CC after Bankruptcy

[Choices2005]

What is the name of your state? IL

It'll be a year since my Bankruptcy was d/c on July 5th. Since then I've been doing well and have kept my nose clean. I have a 2005 car that I have been paying on time (car was purchased before filing) and I have a student loan I am still paying down.

My mom and boyfriend think I need to get a credit card and the lawyer told me to get one in a year. I was going to apply for a Chase gas card but it said I had to have no bankruptcy in my credit history.

I'm wondering if anyone who has gotten a credit card after bankruptcy can give me any advice. Which credit card company is best to choose? Which card am I most likely to get approved for? And will the interest be super high? Also, is it better to get a cc with my bank? (I am with a credit union) I'm apprehensive cuz I don't want them to know I filed. (Or do they already?)

Thanks

 

[genivieve]

What is the name of your state? IL

It'll be a year since my Bankruptcy was d/c on July 5th. Since then I've been doing well and have kept my nose clean. I have a 2005 car that I have been paying on time (car was purchased before filing) and I have a student loan I am still paying down.

My mom and boyfriend think I need to get a credit card and the lawyer told me to get one in a year. I was going to apply for a Chase gas card but it said I had to have no bankruptcy in my credit history.

I'm wondering if anyone who has gotten a credit card after bankruptcy can give me any advice. Which credit card company is best to choose? Which card am I most likely to get approved for? And will the interest be super high? Also, is it better to get a cc with my bank? (I am with a credit union) I'm apprehensive cuz I don't want them to know I filed. (Or do they already?)

Thanks

Umm you filed for bankrupty BECAUSE you cant PAY YOUR BILLS. You dont need a credit card, you need a bank debit card with a over draft protection. This is the problem with America. If you cant pay for it cash, you dont need.

 

[Choices2005]

Anyone else?

I am getting a card to help re-establish credit. I was told by the lawyer and everyone else I know that I should get one. If for nothing else but to pay bills each month and keep a small balance. This way I can show the creditors a history of me being able to hold a balance and keep the account in good status. I know I don't need one for buying things and don't plan on doing that.

 

[Who's Liable?]

Umm you filed for bankrupty BECAUSE you cant PAY YOUR BILLS. You dont need a credit card, you need a bank debit card with a over draft protection. This is the problem with America. If you cant pay for it cash, you dont need.

wow... that is one of the stupid things I have heard on this forum... Tell me how buying things with cash improves your credit score?

Without knowing the exact reason for filing BK, who are you to assume it was because he didn't pay bills? He might have had a HUGE medical bill that forced him to file!

So you're saying that if you can't pull the 12K+ out of your bank account to buy a car, you don't need it? mmmm.... Remember that the next time you get in your financed car to go to work...

HSBC, Cap 1, Hooters, Juniper all have CC that they give to people who filed BK... Head over to crediboards.com for more information... They(CC) will most likely start you at a limit of $300, and interest that will vary between %10-20... If you pay your bills on time, keep a low utilization, etc., you will see an improvement in your limit and interest...

You DO want to get CC's post BK to re-establish your credit score!

 

[genivieve]

wow... that is one of the stupid things I have heard on this forum... Tell me how buying things with cash improves your credit score?

Without knowing the exact reason for filing BK, who are you to assume it was because he didn't pay bills? He might have had a HUGE medical bill that forced him to file!

So you're saying that if you can't pull the 12K+ out of your bank account to buy a car, you don't need it? mmmm.... Remember that the next time you get in your financed car to go to work...

B]Well gee a huge medical bill bankrupty. LOL That would tell me (self employed exempt) the person who has maxed out their credit cards, does not have a great job with benefits. Case in point, this person therefore should not be using credit cards because they cannot pay for them!! BECAUSE THEY DONT HAVE THE JOB DAHHHH I am sure you enjoy your lovely high interest rights because of morons like this. You cannot follow the Jones all the time. Because sooner or later the repo man is going to come.[/B]


Yes, I come from money. Lots of money. But there was a time I did not have my families money. I worked three jobs, bought a junk pickup truck for cash and starting a moving company piece by piece. I never used credit because I had none. I now own several businesses. I live in a modest house, because I paid cash for it. My cars, my horses, my barns,my vacations are all paid for by cash.

 

[Ladynred]

Lucky you. Most people in this country are not that well off.

In order for the average joe citizen to get a house, you MUST have credit and that means you must establish credit to get credit. In the OP's case, it is IMPERATIVE that he/she establish new credit to REBUILD post-bankruptcy.

I suggest you go over to www.creditboards.com - you'll find a TON of information on rebuilding your credit post-bankruptcy.

Paying cash for everything any more, in this credit-saturated system, is just NOT practical anymore. Companies pull your credit for everything from car loans, car insurance to dental work. If you have no credit - ie. you've always paid cash for everything - then you will not get loans or financing because the industry sees you as a HUGE risk - a big fat UNKNOWN as far as whether or not you can or will actually pay them back.

I agreed that people need to stop living on plastic, save money and PAY CASH for the "I want' items.. but I doubt I'll ever see that in my lifetime ever again. The 50's are long gone.

 

[Who's Liable?]

B]Well gee a huge medical bill bankrupty. LOL That would tell me (self employed exempt) the person who has maxed out their credit cards, does not have a great job with benefits. Case in point, this person therefore should not be using credit cards because they cannot pay for them!! BECAUSE THEY DONT HAVE THE JOB DAHHHH I am sure you enjoy your lovely high interest rights because of morons like this. You cannot follow the Jones all the time. Because sooner or later the repo man is going to come.[/B]


Yes, I come from money. Lots of money. But there was a time I did not have my families money. I worked three jobs, bought a junk pickup truck for cash and starting a moving company piece by piece. I never used credit because I had none. I now own several businesses. I live in a modest house, because I paid cash for it. My cars, my horses, my barns,my vacations are all paid for by cash.

You still have not answered my simple question:

How does paying cash for everything improve your credit score?

 

[garrula lingua]

Hey, genivieve's point was: she doesn't need a 'credit score'. Her cash covers what she wants to buy. She's right.

How the heck can we ever retire when we continue to live above our means (and that's usu what cr cds convince people to do).

Good job, genivieve.
I don't think many of us (at any point in our life) will be able to say we're debt-free.

 

[Ladynred]

she doesn't need a 'credit score'.

That's what you think. If she ever finds herself in the position of needing a personal loan or credit of some kind, she could have a very hard time getting it with 'no credit score' or a serious lack of credit history.

The system is rigged, no doubt about it. People who are responsible, savers, who can pay cash for everything, including a house (which is rare), are actually penalized by our credit system. Even people who use credit and pay their balances are penalized ! Credit card companies call those people 'freeloaders' and 'deadbeats' because they cannot make any money off of them. Some now include penalty fees in credit card agreements for people who actually don't carry a revolving balance. It's twisted, it's wrong-headed - but that's what we're stuck with.

The savings rate in the US is at an all-time low - lower than its been since the Depression. Unless and until there's some drastic change in our society, the 'gotta have it NOW' syndrome, this isn't likely to change.

 

[TigerD]

The savings rate in the US is at an all-time low - lower than its been since the Depression. Unless and until there's some drastic change in our society, the 'gotta have it NOW' syndrome, this isn't likely to change.

There will be -- it'll be another depression.

 

[genivieve]

You still have not answered my simple question:

How does paying cash for everything improve your credit score?

This is the problem with America. You people are all concerned with credit, buy sh#t you dont need, and carry on like your all millionares. Heres a little hint. If you dont have the cash you dont need it... You dont need credit for sh#t.

Do you honestly think that a person who has no credit is going to get a better rate on car insurance then a person who has filed for bankrupty, and had a bad credit profile for the last ten years. NOT. Insurance companies are looking for people who do not owe Tom Dick and Harry and are in debt. These are the people who are burning down their houses and killing their wives for money. --- You better stop your statement that is burning in your head because through the car dealship we owned I am VERY familiar with insurance

Next avoiding interest rates, late payments fees you would have the ability to pay cash for items. Thus collecting assets. So IF the time ever comes you could borrow againist your house, your car, using them as collateral.

Third, we all know how everyone loves those little shopping sprees around x-mas. Paying cash for items would make you think twice about ringing up good old uncle dan's new tv. IT is a common known fact that when people use cash, they in fact think not once not twice but three times about purchasing junk they dont need.

Yes, it is nice to have at least one credit card for emergencies. NOT two or three. The limit should be marginally. As I said before a debit card with an overdraft is the best way to go.

 

[genivieve]

That's what you think. If she ever finds herself in the position of needing a personal loan or credit of some kind, she could have a very hard time getting it with 'no credit score' or a serious lack of credit history.
.

LOL my assets including the horses are way over 6 million. I can walk into any bank in my city, ask for a certain amount of money and never fill out an application.

Two years from now the OP is going to be on here complaining about all debt there in again and wondering how they can go about filing for another bankrupty. MARK MY WORDS****************************......

GEE its makes me wonder why they have changed the bankrupty laws??????

 

[Ladynred]

GEE its makes me wonder why they have changed the bankrupty laws??????

They changed the bankruptcy laws because the credit and banking industry BOUGHT IT. MBNA piled MILLIONs into the coffers of Senators and Congressmen and give a few of them 'deals' that no one would EVER get on their own just to shove that ridiculous legislation thru. Guess what -- what they wanted and paid for IS NOT WORKING. The studies as showing that they bankrutpcy judges, lawyers and law professors were RIGHT when they said the problem of bankruptcies was NOT credit cards. The NUMBER ONE cause of bankruptcies is CATASTROPHIC ILLNESS leading to huge medical debts that most poor and middle class working stiffs cannot ever hope to pay in their lifetimes !

6 Million ? woo hoo.. but you are a rarity in the US.

I don't disagree that people should live on cash as much as possible, but you are DEAD WRONG about no one needing a credit score and history. A person who pays for everything cash, has savings and money to burn, but no credit history, is going to get RAPED on things like car insurance rates from those insurance companies who base their rates on a person's credit rather than their driving history. It is NOT RIGHT to be penalized for NOT using credit, but that is EXACTLY what happens.

Do you honestly think that a person who has no credit is going to get a better rate on car insurance then a person who has filed for bankrupty, and had a bad credit profile for the last ten years. NOT.

Again you are WRONG and obviously have NO IDEA how it actually works. People who have had big debts and worked diligently for years to pay off everything are often outraged that a person 1 year out of bankrutpcy actually has BETTER CREDIT SCORES than they do --- and they 'did the right thing' and paid everything off. I've read it time and time again on 4 different credit-related boards, it is not a myth.

Since you obviously have nothing to offer here and cannot relate to any of the problems in these particular debt-related sections, maybe you should take your arrogant $6 Million attitude to some other section where you can make yourself feel better by berating people who do not have $6 Million.

 

[genivieve]

6 Million ? woo hoo.. but you are a rarity in the US.

I RAPED on things like car insurance rates from those insurance companies who base their rates on a person's credit rather than their driving history. It is NOT RIGHT to be penalized for NOT using credit, but that is EXACTLY what happens.

Your in La la land again. I ran a multi million dollar car dealership with ties to six insurance companies. The people who get the higher rates are the ones in debt! They are the ones who bump off their wives, get into fender bender and sue for medical. You ever had a medical lawsuit? The first thing they do is supeona your profile, your bills to find out how much debt or payments your in.

So your saying this idiot OP who already is establishing credit with a car loan and a student loan needs five more credit cards. Sure what the hell. You can never have too many payments right? LOL

Again you are WRONG and obviously have NO IDEA how it actually works. People who have had big debts and worked diligently for years to pay off everything are often outraged that a person 1 year out of bankrutpcy actually has BETTER CREDIT SCORES than they do --- and they 'did the right thing' and paid everything off. I've read it time and time again on 4 different credit-related boards, it is not a myth.:

Sure they get bankrupty people get better credit. Why not? They have another 7 years to rack up some more debt to file bankrupty again. Give me a break, I am sure you just love those higher interest rates now because of people like this.

Since you obviously have nothing to offer here and cannot relate to any of the problems in these particular debt-related sections, maybe you should take your arrogant $6 Million attitude to some other section where you can make yourself feel better by berating people who do not have $6 Million. :rolleyes

Oh you really are naive. You need to read my previous post. For the last 9 years I have donate over 30 hours per a week in a homeless shelter. I now drive over 500 miles a week for AIDS patients. I have given, donated more money then you will make in a life time. Months ago a girl I had befriend from the homeless shelter dumped her baby off at my house. And still has not come back to get her. She rather smoke crack.

I own over 40 dogs that would have been put down because there were no homes for them at the SPCA. I have over 20 horses who just mow my pastures because people would rather sell them for horse meat because they are no longer winning stakes. Dont give me your sh@t. You wont within come 1/10 of helping others as I have

 

[TigerD]

This is quite possibly one of the most useless threads I have read.

LNR: When you wrestle with pigs all you get is dirty -- and the OP gets nothing.

genivieve: You are wrong on many levels.

I am about to do one thing I haven't ever done on a board:

My credit score with Trans Union is 746. I make in the low six figures and expect to make in the mid six figures next year. When my book store closed, I paid everybody. I didn't go bad on my debts and I paid many that I could have avoided through my corporation. I paid them because it was the right thing to do.

I don't begrudge anybody availing themselves of the bankruptcy court. It is there for a reason. As for rebuilding credit -- I have been there and done that and it isn't easy. However, credit scores are critical to most things in everyday life now. While I admire anyone that goes through life paying with cash for everything, it isn't practical or smart to do so.

Your credit score will affect your car insurance rate. Statistially, people with lower credit scores have more accidents and gaps in insurance coverage. Your credit score will affect your being required to place deposits on utilities and telelphone installations. It matters.

For the OP: You are going to have to start with a secured card or secured bank loan. Good luck. Feel free to PM me if you want specific tips.

DC