How necessary is it to use credit card?

[discombob1]

Question for the gurus ..

I have a Cap 1 card that I obtained after discharge. I have been charging a small amount and paying it off. The thing is... it's kind of annoying. I pdrefer just using my debit card, especially since I earn points on it. If I just stop using the card, except maybe an occasional charge to keep it active, will that make my score recover more slowly?

Thanks for any input!

[AngelinaCat]

I really don't know, because we have not tried to get a credit card since we were discharged in August 2008. Nor have we looked at our credit scores, although we have spam mail from supposedly all three companies to all of our email eddresses every single day. GGRRRR!

We have a debit card that can be used as a credit card, which we do because if there are any errors, the credit side gives more protection than the debit side. I can see having a credit card to be used only in emergencies such as having to book a plane flight in a family emergency, and many places do not take cash or debit.

I personally do not want one, as I know I am too weak, and would give in to the temptation to charge.... Just my two cents......

[discombob1]

It's funny, I wondered if it would be a temptation for me too, but I actually find I prefer not to use it. Unless it will cause a major hit to my credit, I prefer to stick with cash and my debit card. That's why I'm curious about the effect.

[Logan]

Question for the gurus ..

I have a Cap 1 card that I obtained after discharge. I have been charging a small amount and paying it off. The thing is... it's kind of annoying. I pdrefer just using my debit card, especially since I earn points on it. If I just stop using the card, except maybe an occasional charge to keep it active, will that make my score recover more slowly?

Thanks for any input!

I'm not an expert on how that will change your credit rebuilding but why don't you just have a recurring charge on your credit card that is a fixed cost such as netflix and set up your online bill pay from your checking account to automatically pay that a few days after the statement date?

Logan

[IBroke]

The number of monthly transactions has NO influence on the credit score. The only things that count are are the status ("open" and "current") and the reported balance (less than 9% of your CL). How many transactions/month lead to said balance is not recorded on your report.

[Amy26]

You generally need to charge something on it once every 3 or 6 months just to make sure the card does not get closed. The worst that can happen is the lender could lower your limit if they see you aren't really using it. Which could be a bad thing on your credit... but depends on the bank. But as Ibroke said, doesn't matter how many times you use it as long as you use it often enough to keep it open.

[discombob1]

Thanks for the input everyone. I may take Logan's suggestion... I like the thought of making it automatic. I usually don't like auto drafts, but I find having one more bill to track every month is annoying. Overall mint.com is helping, but I like the simplicity of only using my debit card.

[debee]

Amy - nice credit scores. Your scores are higher with your bk than my spouse's were when we got married and he had paid off his student loans by then, paid off a car, and had no derogatories and no lates and no public records whatsoever. (Sorry for the hijack, discokitty/mbob.)

[IHateToBeEmo]

I really don't know, because we have not tried to get a credit card since we were discharged in August 2008. Nor have we looked at our credit scores, although we have spam mail from supposedly all three companies to all of our email eddresses every single day. GGRRRR!

We have a debit card that can be used as a credit card, which we do because if there are any errors, the credit side gives more protection than the debit side. I can see having a credit card to be used only in emergencies such as having to book a plane flight in a family emergency, and many places do not take cash or debit.

I personally do not want one, as I know I am too weak, and would give in to the temptation to charge.... Just my two cents......

I'm with AngelinaCat. I haven't applied for a credit card since we were discharged and closed last year, and I don't intend to in the future. A checking account with a debit card is sufficient for me. My credit score will not control me.

[Amy26]

Amy - nice credit scores. Your scores are higher with your bk than my spouse's were when we got married and he had paid off his student loans by then, paid off a car, and had no derogatories and no lates and no public records whatsoever. (Sorry for the hijack, discokitty/mbob.)

Thank you. Its funny cause my credit scores are actually better now than they were before. Since discharge, I have been really educating myself on how to make credit work for me and not let credit work me over. My credit was clean before BK and no lates or anything either. I am hoping to bust into the 700's in maybe 3 months... we shall see! I might try some more disputes to get some more IIB accounts removed and maybe even my public record.

I'm at the point now that if I keep my utilization below 10% the only thing I can do is let time age my accounts. I have tweaked everything and got everything reporting the way I want and I have all the credit I need. The only thing I have left to do is bump a few more inqueries off my TU and EQ reports.

@Discombob: Who do you bank with? One thing I find really convienient is having a credit card with the bank that I have all my money in. So, I have the Navy Federal Rewards Visa... its linked up in my online accounts. So, when I charge something to it I just move the money from my checking account to the card. I really like using the Visa for purchases more than my debit card because I'm earning rewards. And Credit Unions typically have some nice rewards cards. So, if its something that might be easier for you and helpful you could look into something like that. Just a suggestion.

[discombob1]

Amy, I've thought about that. I bank with Fifth Third Bank, but I figure I should be at least a year out before I apply for something there. I was only discharged in Feb. I also have an AmEx high yield savings account but I know better than to apply for credit there!

[iswmle]

I bank with BofA, it will be a cold day in hell before they give me a cc... at least that is what they said in response to my inquiry for a secured card... after the laughter died, of course. :P

[debee]

i bank with bofa, it will be a cold day in hell before they give me a cc... At least that is what they said in response to my inquiry for a secured card... After the laughter died, of course. :p

lol! <--- It's really an uppercase laugh but for some reason doesn't appear that way after I type/laugh it.

[Goteki45]

Question for the gurus ..

I have a Cap 1 card that I obtained after discharge. I have been charging a small amount and paying it off. The thing is... it's kind of annoying. I pdrefer just using my debit card, especially since I earn points on it. If I just stop using the card, except maybe an occasional charge to keep it active, will that make my score recover more slowly?

Thanks for any input!

Im still in the middle of the CH7 process. When I am discharged, I really don't want to ever see another credit card again. I use my prepaid debit mastercard, and I am doing just fine spending cash. In the end, you have to ask yourself why would you want to re establish credit. Do you need to do it for things you "need" or you just for the "wants". I do want to buy a house in a few years, and I know I have to have a credit history, so I will probably re establish credit for that sole purpose only. Other then that, I will never use credit again to "finance my lifestyle".