Have you sworn off credit cards??

[Bell30656]

I guess I'm the opposite, I worked hard to rebuild enough to get credit cards. However, my usage has changed. I use credit cards for gas purchases, grocery, dining, furniture, everything. However, I don't buy it if I don't already have the money in my bank account. My credit cards each are reporting a double digit balance each month. I watch my score on Credit Karma which is not exactly correct but is a good tool. Most importantly it is free.

Here's an example. I badly needed a dining room table. My dining room has been an empty area for over a year. My daughter and I eat at the counter in the kitchen or TV trays. It was time. So, I went to Rooms to Go who approved me for a $3500 limit. The old me would have bought... $3500 worth of furniture. The new me went to the Outlet Store in Forest Park and bought a great bar height table with four chairs for $400... The statement period ended the 16th... My first payment is due on 5/5 but I simply took $375 from my checking account and paid it. I'll let the $25 report for a month then pay it.

My Capital One is used for gas purchases all month. I pay it off down to $25-$30 before the statement ending date. My score has climbed back up rapidly because of this practice. I simply don't buy it if I don't already have the money.

Small Print - Except my car... I owe on that sucker for a while... but it is an investment... but it saves money... but, but, but

[drowning123]

I have sworn off, but I do also want to keep up my credit scores, so for that reason I am rebuilding my credit. I will not be making any more unnecessary purchases. I am spending only a little at a time on my credit card, even if I have the cash in my checking account, then pay it off 10 days before the bill is due. I only spend maybe $100, the most.

[Tater]

Wow, interesting thread and responses. My husband and I haven't filed bankruptcy but stopped using credit cards a year ago when I lost my job. We continued to pay on them until a couple of months ago. Honestly, it got to the point, do we want heat in the house or pay the cc companies? We used them as a means of survival for a long time with hopes of paying them off. Honestly, it was foolish of us to think that way and realize it's part of the reason we have to file bankruptcy. I can't say I miss them because I used them as a crutch for so many years. At first, it was difficult but it got easier as time went on.

I honestly don't know about credit cards in the future. We have gotten used to life without them but it's a double edged sword in today's society. We do want to build up our credit after our discharge but it's nothing we are going to rush into. We plan on building up a savings account first. It was interesting to read everyone's views though.

[JessMN]

I guess I'm the opposite, I worked hard to rebuild enough to get credit cards. However, my usage has changed. I use credit cards for gas purchases, grocery, dining, furniture, everything. However, I don't buy it if I don't already have the money in my bank account. My credit cards each are reporting a double digit balance each month. I watch my score on Credit Karma which is not exactly correct but is a good tool. Most importantly it is free.

Here's an example. I badly needed a dining room table. My dining room has been an empty area for over a year. My daughter and I eat at the counter in the kitchen or TV trays. It was time. So, I went to Rooms to Go who approved me for a $3500 limit. The old me would have bought... $3500 worth of furniture. The new me went to the Outlet Store in Forest Park and bought a great bar height table with four chairs for $400... The statement period ended the 16th... My first payment is due on 5/5 but I simply took $375 from my checking account and paid it. I'll let the $25 report for a month then pay it.

My Capital One is used for gas purchases all month. I pay it off down to $25-$30 before the statement ending date. My score has climbed back up rapidly because of this practice. I simply don't buy it if I don't already have the money.

Me too! And since I have the Cap1 rewards card I actually make money doing this (except I don't let anything ride - I pay it all off each month)

[Bell30656]

I think I've done fairly well in the recovery part... I have:

PayPal Smart Connect $500 (works with my PayPal MasterCard Debit)
Orchard Bank $320 (HSBC)
Best Buy MasterCard $300 (HSBC)
First Premier MasterCard $300
Capital One MasterCard $750
Rooms to Go $3500

Total combined owed on them right now? About $150 or less than 3% utilization. I do use the cards each month. I use each for different things but then pay the card off right before the statement ending date. One card is used to pay my electric bill each month, one to pay my car insurance, one to buy fuel all month, etc. They must like me because the Capital One started out with a lower limit and has had two increases without me asking.

[joshuagraham]

I miss not being able to buy something that I have not saved up for.

[kathlee29]

I haven't had a credit card in almost 2 years. I don't miss them at all. And will NEVER use one again. I will never lease a car again, take out a loan or use credit. People say never say never; I am saying it, Never. If I don't have the money -- I don't need it. Period. As far as building up good credit, I am not playing into that scam, because I won't need good credit when I pay cash for everything.

[BNKRPTinNC]

Haven't used one in over 4 years. 3 1/2 years in on chapter 13 and have had no need/desire for a credit card. The only plastic we have is a debit card and if the money is not in the account then we will do without until there is. It has made us consider our priorities and save like crazy for the unexpected. So far we have fared well and have had money available when that proverbial rainy day hit. I may make take out a loan for a big ticket item (house/car) but everything else is cash.

[papie]

I didn't file bankruptcy due to credit cards and I have no reservations when it comes to using them. I have to travel frequently and keep a fairly large sum in my checking account until my employer reimburses me. I do have a secured credit card but I'm not particularly fond of it.

As soon as my Chapter 13 is over getting a credit card is probably the first thing I'll do.

[TwentyTwelve]

I have one that I use for emergencies and online purchases only.

[tripbuddy]

My BK7 was discharged last July. I still haven't even applied for any credit. I spend a lot of nights in various hotels all over several states, and when I check in, I pay my room right away in cash, but give them my debit card and ask what their " hold policy" is. It varied, but I will say the most theyve ever held is $75. When I checked out the next day, the hold came off. Basically, it was "pending" on my account, but never changed to a "purchase."

Oh, I did have trouble at a hotel in Florida. I didn't prepay upon checkin, I went and paid the night before checkout (3 night stay). It was too late, they'd already charged the card I gave at checkin. Trouble was, I didn't have enough available in that account,I had withdrawn cash to pay the hotel! They fixed it, but it took days to credit back and checks bounced. The bank waived all but one fee, which the hotel paid. They had run the bills early or something.

Either way, I continue to travel with just my debit card. I just keep a lot more money in checking, instead of moving it all to savings.

Seriously, for hotel reservations, just call the hotel (not the 800 umber, but the actual hotel) and ask their debit card hold policy. You might be surprised that many hotels dont place any hold at all above your room rate!

[subking]

Have two since BK discharge with no fees, no secured cards, but high interrest rates about 18% on each. We only use them when necessary we do not buy luxury items or use them for things just cause we want something. We live much more budget aware and are careful on what we do buy.

We have a huge dental expense coming up next week for our daughter but haven't figured out how were gonna pay yet, I suppose it will be by CC but theres no choice she needs dental surgery and we can't watch her suffer in pain and not do anything.

[bbrooks123]

I have one credit card that is at 0% for a year, no annual fee and only $1000 limit. They tried to increase the limit once and I called and asked to have it lowered back down to the $1000 limit. $1000 is most I could pay off in one month comfortably, so I don't want a card with a higher limit than that. I only use the card when I travel for business and I need to rent a car. I also use the card if I am someplace that looks shady and don't want to give my debit card to pay for something. Since my BK 2 years ago, I started a savings account at a different bank then my primary checking each pay period I have part of my check automatically sent to that account. I use this account as my emergency fund. I don't use the credit card as an emergency fund. I had to file after a divorce from my ex who put everything on the credit cards. I spent 2 years paying on these cards every month and not having enough money to buy food, only enough money left at the end of the month to make sure my son was able to eat 3 meals a day. I ended up only eating once a day or every other day. Then one day I got a statement from the credit card company that they were doubling my interest rate which doubled the payment and I couldn't afford to pay them. I called them and they said I had not missed a payment once in the 7 years I had the card, but because of the debt to income ratio I went to after the divorce, I became a higher risk to them. I tried to tell them I couldn't afford that payment and would stop paying if they didn't lower it back down. I filed a few months later. I wish I would have filed sooner, the balances never went down I would have been paying on those another 20 years. My life is so much better now. I can afford the everyday expenses. I am paranoid of credit cards. Every day I am tempted to cancel the credit card because I know how bad they can mess up your life. But at the same time I have alot of self control and after the 2 years of struggling, I find that I have been become a money hoard. I will not buy something if I absolutely don't need it. Just got the car paid off a month ago (a year and a half early on the loan.... yay!!!) and as much as I want a new car I will wait until I can pay cash for one. Never paying anyone interest again.

[ksgirl38]

Hi! I'm new here, just had my first consultation with an attorney yesterday and the credit card issue is one of my concerns. Mainly because there are certain times when it's necessary - airline fees, hotels, etc. How did you get past this without credit cards? I've always been under the impression that taking out a credit card is one of the fastest ways to boost your credit, assuming you pay the balance in full every month. I'm concerned about rebuilding my credit quickly. Up until this year I relied on my credit cards quite a bit since I don't like to carry cash. That's changed and I know I'll have to learn to use cash more often, but how do you get through the bankruptcy period without this. In the past I've been used to paying for gas at the pump or putting groceries on my credit card and then just making that one payment a month.

[subking]

Either use your bank card or get yourself a prepaid credit card almost all stores carry them now.