? on CC after BK

[basketsbears]

Hi,

I am just curious about rebuilding credit, even tho' we haven't filed yet. Do you HAVE to get a credit card? My husband and I really, really do not want to have any credit cards, and have not used them for over 2 years.

I will have a boatload of student loans to pay back starting Jan 2014, so wouldn't that help? We are not reaffirming mortgage or cars (although we may trade down so there may be new payments, or we will save and pay cash - no decisions made, we are just thinking of different options).

Thanks - just curious if some of you did not get any unsecured credit after discharge and how credit was rebuilt.

Thanks!

[mlsj2009]

Hi,

I am just curious about rebuilding credit, even tho' we haven't filed yet. Do you HAVE to get a credit card? My husband and I really, really do not want to have any credit cards, and have not used them for over 2 years.

I will have a boatload of student loans to pay back starting Jan 2014, so wouldn't that help?

I am just curious, why would you need a credit card to pay student loans? Wouldn't a debit card, check, money order, or cashier's check work just as well?

[mlsj2009]

(LOL at Self) Sorry, you meant would paying your student loans help your credit. Again, so sorry for my misunderstanding. I would think paying your student loans timely should help your credit score, but not sure how all of that works. Good luck to you in your efforts.

[basketsbears]

(LOL at Self) Sorry, you meant would paying your student loans help your credit. Again, so sorry for my misunderstanding. I would think paying your student loans timely should help your credit score, but not sure how all of that works. Good luck to you in your efforts.

Thanks! lol

[SMinGA2]

From what I understand - having good credit history on revolving accounts is important for building credit history. "Mix" or variety of credit accounts is a major factor in the credit score.

But if you have no need to finance a house or car, then it becomes a matter of opinion.

One way to balance things out, should you want the credit-building effect of revolving but you don't want to really have/use credit cards: get a secured card from a local credit union. Preferrably with no annual fee. Put for example $1000 into a savings account, they hold it so you can't withdraw, and give you a credit limit on a secured card. (May be less than the deposit - I had a CU that set the limit at 75% of the deposit to be on the safe side.)

[df04527]

No you do not have to have credit cards to rebuild your credit. Types of credit are only weighted 10% when your score is calculated. Student loans will help your score IF they report. If they are included in your BK, even though not dischargeable, they may not report. Someone else that had SL's may chime in on this.

But basically, car payments and student loans reporting positive history will improve your scores alone. Your biggest impact you will have is when the BK is filed and the flushing sound your score will take as a result of that.

Time does heal credit scores though with little to no input on our part.

[basketsbears]

Thanks everyone! I only have Federal SL, and they are on my credit report now, even tho' I'm not paying. I'm hoping to find a position where my employer pays them for me in exchange for so many years of service after - but I'm probably dreaming on that one! ha!

[ksgirl38]

I would think you'd want the credit card just to boost your score faster. Not to mention that if you ever need to buy an airline ticket or make hotel reservations you have it there if you need it. Just make sure you pay it off right away and there shouldn't be an issue. If you are afraid that it's too tempting to use then maybe I wouldn't do it then.

[Drazil65]

Husband has been getting offers for unsecured cards (most recent yesterday) at low interest rates since the week of discharge. I do not think you will have a problem getting one if you want one.

[ValleYum]

I think we took a 100 point hit for filing. Everything except our mortgage (in the hope of getting a modification) was current.

We reaffirmed our cars and they began reporting as if the BK never happened - it took a phone call or two to get this straight.

We have no student loan debt, so we each got a small CC after discharge and either PIF or left like a $25 balance on the card until the following month. We did take decent offers, too, as far as interest rates and annual fees go.

We both just popped over 700 on all 3 bureaus - 14 months post discharge.

[ksgirl38]

I think we took a 100 point hit for filing. Everything except our mortgage (in the hope of getting a modification) was current.

We reaffirmed our cars and they began reporting as if the BK never happened - it took a phone call or two to get this straight.

We have no student loan debt, so we each got a small CC after discharge and either PIF or left like a $25 balance on the card until the following month. We did take decent offers, too, as far as interest rates and annual fees go.

We both just popped over 700 on all 3 bureaus - 14 months post discharge.

Thanks, this gives me hope. I'm current on all my bills, but I just know that I'll never be able to pay them if I don't file BK.

[ValleYum]

Thanks, this gives me hope. I'm current on all my bills, but I just know that I'll never be able to pay them if I don't file BK.

This forum was so valuable to us when trying to decide whether or not to file and once we did actually file. It is amazing how good life can be without all the financial stress in it. We are here if you need us!!

[ksgirl38]

This forum was so valuable to us when trying to decide whether or not to file and once we did actually file. It is amazing how good life can be without all the financial stress in it. We are here if you need us!!

Thanks. I can't believe how helpful and nice people on this forum have been. I've been on other forums before where that is not the case. I'm not so much nervous about the whole experience, but maybe just anxious to get rid of all that debt. I know that I'll have to make some changes and I'm a slightly nervous about not having a credit card to rely on in emergencies for awhile, but I guess I'll learn to get over it.