Just got approved for Cap1 CC!

[CCsAreEvil]

Agree a lot with what Amy said. Unfortunately, credit is somewhat forced into our lives because of all those factors: insurance rates, buying a car, house, getting a job, security clearance, utilities. This may not be always the case, but it seems to happen more often than not. In a perfect world, "credit" probably wouldn't exist. I'm sure "credit" has been around as long as man has. "There's always someone who owes someone else something".

If credit did not exist, how would society function? Of course, individuals like some in this thread have made it somewhat of a "pact" to refrain from dealing with the "system" of credit (especially post-BK). That's fine if it works for you. It doesn't work for everyone (based on specific circumstance, job profession, location, etc).

Or maybe we need to start passing laws (I'm sure they exist in some states already anyways) that do not allow insurance companies, potential employers, etc, from using our credit checks as a factor for their decisions. Make national laws?

[Amy26]

I just figured that more people on a BK forum would hate debt after what they just went through. Boy was I wrong.

I can't say I hate debt. I don't mind it for the right reasons. Call me wierd or let the flames begin, but I don't mind making payments on a car...even if it means I pay more for it in the long run. I also don't mind renting a home... technically that is debt as well since you sign a lease for a certain period and you have to pay a certain portion of that debt off every month. I boarded the "OMG you're throwing away money renting you should buy a house" train... and you know where it got me? Into bankruptcy. My finances were not crazy out of whack and I wasn't spending crazy money on things I didn't need and charging up a lot of debt. I mostly BK'd because of my stupid house....that and getting laid off for over 8 months with no income whatsoever. Sure, I had a reserve of money saved up to pay my bills...but surely not for 8+ months. Perhaps other people have this ...but I didn't. The day I filed I was not behind on any of my credit cards or loans... just my home.

I also don't mind charging some clothes for work and taking a few months to pay it off. I get to save more of my cash on a paycheck to paycheck basis and I get what I need now to look presentable instead of 3 months from now if I strictly saved up for it.

And yes as someone else said, rebuilding credit is not just so you can get lots of credit cards again and just for buying houses... unfortunately credit flows over into our personal lives in other ways. IE: my car insurance went up by like 300 dollars a year just because I filed for bankruptcy. Which is just stupid... but my state allows for credit to influence insurance rates... it affects our abilities to get jobs and clearances... hell even utlity companies check your credit. You need good credit to get electric...

So, do I hate credit? yes. Do I need it? yes. Do I hate debt? Not within reason. Do I think less of myself because I don't mind paying interest on balances? no.... you may think its stupid and illogical... but to you. Do I know the consequences to carrying balances? yes. Do I accept them? yes.

Life is full of risk every day. Getting in your car is a terrible risk we take every day...yet, we accept it. Flying, deciding to call in sick to work when you're not, playing the stock market, 401k's, eating too much... everything we do is a risk. Its all about accepting the risk or not. Judging other people for it... not so much.

[debtnomore]

i see in your sig that you hate debt, and rightly so

however, having a credit card does not mean you have debt

i have 2 ccs with $2800 line open and no debt...i only have debt if I use them and don't pay them off immediately

heck, one card is firestone and i've never been there in my life...i'll likely never use it so will never have a chance to use it to get into debt...it's just sitting there open, raising my FICO score slowly but steadily over time

i also have a gas card separate from the 2 mentioned above from 9 years ago that is still active after bk...i've never used it either; but it's open and helping me with my score still today...i'll just leave it open forever so my 'history length' part of the score will be better than if it were closed

i hate debt as well, but I also love savings and the higher my score, the less I spend on cars, homes, insurance, etc which means more money in my pocket each month to save

[debtnomore]

i don't know if you personally can't handle ccs so you hate them so, but not having them and using them wisely does cost you thousands upon thousands of dollars. Responses in bold blue below.

El wrongo. It MAY but it does not automatically.

My homeowners insurance: Never went up, but already insane due to living in Louisiana
The point is that if you have a high credit score, you can qualify for insurance companies' best rates. So you are losing money every month for the rest of the life by paying higher
My auto insurance: Went down.
Same as above. You get better rates when you have great credit = more money down the drain the rest of your life because you didn't get ccs
My job: They don't care.
Many jobs do look at credit score, so unless you are going to be in the same job forever, it may matter
Business loans: HUH? Seriously? Were you going to get one anyway on the verge of BK?
we are talking about REBUILDING credit; who said on the verge of bk? if you rebuild your credit (this includes ccs) then you will be in a better position to get a sb loan in the future
Utility deposits: Most people should already have utilities and if you have a good history with them they aren't likely to care about a BK. Is getting a credit card today going to change your utility deposit today?
people do move; new utility companies do come into the area at potentially better rates than your existing provider. And who caresa about the deposit today? there is that short-sightedness again...we are talking about the long-run here...because this is a credit REBUILDING forum, which doesn't happen overnight

I mean all these misconceptions about needing credit are amazing. Does anyone actually look at their situation or does everyone just read this stuff and freak out?

you are the one with misconceptions, whether from ignorance or denial or because you know you can't handle ccs so aren't gonna get them so you tell yourself that getting them doesn't help

the facts are well-documented: having multiple ccs without abusing them will increase your FICO score. And the FICO score is well-documented to be used in insurance rate decisions, personal and business loan decisions, job decisions, utility decisions, etc

So if we know for a fact that a higher FICO score saves us thousands upon thousands of dollars over the next few decades, then why shouldn't we strive to get the highest FICO score we can? why are u against us getting ccs and paying them off each month so that we can build our FICO score and save money throughout our lives?

[LSUTiger32]

that's a short-sighted view

credit also affects insurance rates...so someone that gets credit cards post-bk and is prudent with their usage will pay less for insurance than someone who doesn't get those cards to up their fico score

it also affects job opportunities, business loans, utility deposits, etc etc

car and home aren't the only thing one needs credit for; there are some things savings don't matter for

El wrongo. It MAY but it does not automatically.

My homeowners insurance: Never went up, but already insane due to living in Louisiana
My auto insurance: Went down.
My job: They don't care.
Business loans: HUH? Seriously? Were you going to get one anyway on the verge of BK?
Utility deposits: Most people should already have utilities and if you have a good history with them they aren't likely to care about a BK. Is getting a credit card today going to change your utility deposit today?

I mean all these misconceptions about needing credit are amazing. Does anyone actually look at their situation or does everyone just read this stuff and freak out?

[LSUTiger32]

I thank you for your apology on your other post, and I do realize that you probably don't mean to be snide or condecending... but how can you say the above statement wasn't snide?

I am totally with the other people's opinions about this being a credit rebuilding forum... so, the posts people ask here about rebuilding their credit shouldn't be replied to with: OMG why are you trying to get credit again????

It's not snide, I am asking a legit question. If you could afford everything and credit was not the problem then why in the world were there charges on credit cards? Was it seriously for fun? Was it because you (and by you I don't mean you, I mean whoever is answering this) were committing fraud by simply charging things you could pay for knowing you were filing for other reasons? I mean there has to be a reason, no?

The whole problem here is REBUILDING CREDIT does NOT equal GO OUT AND GET A BUNCH OF CREDIT CARDS. If this were a forum entitled CREDIT CARDS I could understand that, but I would still likely be on there warning people. I literally loathe those people. There are other way to rebuild credit, so no I don't accept that on this forum that I am not entitled to talk to people about other ways to rebuild their credit. For that matter, the whole notion that your credit HAS to be rebuilt. I know no one wants to hear it but there are ways to buy things without credit and yes cash is the main way. There are also programs out there for say buying a house that does have as a requirement that you have a rip off trash credit card. If I am doing underwriting on a loan and I see you with 5 credit cards at crappy rates that you are paying obsurd fees on, I see someone who didn't learn their lesson and once again is desperate for credit. I see someone who is going down the same road they were just rescued off of.

I just figured that more people on a BK forum would hate debt after what they just went through. Boy was I wrong.

[debtnomore]

I'm a dem, but agree what you are trying to convey. Dave Ramsey declared BK some years ago. He did not establish his credit with CC. In his wallet, he just has some cash, gun permit and two Visa/Mastercard debit cards.

He calls the FICA score, the debtor score.

To purchase a vehicle, you should save at least 50% for a down payment and shop around for a loan for the remaining balance.

Also, if you save 20% plus down for a home, you may likely get a loan.

that's a short-sighted view

credit also affects insurance rates...so someone that gets credit cards post-bk and is prudent with their usage will pay less for insurance than someone who doesn't get those cards to up their fico score

it also affects job opportunities, business loans, utility deposits, etc etc

car and home aren't the only thing one needs credit for; there are some things savings don't matter for

[Amy26]

OK, you win. You just felt like charging things even though you could afford them, for the fun of it......I guess?

I thank you for your apology on your other post, and I do realize that you probably don't mean to be snide or condecending... but how can you say the above statement wasn't snide?

I am totally with the other people's opinions about this being a credit rebuilding forum... so, the posts people ask here about rebuilding their credit shouldn't be replied to with: OMG why are you trying to get credit again????

If people have gone through the process, read these forums, and did their homework...they should already know the risks and possible pit falls of credit. Now that they are here and asking about rebuilding issues ... having people repeatidly knock them for asking or being badgered about living "cash only" is probably not the most prudent responses.

I also agree with what someone else said about just because you filed for bankruptcy doesn't mean you are incapable of knowing what's right and how to manage finances. Everyone's situation is different.

I guess just personally, if someone asks a question... I would try to simply answer the question that was asked and not put any judgement or outside advice into the answer other than possibly listing my personal experience if it was relevant.

[ForumReader]

along too

[emag71]

Why not just use a debit card?

I plan on financing a home and a car someday so i'm working on raising my credit score. A debit card does not help me do that; a reporting credit card does. If anyone knows another way of cleaning up my credit, by all means, I'm all ears.

[jacko]

Why not just use a debit card?

OK got my Cap One CC in the mail this weekend. $500 credit limit, 0% interest til 12/10, $39 annual fee, 16.9% interest.

plan on using only for gas purchases and paying off every month. Pure awesomeness!

[jacko]

I'm a dem, but agree what you are trying to convey. Dave Ramsey declared BK some years ago. He did not establish his credit with CC. In his wallet, he just has some cash, gun permit and two Visa/Mastercard debit cards.

He calls the FICA score, the debtor score.

To purchase a vehicle, you should save at least 50% for a down payment and shop around for a loan for the remaining balance.

Also, if you save 20% plus down for a home, you may likely get a loan.

Do you all get this from a talking points paper or something? There must be a lot of democrats on this board with all the anti-free speech talk. Nothing I said is "snide."

I say again.....YOU DO NOT NEED A CREDIT SCORE TO BUY A HOUSE. I mean read the FHA guidelines for crying out loud.

It's funny how you are entitled to your opinion on credit but when I give mine I am snide. I get a there is no way you can possibly survive in life without credit from you but I can't express the opinion that you don't need it.

I know it's hard to imagine but yeah try buying a car you can afford instead of financing something at 12% that loses 20% of it's value a year.

I promise the snide, rude, moronic jerk will refrain from posting my opinion on this thread anymore and I sincerely apologize for offending anyone. Congrats to all on the credit cards.

[LSUTiger32]

Credit Cards are not evil. Automobiles kill people every hour--are they evil?

[emag71]

OK got my Cap One CC in the mail this weekend. $500 credit limit, 0% interest til 12/10, $39 annual fee, 16.9% interest.

plan on using only for gas purchases and paying off every month. Pure awesomeness!

[Logan]

Credit Cards are not evil. Automobiles kill people every hour--are they evil?

Since my discharge I have had 4 credit cards. I paid something like $39 for my 1st card which I cancelled before the year was up and I have NEVER paid a dime to any credit card company since.

I'm headed to London tonight and will be putting my Debit Card away and using my Credit Card--WHY--because my Capital One has NO International charges and I prefer to use a Credit Card over a Debit Card when traveling Internationally.l

I may use my Debit Card to withdraw money from an ATM but I inevitably end up with International currency when I come home and that is no good.

Just like the Automobile--Credit Cards are not evil, it's the people behind the wheel that are the problem!!!

Logan