How Many CC's Would You Recommend?

[discombob1]

It just seems like in the effort of repairing credit people are soooo eager to jump right back on the cc merry go round. I see the importance of it, but is having so many credit cards that very beneficial over having one or two? I am honestly curious.

I am curious as well, since so many people feel more is better. It seems to be a popular strategy to rebuild credit.

[Logan]

I am curious as well, since so many people feel more is better. It seems to be a popular strategy to rebuild credit.

The rule of thumb for getting a mortgage is having 3 credit lines. I have 3 credit cards, a Dell card, a jewelry store card, and I had a car loan. I almost bought a house a while back and had no problem with getting approved for a mortgage.
Remember, you don't have to use the Credit Cards. I only use 1 and the rest I make an occasional charge to keep it open. The good news is I don't do anything to rebuild my credit anymore except pay my bills and pay them on time. Also, since the majority of my credit inquiries were within the 1st year or so after my BK the inquiries on my credit report has dropped from 9 to 4. Unfortunately your credit can get pulled for other things. I signed up for a post paid 3g plan for my Ipad 2 and they ran my credit.

Good luck

Logan

PS..there are many ways to build your credit but the most important is to pay your bills on time!

[discombob1]

Thanks for the reply Logan! I've heard 3 tradelines and 3 credit cards, so it's good to hear someone else's opinion! I don't see myself buying a house for quite awhile but I do want to improve my credit just in case. Overall my goal is to pay cash for all major purchases including my next car.

[Logan]

Thanks for the reply Logan! I've heard 3 tradelines and 3 credit cards, so it's good to hear someone else's opinion! I don't see myself buying a house for quite awhile but I do want to improve my credit just in case. Overall my goal is to pay cash for all major purchases including my next car.

I said 3 credit lines but meant to say 3 trade lines....

Logan

[Goteki45]

As much as the thought of getting another credit card once my bankruptcy is hopefully discharged makes me ill. I know it will be a necessary evil I will have to do if I want to rebuild my credit to the point I could think about buying a house. One or two credit cards will do. Use the CC as the tools for rebuilding ONLY!! Use a prepaid debit card for your actual spending.

[Logan]

As much as the thought of getting another credit card once my bankruptcy is hopefully discharged makes me ill. I know it will be a necessary evil I will have to do if I want to rebuild my credit to the point I could think about buying a house. One or two credit cards will do. Use the CC as the tools for rebuilding ONLY!! Use a prepaid debit card for your actual spending.

Many different ways to skin a cat. I use a credit card that earns cash rewards. Currently I'm using my wife's USAA that earns us 1.25% but I also have a Capital One in my name that earns a similar amount. Last year we got $400 bucks back.
What I do is use Mint.com on my Iphone which shows what I have in my checking account and my balance on the credit report. Mint automatically subtracts the debt from my balance to tell me what I have. I don't care what my credit card balance is as long as I don't fall below a certain threshold and of course I pay off the credit card every month.
I also have a checking account earning 3.25% so the float on the credit card is earning interest.
Once all this is set up it's pretty seamless.

Logan

[tobee43]

we have two and personally, i think it's two too many!

we used them a few times, but my OCD gets rolling and as soon as i charged on them, i ran home and paid the amount off on line!!

we decided to start a savings account and get money in the bank and let time run it's course. time does heal all wounds...including one's credit standing. we never abused our credit cards, that's not what caused us to file bk. actually, after filing our scores were 690 and 685, so that really wasn't important to us as it is for so many others to re-establish.

i know it's important for many people to get back in the credit world, but it will happen, even if you start with a secured card. but i would say no more than 2 and use only a small percentage monthly to rebuild, if you must.

best of luck to you!

[Amy26]

I will agree with the 3 magic number. But they need to be major credit cards. If you have ever noticed the remarks about "what factors hurt/help your credit score" you will usually see (assuming you have 3 major credit cards) a "positive factor" that will say "hey you get a score boost cause you have 3 major credit cards".

Store cards are generally best to stay away from but they can be beneficial for utilization purposes. I personally think credit is stupid and counter intutitive but there is nothing "wrong" with it and its perfectly fine if you don't abuse it.

Credit is just like sex... if you have wild crazy carefree sex with abandon you will mostlikely end up with a nasty disease and in a bad place but if you're responsible and use protection, good judgement, less partners etc... then you're fine. For some people, sex is too much of a temptation and they know if they partake it they will not be able to control themselves so abstinance is the prefered way to go.

So, its just important to know yourself and know what you want to do and how you want to handle your credit.

Also, what tobee said, "time does heal all wounds...including one's credit standing" ... I definately disagree with this statement in some part. Time does not heal all credit wounds and if you do nothing to work on your credit after bankruptcy that is exactly what will happen with your credit... nothing. I was just on another forum reading the bankruptcy section and a guy was asking what credit card he should at 5 years after bankrtupcy and his credit score is still 564. He subscribed to the above theory and when he finally checked his credit was shocked to see that it is still 564. I agree with this statement AFTER you get everything reporting correctly and establish new lines and have everything in order... then time will be your ally.

[octoblonde]

Discombob, If you don't mind me asking, which store cards survived BK?

Thank You.

[discombob1]

My Victoria's Secret card survived, I've used it since filing and discharge. According to my CR, also cards from J.Jill and Chadwick's of Boston are still open. I haven't used either of them in a few years. I also don't plan to use them. Right now they are helping my available credit. The Chadwick's card is issued by the same bank as VS. The J.Jill card is Citibank issued, so I expect that one to close sooner or later. I didn't BK Citi, so it will just take them longer to learn about it I think. WFFNB issues the other two and I suspect those will stay open.

[feelingnutsy]

What major credit cards that will take on post-bk applicants are out there?

I've seen a lot of no-no's about Orchard and First????

What about Hooters and Firestone?---and if they're good---any links?

[tobee43]

What major credit cards that will take on post-bk applicants are out there?

I've seen a lot of no-no's about Orchard and First????

What about Hooters and Firestone?---and if they're good---any links?

we were first approached by captitolone...given 1500 line for one of us at 12.99 % no annual fee...the other line was 1300...same interest...orchard bank came 2nd and about the same lines limits but mine cost $39.. we have no problem at all with orchard? i have heard a lot about "hooters" but never knew they did anything other than make chicken wings until i came to this site.

we don't use them anymore....AT ALL...and if we do, i pay them the same day online as i stated before.. really, and honestly the best way to re-establish your credit is to put time between your filing and when you REALLY need credit...(i.e. a new or used auto).

honestly, for us, on a personal level, we are luckier than most...we are on the downward movements of our lifetimes...so we don't need credit like many of the younger people do for whatever reasons. we just don't need much anymore. i can make 4 meals out of one $5 chicken...LOL!!! whereas, if we still had kids living with us, they would need little things like SHOES, MILK....and even medical care...those darn little things! so, i think it's much more difficult, as emergencies seem to arise for those with little ones more often and one is more likely to run to a card for help.

it's easy to say...SAVE money...but you NEED money to be able to save and have a budget...one that has an emergency fund. but until then most still have to run to the cc's if pressed. it's ashame.

[Amy26]

Hooters is a good one. I got one a few months after discharge. Initially got a 1,100 line and have received a few auto bumps over the last year. Mine has no annual fee but I know some that do have it. I like my hooters card but I don't use it as much as I used to.

And I must say personally that I do not feel ashamed when I use my credit cards and pay them off timely and do not carry balances a long time... I stick to what I said in post #23.

[discombob1]

Hey Amy, I'm curious since you are further along in the process than I am. Do you really feel that the major CC tradelines have improved your score? And if so by how much?

[feelingnutsy]

Hey---Amy---is there a link to get this Hooters card?