Have you sworn off credit cards??

[ksgirl38]

I have a debit card, used it once, don't like them. I don't see how using a prepaid card helps build credit.

[TheBajan]

I'm so excited! My husband and I have been on opposing sides of this credit card issue. Yesterday, I convinced him not to try to get credit again after we are finished with our BK. I know we still have three years to go and he may change his mind before then but it's a small victory in my world!

Cheers!

[ksgirl38]

So just out of curiosity are most of you afraid to take out a new credit card because you are afraid you'll use it too much? I'm purely looking at it as a way to boost my credit score. Buy a tank of gas once a month, pay it off right away, repeat next month, etc. Maybe my goals are different than everyone else's, but to me having a credit card is just one way to get that good credit score back that I know I'm going to lose. Just curious. Thanks.

[TheBajan]

So just out of curiosity are most of you afraid to take out a new credit card because you are afraid you'll use it too much? I'm purely looking at it as a way to boost my credit score. Buy a tank of gas once a month, pay it off right away, repeat next month, etc. Maybe my goals are different than everyone else's, but to me having a credit card is just one way to get that good credit score back that I know I'm going to lose. Just curious. Thanks.

I don't know that it's a fear and I can't speak for others here but for myself.... it's a comfort zone. Prior to my marriage, I never had a credit card and that was comfortable for me. I had a student loan and a car loan and paid them both off early. I have never been comfortable using credit. I'm not from America and it's far more common to live on a cash basis in most other parts of the world. My husband has had credit since he was a teen. He doesn't feel comfortable without the 'crutch' that a credit card provides. We had originally compromised and decided we would get one credit card each with small limits after BK because that was a middle ground for us.

My concern is this.... in our marriage, my husband doesn't really get too involved in the day to day management of our finances. It took a VERY long time for me to get him to see the reality of our situation. He doesn't see the problem with debt as long as you can afford the monthly payments. So, throughout our 22 years together, we have been in debt, and gotten out of debt several times. He always promises me we will stay debt free but then we end up borrowing for something or other and before you know it, we are back in debt. Grant it.... it's not usually credit cards. In fact, until last October, we have never even missed paying a credit card and until just a couple of years ago we were religious about paying them in full every time we used them.

So to make a long story short, I don't believe that we (as a couple) have the disipline to use credit cards wisely and even though we did use them to our advantage for the first 20 years, they finally came back to bite us! I'm not comfortable with that. Among other things, I am fastidious about budgeting. Without dispute, we spend about 30% more on useless 'stuff' when we are using credit than when we are living on cash. There is a tremendous peace in me knowing that I'm living within my means and we are saving money for the first time in years.

It's a personal decision for each of us. There isn't a right or wrong to this unless you are just too undisciplined to learn from your mistakes. In that case, I would advise not getting credit cards any time soon. I'm not concerned about my FICO score. However, I'm closer to retirement and I am not looking at future purchases with credit. Best of luck to you.
The Bajan

[Tater]

Hi Bajan,

I liked how you put things in your post. I lived with a credit card for years while hubby was content without one. I could never see myself without that crutch but have been doing fine without them for the last year. Hubby and I haven't really discussed having credit cards after bk. It's not a rush for either one of us. Like you said, cash saves $$$ at the grocery store. I usually used my debit card but tried cash only on the last shopping trip. I was amazed at some of the stuff I wanted to buy but didn't because I didn't have the funds with me. I left the debit card and check book at home. I think I will continue on this route for awhile. The left over cash can go into our envelope system for a the rainy day fund.

After we are discharged, I am only going to have a student loan in my name that is around $1,300. The house and other vehicle will be in hubby's name. Just the though of continuing to live without credit cards for awhile is appealing to me right now. I'm sure we'll need one down the road to rebuild credit but is not a major concern for us right now. Being frugal is fun for us! I guess it's just a matter of personal choice. We have everything we need and truly want in life right now. I look at it this way now, if we don't have the cash, then we just don't need it.

[TheBajan]

Hi Bajan,
I look at it this way now, if we don't have the cash, then we just don't need it.

ditto to that!

[pamkev]

I'm so excited! My husband and I have been on opposing sides of this credit card issue. Yesterday, I convinced him not to try to get credit again after we are finished with our BK. I know we still have three years to go and he may change his mind before then but it's a small victory in my world!

Cheers!

Great news

[keepmine]

So just out of curiosity are most of you afraid to take out a new credit card because you are afraid you'll use it too much? I'm purely looking at it as a way to boost my credit score. Buy a tank of gas once a month, pay it off right away, repeat next month, etc. Maybe my goals are different than everyone else's, but to me having a credit card is just one way to get that good credit score back that I know I'm going to lose. Just curious. Thanks.

One thing you need to understand. For a few years post bk your credit score is irrelavant because, there are quite a few lenders who won't touch you with a recent bk regardless of your score. You just won't meet their lending criteria.
I filed my bk in Oct. of 05. In late Aug. of 07 I really needed a car loan. I applied at a bank where I'd been a customer for decades . They weren't a creditor in my bk but, I was declined due to a recent bk. They required 2 years from filing to consider funding a loan.
Your best bet post bk is just be sure the things that created the bk are fixed. Make sure you have a job with health insurance benefits, carry disability insurance, be sure your auto insurance is adquate and, max out your 401K.
You'll be pretty vunerable for awhile post bk. Be sure you protect yourself, save for retirement and have money in the bank. Rebuilding credit should be a backburner issue.

[msm859]

One thing you need to understand. For a few years post bk your credit score is irrelavant because, there are quite a few lenders who won't touch you with a recent bk regardless of your score....... Rebuilding credit should be a backburner issue.

I would disagree. The sooner you start to rebuild your credit the better. I am a 1 1/2 years out since filing. Started with a secured credit card, got another secured and now have 2 unsecureds, the last one a rewards card with a $4500 limit. Also, refinanced a car loan with a 3.9% interest rate. In 6 months my lease on my car will end so I will need to buy a new car - I knew that 2 years ago. If I had waited I would probably get a worse rate which would ultimately cost me more. Hopefully, we all learned from this - one lesson is don't get caught up wasting a lot of money on Interest! I pay my cards in full each month. Now with a rewards card they will be paying me to spend my money. Don't be afraid - be smart.

[ksgirl38]

One thing you need to understand. For a few years post bk your credit score is irrelavant because, there are quite a few lenders who won't touch you with a recent bk regardless of your score. You just won't meet their lending criteria.
I filed my bk in Oct. of 05. In late Aug. of 07 I really needed a car loan. I applied at a bank where I'd been a customer for decades . They weren't a creditor in my bk but, I was declined due to a recent bk. They required 2 years from filing to consider funding a loan.
Your best bet post bk is just be sure the things that created the bk are fixed. Make sure you have a job with health insurance benefits, carry disability insurance, be sure your auto insurance is adquate and, max out your 401K.
You'll be pretty vunerable for awhile post bk. Be sure you protect yourself, save for retirement and have money in the bank. Rebuilding credit should be a backburner issue.

I've already done all those things. That's kind of why rebuilding credit is my top priority.

[ksgirl38]

I would disagree. The sooner you start to rebuild your credit the better. I am a 1 1/2 years out since filing. Started with a secured credit card, got another secured and now have 2 unsecureds, the last one a rewards card with a $4500 limit. Also, refinanced a car loan with a 3.9% interest rate. In 6 months my lease on my car will end so I will need to buy a new car - I knew that 2 years ago. If I had waited I would probably get a worse rate which would ultimately cost me more. Hopefully, we all learned from this - one lesson is don't get caught up wasting a lot of money on Interest! I pay my cards in full each month. Now with a rewards card they will be paying me to spend my money. Don't be afraid - be smart.

Thanks, this gives me hope. I'm lucky enough to have a car loan with 0% interest so really the next step for me is to try rebuilding through a credit card. Before unemployment I was the same way - paid it off every month in full. My credit card companies used to hate me. I guess I want them to hate me again. LOL I'll just be glad to get rid of the debt I have now so I can move on with my life and start over.

[mountanddo]

I've already done all those things. That's kind of why rebuilding credit is my top priority.

But you haven't even filed yet or even figured out if you are filing chapter 13 or chapter 7 and just stopped using your current cards a few weeks ago. You are already wanting to step back into the fire and you haven't even stepped out of it yet. If you are current on everything and just stopped using your cards a few weeks ago and have done all the things that keepmine has suggested can I ask why you are even filing in the first place? How much credit card debt do you have? If you have been able to keep up with the payments it might be more to your advantage just to figure out how to pay what you have and stop using the cards. You said yourself you have a high credit score so why bother getting it all discharged and going through the trouble of trying to rebuild credit. Your attitude is that you don't like cash or debit cards. It is going to be pretty tough on you if you don't learn to use both these options. It isn't like you are guaranteed to get enough credit cards right after discharge to not have to use cash. Perhaps people are being a little harsh because it doesn't sound like you are struggling just that you don't want to pay.

[ksgirl38]

But you haven't even filed yet or even figured out if you are filing chapter 13 or chapter 7 and just stopped using your current cards a few weeks ago. You are already wanting to step back into the fire and you haven't even stepped out of it yet. If you are current on everything and just stopped using your cards a few weeks ago and have done all the things that keepmine has suggested can I ask why you are even filing in the first place? How much credit card debt do you have? If you have been able to keep up with the payments it might be more to your advantage just to figure out how to pay what you have and stop using the cards. You said yourself you have a high credit score so why bother getting it all discharged and going through the trouble of trying to rebuild credit. Your attitude is that you don't like cash or debit cards. It is going to be pretty tough on you if you don't learn to use both these options. It isn't like you are guaranteed to get enough credit cards right after discharge to not have to use cash. Perhaps people are being a little harsh because it doesn't sound like you are struggling just that you don't want to pay.

I never said anything about not wanting to use cash. You can have a credit card and not use it. I have the willpower to do that, but maybe you don't. I have 4 department store credit cards now and in the past year I've used all of those exactly twice and paid those balances in full. It's not always about not wanting to use cash. Sometimes the benefits you get are just better. I only want the credit card just to start the rebuilding process. It's the only line of credit I can apply for and it's an easy way to build up your credit score. I'm sorry, but I guess I disagree with the majority of people here. Having a credit card is another line of credit that can help you in the long run. I'm looking at the bigger picture. No one says you ever have to charge everything you buy. Usually one or two transactions a month is all it may take.

Unfortunately I have more credit card debt that I can pay. I've spent the past 4 years trying to pay it off and gotten nowhere. I feel like I'm not making a dent in it. If anything the balance just gets transferred from one card to another. I can't keep up with the payments and still have enough to live on. It's one or the other. I make a $400 payment and on the next statement I get a $200 interest charge. Unfortunately it's just not working. I don't want to be 60 with this same debt.

[mountanddo]

I never said anything about not wanting to use cash. You can have a credit card and not use it. I have the willpower to do that, but maybe you don't. I have 4 department store credit cards now and in the past year I've used all of those exactly twice and paid those balances in full. It's not always about not wanting to use cash. Sometimes the benefits you get are just better. I only want the credit card just to start the rebuilding process. It's the only line of credit I can apply for and it's an easy way to build up your credit score. I'm sorry, but I guess I disagree with the majority of people here. Having a credit card is another line of credit that can help you in the long run. I'm looking at the bigger picture. No one says you ever have to charge everything you buy. Usually one or two transactions a month is all it may take.

Unfortunately I have more credit card debt that I can pay. I've spent the past 4 years trying to pay it off and gotten nowhere. I feel like I'm not making a dent in it. If anything the balance just gets transferred from one card to another. I can't keep up with the payments and still have enough to live on. It's one or the other. I make a $400 payment and on the next statement I get a $200 interest charge. Unfortunately it's just not working. I don't want to be 60 with this same debt.

Well obviously you don't have the willpower or you wouldn't have more credit card debt than you can pay. If you had willpower you would of had an emergency fund to cover your expenses when you became unemployed and wouldn't of had to use those credit cards. So you really aren't better than anyone else here.

[ksgirl38]

Well obviously you don't have the willpower or you wouldn't have more credit card debt than you can pay. If you had willpower you would of had an emergency fund to cover your expenses when you became unemployed and wouldn't of had to use those credit cards. So you really aren't better than anyone else here.

I was unemployed twice within 3 years, once for 9 months. There's not a lot you can do to prepare for that.

I never said I was better than anyone else here, you did.