Using new cards just before filing.

[aljohnson007]

[BBW]

your probably right I'm just trying to get the jump on it. I waited so long to decide to do this now that I am commited I am scrambling to get everything and then some done asap.

[justplaintired]

I don't think charging and paying those cc off will matter much, they will most likely close you anyway. We had some large credit limit cc that had $0 balances, all were closed even before we filed due to lates on other cc. So I wouldn't plan on cc riding thru, it most likely won't happen.

Worry about reestablishing credit once the BK is over.

[BBW]

I certainly have learned it and never again will I accrue debt just because I have a 0% balance transfer rate or a 6% purchase rate. Over night I know those can go thru the roof.

Thanks for your input.

[justbroke]

It's hard when for 8 years every dollar I've spent has been on a card. Had I used cash I would have found out sooner what I could and couldn't afford.

I think that's the true lesson, and I think you have learned it.

[BBW]

It's hard when for 8 years every dollar I've spent has been on a card. Had I used cash I would have found out sooner what I could and couldn't afford.

[BBW]

In most cases, sophisticated creditors know of your Bankruptcy the night you file! The EBN sends the updates overnight and all the sophisticated creditors would have shutdown your accounts before the sun comes up the next day. I know this personally as this happened to me on a line of credit from my Bank where I had no other credit products, and it's not any of the big banks!

I'm just concerned with your fixation on credit. I need credit "daily" as I travel (fly, take trains, cabs, hotels every week), and I don't have ONE CREDIT CARD. I use one of 3 bank issued debit cards. I'm only suggesting that you learn to live with cash. I don't think of you any differently for wanting a credit card -- God knows that I want one -- but I'm learning.

Thanks for the info. While I do consider myself an expert on credit, from my personal obsession and my job. But I know very little about bk credit except how hard it will be to get approved for a good rate. I was hoping my bank which is not a big bank wouldn't find out. But I guess if it happend to you it can happen to me.

I don't need to use credit daily. But the idea of not having it makes me twitch. I am currently using only debit cards and cash which is very limited since I continue to pay my credit cards as to not get any lates that will lower my score (lol). In fact I have my sister sending my one of her cards just in case I have an emergency.

[mike258]

Don't forget about garbage collectors like Lexis-Nexis. Many creditors use their services to find out about bankruptcy filings.

[BBW]

However, don't let it (credit) consume you. Many people think of themselves as their FICO score. People with high FICOs use it as a badge of honor (I'm an 825, what's yours?).

You do make a point. I think in the past I have let it consume me. Although I don't think anyless of myself for having a 680 I was happy with myself when it was higher. I have always signed up for credit monitoring and if my score dropped a little I would get annoyed. I had a spreadsheet to keep track of limits and when I was last approved for an increase so I could ask for another in 6 months, which got me to a 760 score (former badge of honor) even when I had tens of thousands in debit .Which is not how I got into this mess but it is how I got so deep. If I didn't originally have $200k available and had 3 cards that totaled $10k limit I would have been fine. But then again why would banks give me so much credit? I had $75k available from amex alone. That's more than I make in a year.

I've seen hundreds of peoples credit reports and while it is possible I have only seen an 820 once.

I think going forward once I get back to a 700 I'll be happy (2yr goal).

Thanks for all the replies.

[justbroke]

But my local banks credit card, a visa issued by federated department stores bank, etc might possibly make it if they don't do an account review.

Actually, this is not how the majority of what I'll call sophisticated creditors find out.

There is an entity known as the Electronic Bankruptcy Noticing (EBN) Center. They are responsible for sending out all the wonderful mailings from the U.S. Bankruptcy Court (both paper and electronic). Court orders, notices of bankruptcy, and other papers flow through this system daily.

One of the major subscribers to the EBN are the CRAs as well as the sophisticated creditors. Your creditor usually finds out through one of 3 ways. First, they find out from the mailing from the EBN (the Notification of Bankruptcy). Second, they find out from the CRA if they "subscribe" to real-time events. Third, they find out directly from the EBN because they subscribe directly to the EBN.

In most cases, sophisticated creditors know of your Bankruptcy the night you file! The EBN sends the updates overnight and all the sophisticated creditors would have shutdown your accounts before the sun comes up the next day. I know this personally as this happened to me on a line of credit from my Bank where I had no other credit products, and it's not any of the big banks!

I'm just concerned with your fixation on credit. I need credit "daily" as I travel (fly, take trains, cabs, hotels every week), and I don't have ONE CREDIT CARD. I use one of 3 bank issued debit cards. I'm only suggesting that you learn to live with cash. I don't think of you any differently for wanting a credit card -- God knows that I want one -- but I'm learning.

[BBW]

I agree with JustBroke. Forget about credit cards! A scary number of people end up filing again. If it's on medical bills, that's one thing. You cannot control everything. But credit cards?? Nope, never.

As I said in my last two replies. I have to interest in using credit cards on a day to day basis anymore. But society as made them a necessary evil. Even if I wanted to I am going to be discharging every big bank except for wells fargo and hsbc so I won't have much to use anyway.


Oh and as far as the replies about 0 balance cards not making it that is also due to the issuer being the same. For example citi issues my sears,exxon, and homedepot cards. So I know even with a 0 balance those will be gone. But my local banks credit card, a visa issued by federated department stores bank, etc might possibly make it if they don't do an account review.

[justbroke]

Well it's certainly not credit that got me into this mess. Credit encompasses all loans. The continued use of credit cards...

So, you're saying it's credit. Got it.

Suffice it to say that once you file Bankruptcy, you'll get a clean slate. You will need to start rebuilding that credit. However, don't let it (credit) consume you. Many people think of themselves as their FICO score. People with high FICOs use it as a badge of honor (I'm an 825, what's yours?).

[BBW]

As long as the account has a zero balance on the day you file, you do not have to list it on your petition.

You are filing bankruptcy. Why do you want to keep any credit cards? My advice...get through bk first, rebuild after discharge. Once you are discharged, you can easily open up a secured mastercard at a credit union to help you rebuild.

Do not expect ANY account to survive bk....

As I said in my post above I don't plan on using credit cards in the future except for a small annual purchase to keep the account open. I do plan on using them to buy online for security reasons and I am to lazy to use prepaid cards. Or for renting a car or hotel room since if you use a debit card they put hundreds or thousands on hold for up to 30 days.

I don't except any accounts to survive. If I did I already have 3-4 without balances, but the way I see it is the more I have the greater my odds of keeping at least one.

I do plan on getting a secured card from a credit union as soon as I have a few hundred bucks after filing. But one card alone will not help. The more open trade lines (accounts) you have and the higher the available limits the higher your score. There are a lot of other factors but those two are important.

And a small difference between a 599 and a 600 score is the difference between being approved or denied for a mortgage. Or can cost thousands more in interest on an auto loan.

[BBW]

If it's credit that got you into this mess... why would you perpetuate it?

Well it's certainly not credit that got me into this mess. Credit encompasses all loans. The continued use of credit cards after my significant other quit working full time to raise our daughter, got me into this mess.Compounded with banks doubling rates because of the economy. I have no interest in using a credit card. But I know I can't rebuild my credit without them. I need to buy a car post discharge, want to buy a house in a few years, etc etc. And I've been obsessed with raising my credit score since I was 18 and discovered I couldn't just go get a loan because I had a good job.

[leena]

I agree with JustBroke. Forget about credit cards! A scary number of people end up filing again. If it's on medical bills, that's one thing. You cannot control everything. But credit cards?? Nope, never.