Two years since BK, no credit card offers?

[Bobbi123]

down&out Yes I did go through and correct my credit report.
Thanks!

[Roadrunner]

Hi Bobbi! One thing to keep in mind is that if you wait until you NEED credit (such as for a car loan, home loan, etc.) to try to establish credit you'll have a hard time of it. It is easier to get credit when you DON'T need it, oddly enough!

Getting a secured card now can help. One issue you might run into for applying for unsecured cards is that if you have had no open accounts for a while, you might not have a credit score at all. (I have a friend in that situation, just because he has always avoided credit and though he has nothing bad on his report he is having a hard time getting his foot in the door.) If you bank with a credit union then getting a secured card thru them, backed by your savings, could be a good idea. They might even be willing to give you an unsecured card if you've been with them a while.

There should be a toll free # you can call to opt in, I'm not sure of what it is but perhaps you can google 'opt in' and get some results?

[Bobbi123]

Thanks Roadrunner. I am just getting ready to join the credit union where I work. I know it will take awhile but at least I will get started. I am also going to open a savings account. While I don't make enough to save a lot a little something at least, should look positive. I found the opt in site but have to check my credit reports to see if I did opt out. (my memory is very short these days

Thanks.

[tinroofrusted]

Thanks Roadrunner. I am just getting ready to join the credit union where I work. I know it will take awhile but at least I will get started. I am also going to open a savings account. While I don't make enough to save a lot a little something at least, should look positive. I found the opt in site but have to check my credit reports to see if I did opt out. (my memory is very short these days

Thanks.

Most credit unions won't give you a credit card, until you are at LEAST 2-3 years post BK....

[Roadrunner]

I disagree Tinroofrusted. If you build a history with them (by checking, etc. there) they may be more willing to take a chance on you. Might be a small limit to start with, but it should be able to grow with you. CU's also tend to offer share-secured cards.

[tinroofrusted]

I disagree Tinroofrusted. If you build a history with them (by checking, etc. there) they may be more willing to take a chance on you. Might be a small limit to start with, but it should be able to grow with you. CU's also tend to offer share-secured cards.

That's really interesting to know.

I have been a member of my credit union now for 2 years, didn't file anything on them in the BK, have a substantial amount in my savings, and they won't touch me. They say that they don't do sub-prime financing, and that I am still a high risk creditee.....

I'll keep that in mind though. Maybe I need to look at joining another CU.....

[Bobbi123]

OK I did it. I played the game as suggested, albeit begrudingly My fear of ending up like Roadrunner suggested and not be able to get credit when I need it was the reason.
I applied at Orchard and was approved . The card is not secured. The fee is 69 per year. Rate 20%
I know what I need to do to keep this card in good standing. This is my first card since BK 2 years ago.
Where do I go from here to establish additional credit and how long do I wait?
I appreciate all of your responses

Bobbi123

[NASCAR20FAN]

I get 2 or 3 a week they are all trash though. Annual fees $79 to $149 interest rates well over 20%, and account set-up fees. By the time they would send me the card a $300 limit would be like $75, Not worth it at all...

[SinkingFast]

OK I did it. I played the game as suggested, albeit begrudingly My fear of ending up like Roadrunner suggested and not be able to get credit when I need it was the reason.
I applied at Orchard and was approved . The card is not secured. The fee is 69 per year. Rate 20%
I know what I need to do to keep this card in good standing. This is my first card since BK 2 years ago.
Where do I go from here to establish additional credit and how long do I wait?
I appreciate all of your responses

Bobbi123

Use the one you've got for a few months. Buy your gas with it if that's the way you choose to use it. Get it reporting as a positive tradeline. You can pay off your gas every month. I would. You don't wanna get back into trouble charging necessities. And gas is in your monthly budget. And now you're getting a "Pays as Agreed" reporting on you Credit Report.

But your score will go up faster if you leave some small balance over til the next month to pay off. So say, you need a pair of shoes, then buy them on your new CC. Still pay off your gas, but only pay half the bill for the shoes. Leave the other half for next month.

The CC industry refers to people who pay in full each month as "Dead Beats" or "Dead Heads". The CC's can't make any interest money off of people who pay in full each month. Well, they can't make as much money, anyway. They get 2%-5% from the merchants just because you flashed the card to make the purchase. So as a reward for carrying a balance, they actually report you higher. Odd, but it does happen.

There's any number of ways for you to do this. Maybe you need new linens for your bath. Buy those. Pay on them over 2 months. Then go buy the new food processor you've been needing. Pay on it over 2 months.

Figure out what's gonna work for you how to use the card. But take 2-3 months to pay for an item in full.

In about 6 months, you should be able to apply for another CC if you aren't receiving offers in the mail by then.

[edwards2]

tin...maybe you should join another credit union because the one I belong to just gave us a loan to get some dental work done. I have been a member for 15 years and our BK was discharged in August of 2005. So, I think it does depend on which credit union. And by the way the lady who handled the loan for us said their criteria is how you paid them and your beacon score. Mine was 650 but dropped a little because of inquiries. I have managed to get all the credit my husband and I have on my own because my score is higher than his.

Sink...that is so interesting about how to pay your credit cards. I have been doing it wrong apparently. I pay it off at the end of the month so maybe I need to stretch it out for a few months. Thanks for the info. I couldnt understand why my score didnt go up and now I know.

[Roadrunner]

Bobbi-

Orchard reports whatever you owe at the end of the month. They'll probably give you a limit in the $300-500 area. Always make sure that the balance is low on the last day of the month, such as under 25-30% of your limit. That way, it doesn't look you are 'maxing' the card out.

Maintain that one for a few months, and hopefully after that you can get a no annual fee card. You probably don't need to have too many accounts, but getting perhaps 2-3 with no fees is ultimately a good idea I think. (And sometimes, mortgage apps require you have a minimum of 2-3 accounts reporting.) When it comes time for the annual fee again on the Orchard, you can call and ask them to waive or reduce it. If they refuse, and you have other cards by then-you can ditch it.

[Roadrunner]

There lots of theories about what is best for when, how much to pay etc.

The only things I am sure of, from looking at my reports-each account reports 1X per month. Whatever IS at that time, gets reported. If I have a $257 balance reported, there is nothing in the report to indicate if that was charged and carried over from last month, or if it is new. (The report does indicate last payment, but it does not indicate total charged since last reporting.)

So-do what feels best for you. Carry a small balance if you want. Or pay in full and pay $0 interest. Carrying balances may help you to get limit increases (perhaps they'll raise your limit to encourage you to spend more) but then again, maybe not.

[Bobbi123]

Thanks for all of your responses. I printed them out.
I am relieved that I got a card but obviously want to get away from the yearly fee ASAP. Yes I know how much the cc companies hate people who pay everything off each month. I have friends who charge huge amounts each month on their Discover card and then pay it off each month. Luckily they have the funds to do that!
The idea of putting gas on my card is exactly what I had planned to do so that I am charging something that is in my budget and can be paid.

I am surprised that the mortgage company would want you to have multiple cards. Seems like one card , held for a decent length of time and in good standing would be enough but then again these companies don't think like I do
I don't plan on applying for a mortgage but who knows. I will probably need a car in a few years, mine is a 1993 so that is one reason I really wanted to get busy on rebuilding my credit.

Thanks again!

[Bronte]

Bobbi123,
Good news about your new card!! After around six months of the Orchard Card reporting to the credit bureaus you may want to apply for a department store card. Many here have had luck with the Target Red Store card. The limit is usually low ($200.00) but is is a step in rebuilding credit. You can check this website and creditboards.com to see what companies are bankruptcy friendly.

[SinkingFast]

Actually, it's a balance of types of credit rather than how many CC's you have.

A mortgage or letter of reference from your Landlord if you rent and they don't report to the CRA's, an auto loan, and at least one unsecured line of credit. A personal loan, a CC, whatever.

Balanced gives prospective mortgage type and prime level lenders a better perspective of you than if you have a bunch of CC's.

Maybe as soon as you can, get a small furniture or appliance type loan. Something you'd buy normally, but take a LOC for a portion of the purchase instead of paying in full, up front with cash. Or maybe do a 6 months same as cash thing. That's a secured tradeline as opposed to an unsecured like a CC.

When you get to the point you need one, and can get financing, buy a car. Something with payments that won't blow your budget. Another secured tradeline that will report for you.

But you gotta start with baby steps. Brick by Brick, my friend. Rome was not built in a day.

It may take 2-3 subprime CC's to get to the point where you can do 6 months same as cash on a new washer and dryer. You may need all that to get to the point where you can buy a car with a decent interest rate.

As you get offered better types of credit, you can close some of the older, sub prime accts. That way, you keep your total open LOC in check. The amount of debt you currently have charged isn't the only thing considered. Amount of Credit available is also considered. Because that's the total available that you can potentially go into debt at any one time.

Eventually, you'll graduate from sub prime lenders back to the prime lenders.