Credit rebuild newbie questions

[Brendon]

Hey guys, this forum has been great for anyone going thru BK...This forum is the one thing that will actually keep a person sane. Thanks.

A few questions:

1) What is it that everyone is disputing on their reports to raise their scores? I look at my EX report, and it is all pretty accurate. I have not yet looked the other 2.

2) My EX score is at 610, and I just received my discharge, but some of the better CC options (as I have read on the forum) are cards I charged off during the BK. Not a lot of money, but it is charged off like GE Money Bank ($300) and Chase ($0 but they closed it anyway) I am afraid applying to either these will be an automatic "DENIED" Do you think this is true?

3) When applying for a CC, how much impact does your salary have on the application? I have an annual income that I believe is above average and now I have no debt (thanks to the BK)

I have not yet applied for any CC but I need to soon to book travel for work etc.

I just need some help to understand all of this. Like many others, I have not had to deal with this kind of stuff in the past, but bankruptcy happens to the best of us. Thanks for the help guys

[BassBoy]

Hey guys, this forum has been great for anyone going thru BK...This forum is the one thing that will actually keep a person sane. Thanks.

A few questions:

1) What is it that everyone is disputing on their reports to raise their scores? I look at my EX report, and it is all pretty accurate. I have not yet looked the other 2.

2) My EX score is at 610, and I just received my discharge, but some of the better CC options (as I have read on the forum) are cards I charged off during the BK. Not a lot of money, but it is charged off like GE Money Bank ($300) and Chase ($0 but they closed it anyway) I am afraid applying to either these will be an automatic "DENIED" Do you think this is true?

3) When applying for a CC, how much impact does your salary have on the application? I have an annual income that I believe is above average and now I have no debt (thanks to the BK)

I have not yet applied for any CC but I need to soon to book travel for work etc.

I just need some help to understand all of this. Like many others, I have not had to deal with this kind of stuff in the past, but bankruptcy happens to the best of us. Thanks for the help guys

Answer to question #1: What we dispute is any account that was included in our BK that is not reported as such, accounts closed and outstanding balances.

Answer to question #2: I would advise to NOT apply with any CC's that were included in your BK. That's not to say that they would automatically deny you, but there are ways for them to attempt to recover the loss from your BK (i.e., very high interst and fees).

Answer to question #3: Most likely, you'll only be approved for a secured CC or a low limt unsecured CC, so you can easily be accepted, even with an average salary.

[Brendon]

Thanks BassBoy-

1) I have accounts listed that were closed, that I closed prior to BK several years ago. Are you saying I should get those removed and that it will help my scores? What about a cc that had a 0 balance, but they closed it due to the BK, should I try to have it removed?

2) thanks

3) I was hoping that my salary (just over 100k) would help in some form or fashion (I have more disposable income, so I should be able to repay easier was my thought) Is this not considered?

Sorry for the dumb questions, I am just trying to understand my situation fully. Perhaps I should work on my scores until I absolutely have to have a new credit card....

[BK'd-Betty]

Hi Brenden - the higher salary will probably help you get higher limits on the sub prime cards that you are able to obtain - however, you won't be able to start geting "prime" credit cards until the BK has aged (at least 2 years) and you have re-established a payment history (unfortunately, that will have to happen with the sub prime cards).

With a salary like that - I would recommend by passing the sub-prime unsecured cards as they carry high fees and go get yourself a National City secured card, which reports as unsecured to all 3 CRA's - the more money you put in a savings account, the higher the limit will be and the better it will be on your credit report. (plus you'll be earning interest on the savings account)

Try not to use more than 20% of you available credit, as high utilization will tank your credit scores.

[BassBoy]

Thanks BassBoy-

1) I have accounts listed that were closed, that I closed prior to BK several years ago. Are you saying I should get those removed and that it will help my scores? What about a cc that had a 0 balance, but they closed it due to the BK, should I try to have it removed?

2) thanks

3) I was hoping that my salary (just over 100k) would help in some form or fashion (I have more disposable income, so I should be able to repay easier was my thought) Is this not considered?

Sorry for the dumb questions, I am just trying to understand my situation fully. Perhaps I should work on my scores until I absolutely have to have a new credit card....

Answer to question #1: You do not have to have the accounts removed. Just so long as they are reported correctly. I believe you can not have an account removed from your credit report if it's less that 7 years and if the information is true (i.e., was your account). If you have accounts that were open, used and closed before your BK, I would say to leave them on your report because it does show that you've had a good payment history.

Answer to question #3: With a six figure income, I would say you have the means to pay, but with a recent BK, you still may be looking at higher than normal interest rates and/or fees. And like I said, you may have to get a secured card, which is what most of us will recommend because of the lower interest rates and low/or no fees.

Remember this Brendon, the only dumb questions are the ones not asked. We will do our best to answer whatever questions you have.