First credit card post BK

[trock]

Hi everyone, this board has helped me TREMENDOUSLY through my BK. Big thank you to all! My Chapter 7 was discharged Dec 2013. I waited three months post discharge to apply for a new unsecured credit card. I got approved for the Cap One QuickSilver: $3,000 credit line, $39 annual fee, 24% APR. I had three Cap One accounts included in my BK, so I was a little hesitant to reapply with them, although I had read they are BK friendly and figured I'd give it a shot. They definitely are BK friendly. I've already used the card, keeping it under 30%, and will be paying off the balance in full at end of month ALWAYS. My credit score was in the high 700s before my BK, two accounts late 30 days, no judgments, one good standing car loan. My present score is 671, and I'm hoping to be back in the 700s by end of year. Thankful and grateful for my new start!

[kjg]

That's awesome! Super excited for you!!! CONGRATS!

Question - I was just having this conversation the other day, with a friend who knows about my BK (I just had my 341 meeting last week, yaay!)... I'm filing Ch7, in hopes of discharging everything but some student loans and my car (haven't heard yet if the finance co. is okay with reaffirming though). Most of my student loans are consolidated ($0/mo repayment plan), and my car payment is reasonable, so my expenses aren't much moving forward, and I am anxious to start rebuilding!

Ok, so my question is - whether it would be better to apply for an unsecured card, like you did, right out of bk, or if I should just go with the secured card (even if the credit limit is less, based on my own limitations on funding it), if the secured card offers a lower APR/fees than I can get on an unsecured. My thought, of course, it to rebuild my credit the fastest, least expensive way that I can... I didn't really think that an unsecured card would be possible anytime soon after my BK, before reading your post, or that if it was, the APR would be so ridiculouly high that I'd be better off to go with the secured card anyway... But your post makes me wonder (and hopeful)!

[trock]

Thanks kjg! I think it's a pretty generous credit limit. The APR a little high I think, but I will not be carrying a balance. I've already used the card by paying some of my monthly bills on it, keeping it under 30% of the CL, set the $$ aside and paid it off, and it felt great!

As far as secured/unsecured, I wrestled with this one myself and in the end decided to just wait a few months and try for the unsecured. I applied for one of a few that were suggested to me by creditkarma.com. Have you tried that site? I found it pretty helpful. I'm not so sure if one is better than the other for rebuilding, but whichever one you decide, secured/unsecured, I recommend making sure the card will report to all three credit bureaus. Best of luck to you!!

[ccmisery]

Capital One is screwy, the blacklisted me and others. I only had one card, problem is each case is different, if you file right away and don't let anything go over 90 days late, you can get a card quicker, have anything over 90 days or longer, you will find it harder to get approved for anything, even with a fair to average FICO score.

[sbatman]

CapOne with a $750 limit, one month after my Chap 7 was discharged. When I got it, I was told that there were to be no increases in the credit limit, that I would have to apply again for more credit. I didn't care, as all I needed was to build a little credit up. The limit is now $2750, unilaterally raised without a request for me.

Then a Navy Fed secured which was converted to unsecured withing four months. $3500 limit.

Just got a USAirways frequent flyer MasterCard preloaded with two free domestic round trip flights. Also a 5000 mile discount for each frequent flyer trip in the future, a free checked bag with every flight and a $99 companion fare We do a fair amount of traveling (we can afford it because we own our house and autos free and clear-see my other post of today), so the $89 annual fee is more than paid for just the benefits). They gave me a $2000 limit. The low limit is fine-if it was $1, I would still get all the above goodies.

So, I believe my credit is well enough reestablished. For the Naysayers who say I don't need that much credit, the cards are paid off in full every month, I've not run a balance since I filed for bankruptcy in April, 2011. But the important thing is with that credit, that I can buy an airline ticket, rent a car and stay in a hotel , anywhere in the world, in case of emergency Very important with having four kid in four states or internationally (yes they are adults, but stuff happens and sometimes only Mumsy's physical presence will do).

Life is good and I'm enjoying it-knock on wood that this state will last a long time.

[iswmle]

My first post bk was Credit One, then an Orchard. They served their purpose

[ccmisery]

CapOne with a $750 limit, one month after my Chap 7 was discharged. When I got it, I was told that there were to be no increases in the credit limit, that I would have to apply again for more credit. I didn't care, as all I needed was to build a little credit up. The limit is now $2750, unilaterally raised without a request for me.

Then a Navy Fed secured which was converted to unsecured withing four months. $3500 limit.

Just got a USAirways frequent flyer MasterCard preloaded with two free domestic round trip flights. Also a 5000 mile discount for each frequent flyer trip in the future, a free checked bag with every flight and a $99 companion fare We do a fair amount of traveling (we can afford it because we own our house and autos free and clear-see my other post of today), so the $89 annual fee is more than paid for just the benefits). They gave me a $2000 limit. The low limit is fine-if it was $1, I would still get all the above goodies.

So, I believe my credit is well enough reestablished. For the Naysayers who say I don't need that much credit, the cards are paid off in full every month, I've not run a balance since I filed for bankruptcy in April, 2011. But the important thing is with that credit, that I can buy an airline ticket, rent a car and stay in a hotel , anywhere in the world, in case of emergency Very important with having four kid in four states or internationally (yes they are adults, but stuff happens and sometimes only Mumsy's physical presence will do).

Life is good and I'm enjoying it-knock on wood that this state will last a long time.

Just be careful, most people file BK due to credit card debt that is impossible to pay off. I had a card once upon a time, paid off monthly. Had some emergency medical expenses, MRIs that my health insurance did not cover 100%, ended up with $2K of debt in a few weeks that could not possibly be paid off in month with other living expenses. APR was low on the card, Cap one but truth be told I never ever paid the card off after this incident as other expenses mounted and a job loss was the final nail in the coffin.

[nioka]

Just be careful, most people file BK due to credit card debt that is impossible to pay off. I had a card once upon a time, paid off monthly. Had some emergency medical expenses, MRIs that my health insurance did not cover 100%, ended up with $2K of debt in a few weeks that could not possibly be paid off in month with other living expenses. APR was low on the card, Cap one but truth be told I never ever paid the card off after this incident as other expenses mounted and a job loss was the final nail in the coffin.

This is pretty much how I ended up with lots of CC debt. If I got a medical bill I paid it and when cash was not available it went on a CC. With medical bills it doesn't take long to rack up big debt.
In contrast, I have a friend who has about $250k in investments and savings, he owns his home, and has several credit cards. (Uses Discover to get the bonus). When he gets a medical bill he tells them he has no money and gets away with it. i.e., he had a $16k bill from a radiologist for cancer treatments. He said he could not pay. They allowed him to pay $100 a month. He paid the bill faithfully for a litttle more than two years. Then he got a letter from that medical facility that instructed him to stop payment as they had written the bill off.
The fact is that if you need to go to a CC to pay a medical bill then you really don't have the money. I suggest trying to make a deal where you pay the medical facility over time and use your CC only if there is no other way.

[sbatman]

We have five digits in savings, increasing every month since the bk. The credit cards are paid off usually days after purchases made. We only use them for frequent flyer miles and the fact we don't like carrying cash around.

I'm not too worried about the cc debt. It was the underwater first mortgage and HELOC and my job loss that broke the credit camel's back. We now own our new house and two cars free and clear.

Credit cards are not every person's nemesis.