

Cable/home phone/internet - on same bill - yes cable is a bit of a luxury but really the only one we have left. :-) I wish spouse would let me get rid of home phone...we haven't been answering it anyway, thanks to our best friends in the collections business :-)

Eating out - man I miss it - but for four people it's like $80...at MINIMUM!!!!!!

[buzzstpoint]

As for Cell phones, I do have to have one with my job. (On call 24 hours) and family plan. But I could live without cable.. and i have no land line.
The point I was trying to make.. There is usually always something we can cut instead of trying to take out a line of credit.. Can I cut more? I'm sure I can. Will we.. probably.

The whole Living off of Luxury and cut to skid row is kinda a culture shock for some people, so cutting down here and there till you get a hold of things is usually a better idea then shutting everything off and living with oil lamps..

[lillymarlene]

The point I was trying to make.. There is usually always something we can cut instead of trying to take out a line of credit.. Can I cut more? I'm sure I can. Will we.. probably.

The whole Living off of Luxury and cut to skid row is kinda a culture shock for some people, so cutting down here and there till you get a hold of things is usually a better idea then shutting everything off and living with oil lamps..

Yeah, that's so well said. I'm now 12/48 months into my chapter 13, and I never believed I could live the way I do now, cutting everything to the bone, but it's entirely possible. You do just have to watch where every little thing goes, in your home and your business. (I'm self employed, too.)

Then one of the biggest things is where I used to always want top quality luxury items, in clothing, food, cosmetics, etc...Now I will always opt for the cheaper alternative. For example, recently I needed a new pocketbook. Years ago I thought nothing of going out and using the plastic to get myself an all leather designer brand. Now I'll pay cash for something under $25. When I graduated from college (too long ago :-) to treat myself good, I went to the most overpriced department store in my area, and bought a dress for $350. Now, I'm planning to attend a wedding in a couple of months, and I actually found something I like for $22.

Sometimes, I just can't believe all the money I squandered years ago.

[mountanddo]

I am not trying to sound judgemental, but it sounds like there are more things you can cut. Contrary to what the cellphone and cable companies would have you believe, cellphones and cable TV are luxuries, not necessities, and frankly are very overpriced for what you get. Likewise, eating in a restaurant--any restaurant--is a waste of precious money. For example, spending $25 on a fast food dinner and overpriced dessert at a restaurant is not a good use of money, when you consider what it would cost to prepare that same meal at home for yourself and your kids.

Anytime someone says "not to sound judgemental" thats exactly what they are being. There are a lot of things that we could cut out of our lives if we really HAD to. It sounds like buzzstpoint found a solution that works for him. I think that having a Wendy's meal and a nice dessert is a reasonable alternative to what they were doing. Yes, we all could live without cellphones and cable and going to movies and eating out and if that works for you, great! What is an unnecessary expenditure to you might not be to someone else. For instance the only entertainment I have is my cable/dvr. I don't go out or go to movies. It is my entertainment. Could I get by with less? Sure, I could hook up an attenna with tin foil (maybe not anymore since we've went digital) and only watch public television. Each of us has to determine what quality of life will work for us. It's possible that you are a great cook and can get by with just cooking at home. I'm a terrible cook and if eating out once in a while raises my spirits then I say it was money well spent not wasted. Bankrupcy shouldn't have to feel like a punishment.

If we all had the ability to plan for bankrupcy I don't think half of us would be in the position that we are in today. We would of been doing those things to begin with. While I think you do have to rewire your thinking about how to spend your money within your budget I don't think that just because you are filing bankrupcy that you have to do without everything. Obviously we all have internet. There are some that might say that is a luxury.