List your re-established credit since BK Discharge!

[HopeFaith]

I'll Start....

Chapter 7 BK Discharged 01/18/08

• 10/07: Zions Bank Auto Loan: 20.99%/6 Yrs - $14,500.00 (Pre-Discharge Approved)
• 01/08: Orchard Bank CC: $300.00 CL
• 01/08: Household Bank CC: $300.00 CL
• 05/08: Capital One CC: $2,000.00 CL - (CLI to $2,500.00 after 90 days)
• 06/08: Hooters MC: $1,100.00 CL
• 08/08: Target Red Card: $200.00 CL

[Pinkie86]

Obviously I don't have any new credit yet (since I just filed) but I wanted to say that this is a pretty encouraging thread.

Personally I don't want to look at a credit card for a long time, but it's good to know that when it's time to rebuild my credit, it seems like it'll be easier than I thought.

[AngelinaCat]

[yoyoma51]

Discharged 2/28/08

-Local Credit Union: $1000 Visa 3/2008

-Capital One Platinum Master Card: $3000 5/2008

-Local Credit Union: Car loan for $10000 (w/$1800 down) 6.24% - 60 mos. 6/2008.

-Local Credit Union: Student Loan for wife to get pharmacy doctorate: $9000 (per year, credit dependent, for living expenses, 5% interest, deferred payments until 6 mos. past graduation). 6/2008

-Federal Student Loans (not credit dependent): $11000 so far, expect about $70000 total, 6.8% interest, deferred payments payments until 6 mos. past graduation. 6/2008

We're on track, easier than we thought it would be. Luckily found a great local credit union who understands.

[HHM]

That many trade lines is actually counter-productive to establishing credit.

And that car loan is highway robbery. I assume that you probably "needed" the car and had no other choice, but jezz, talk about the worst possible financial decision (paying $10k in interest on a $14K loan, ouch), and let me guess, I bet you plan on refinancing, which, ironically, will cost you more money than simply finishing the term of the existing loan.

At this point, you need to dump any card that charges an annual fee.

Time, more than anything else, heals your credit.

Also, student loans do nothing for credit scoring.

[Flamingo]

HopeFaith - do you really truly need all those credit cards?

[fltoo]

Even though my cc debt is due to a failed business, I still blame myself for using credit to keep a sinking ship afloat. I should not have been so damn dumb.

I will never charge anything ever again and will wait until I can save the cash. I do not understand the mentality of getting excited about securing a credit card or cards after BK.

But, there is a bright side. When the second BK occurs, one can blame it on the predatory cc companies for extending credit to post BK customers!!!

[mgmadara]

Discharged 02/14/2006

Lowes - $7500 - survived the bankruptcy
WAMU - $4000 - 06/2008

I resisted getting a credit card for more than 2 years after bankruptcy and would advise people to do the same if they can. We also have a mortgage, 2 student loans, and 2 good cars so we really didn't need to rebuild quickly. Time really is the best credit repair tool.

[yoyoma51]

HHM-

We didn't take out student loans to help our credit scores. We took them out because we had to...so my wife can get a job making well into the six figures when she is done with school (she already has a MBA).

Plus, the student loans will be repaid for her when she gets her job. Most companies offer student loan repayment (forgiveness) to new pharmacists with a doctorate (very in-demand profession). All we will be responsible for is the taxes, since the money to pay off the loans is a 'gift' from the employer.

[HHM]

I didn't think you took out the student loans to improve credit, but since student lonas were mentioned, I thought I would simply point that fact out, lest other readers get the wrong impression.

[epiphany]

HHM-

We didn't take out student loans to help our credit scores. We took them out because we had to...so my wife can get a job making well into the six figures when she is done with school (she already has a MBA).

Plus, the student loans will be repaid for her when she gets her job. Most companies offer student loan repayment (forgiveness) to new pharmacists with a doctorate (very in-demand profession). All we will be responsible for is the taxes, since the money to pay off the loans is a 'gift' from the employer.

I think HHM was talking to the original poster (oops, maybe not) and I must say I have to agree.

I for one, don't want any new credit ever again. I will be happy if my Macy's, Mervyn's and Fingerhut, which all have zero balances, survive the BK, but if they don't no biggie. I haven't used that Mervyn's card in over ten years and had no idea it was even still open until I recently viewed my credit report.

The only credit I will even think about seeking in the next few years is one for a car loan, as I am driving a '96 Toyota (thank goodness for good gas mileage) with many miles on it. But even so, I intend to drive that for at least another two years, car gods willing.

ep

[HopeFaith]

I think it's great that everyone is trying to avoid using credit. I would also love to someday pay for a car or home with cash... my Husband and I are saving every last dime, to ensure we don't ever NEED credit! However, two things in the meantime;

A) My existing bank (Zions) said they will refinance my car at 7.14% after 12 months post-discharge (January 2009) if we have established at least 5 new tradelines since discharge, and have 0x30 on all trades (one must show at least a 12-month history). This is why I was sure to build up my 5 tradelines. I carry less that $50 balance on each card, and pay about 2x the minimum per month - just to establish some repayment history, to keep my utilization low.

B) My Husband and really want to own a home in about a year or two, and want to make sure we have re-established credit when it comes time to apply. Renting is the pits. This is the 3rd home we've lived in this year alone... we were forced to move out due to foreclosure on the other two. We live in AZ, and foreclosures are happening in every neighborhood - rentals are hit hardest. We'd love to have our own home and not be worried that we'll get kicked out again with only 2 weeks notice. (It's been a hectic year!)

Thanks for everyone's feedback... was just hoping to provide some encouragement by posting re-building success stories in this thread. This is the "Rebuilding Credit" forum, right? :-)

[epiphany]

This is the "Rebuilding Credit" forum, right? :-)

Well sure, and there's nothing wrong with that. But you really didn't expect a free sugar coat did you?

Some don't think it's healthy (myself included) to rebuild your credit at the rate and rates that you have. People are just trying to help. You can take it or leave it but there is no offense intended.

Best of luck to you.

ep

[BK2008]

I wonder if HopeFaith could post the rates she's getting on the credit cards.

Was wondering what they were with only 6 months after Bk discharge.
I haven't gone near an application yet...fear of denial will absolutely stop me!

[HopeFaith]

I wonder if HopeFaith could post the rates she's getting on the credit cards.

Was wondering what they were with only 6 months after Bk discharge.
I haven't gone near an application yet...fear of denial will absolutely stop me!

Orchard Bank CC: $300.00 CL (8.65% - $35 AF)
Household Bank CC: $300.00 CL (9.95% - $35 AF)
Capital One CC: $2,000.00 CL - (CLI to $2,500.00 after 90 days) (0% Interst for 12 months - No AF)
Hooters MC: $1,100.00 CL (18.24% - No AF)
Target Red Card: $200.00 CL (20.99% -No AF)

Only carrying $50-$100 balances on each, just to get some payment history reporting. I hate the HSBC cards... but they were my first, and I like that these have been reporting since opening to each of the CB's. These were the only ones that charged AF's.