What is next?

[MURPHY]

I recently had chapter 7 discharged in Dec 05 and I read mixed replies on this forum-What do I do next-I feel that I do not need credit-I am fortunate enough to have been able to learn how to live without credit in the last 24 months because of maxed out credit cards-I am not wanting to ever have to use credit again to live-sleepless nights, well everyone knows. I have been told to wait and not to apply for anything, I have been told to apply for one of the CC's that give you $300.00 of credit to only charge $150.00 for some sort of application or activation fees(does not seem to make financial sense at all-sort of like buying items on credit and not knowing where your money goes) Should I pull a credit report on myself and see what it says-I am new here and this is my first post-so please do not execute me I am trying to get a game plan together-thanks

[Bronte]

Welcome Murphy,
I know how you feel about living by cash and not using credit cards but if you do this you credit score will not approve and when you go to get a car, home, personal or school loan you may be turned down or charged very high interest.

If you haven't done it already the first step to repairing your credit is to see what is being reported on your credit reports. Your can receive a copy free from each credit bureau each year from www.annualcreditreport.com. When you look at your reports note anything wrong. All accounts discharged in bankruptcy should say that and the balance should show 0. Make sure the accounts listed in bankruptcy do not show you as late after you filed bankruptcy. If so dispute this. When you pull each report from the credit union you will have an option of disputing this information on line. You can either dispute on line or send a letter to the bureau.

It would be helpful to get a credit card to improve your credit score. I believe you were referring to the First Premier credit card in your post (measly limit with high fees). You do not have to go that route. They are many predatory lenders trying to make a buck off us. I would suggest you look at the recommended credit card thread and also check some other credit forums to get an idea of credit card companies that can will not rip you off. You may want to try orchard. They have a high rate of approval and have many cards available depending on your situation.

You may want to look into a secured card. You will send the bank issuing the card a check or money order in an amount that will be your credit limit. For example I have a secured card with National City Bank I sent them a check for $500.00 and they send me a credit card for $500.00. Some secured cards graduate to a unsecured card and they issuing bank will send back the deposit at this time. Not all companies will offer a secured card to someone with a bankruptcy on their record.

I have both a secured and unsecured card. I do not want to go back into debt and want to increase my credit score so what I do is use the cards to pay my monthy expenses . For example I use one credit card to charge my MSN internet to and use my other card to charge my gas on. The bill are payed off in full each month with the money set aside for these expenses.

[FilingOnMyOwn]

Yes I agree. You should pull all 3 of your credit reports and get all errors fixed. Then open a household, orchard, or capital one card. You don't have to use it, just pay the annual fee when the bill comes and destroy the card. The fee on these cards are 59$ or less, DO NOT do the aspire visa thats the 150+ $ one its a ripoff. Your credit score will improve, which is important because your insurance rates are based on it, and if you ever do decide to use credit again to buy a house or car, then it will be in good shape for you to do so.

[down&out]