Also getting new Credit Card Offers

[cana]

Thanks to the forum's help, I have taken care of the lawyer problem.

Now, while my discharge date is still six weeks away, I am getting new credit card offers (one was in my Ch7 filing!).

I simply shred them without opening. I know the terms would be nasty, so I don't bother at this moment.

My car is kind of steady and will probably last quite a time without major maintenance. I have no family at this point, and no plans to seek a partner until I rebuild my nest egg.

I don't buy anything with credit card. I last used my credit card on Dec of 03, and don't miss it too much.

So I will probably live without a cc for quite some time. I don't know whether it is good or bad, but I am not in a hurry to rebuild my credit.

(My credit score was 520, the last time I checked. At that time I had not missed a payment.)

[bkfiler]

i would suggest that you do use credit to play the game only, and not for daily expenses, but rather emergency only expenses to be paid off shortly.

i agree with you. i dont miss my credit cards at all. i never realized that i shouldnt be using them as an extension of my income lol. its absurd. its like going to a sale where they charge you at least 20% extra.

you should probably look for and get cards that have very little annual fee and a grace period. this will help you build your credit score while not being charged to do it. APR doesnt matter since you shouldnt hold a continued balance past the 25 day grace period for each item purchased.

try orchard if you decide to or wait until you get an offer. but to avoid it altogether can and probably will hurt you, maybe more then help you, and your financial future.

good luck to us all

[bkfiler]

or at least go get a crown jewelers account. they dont do a credit check and you have to pay a downpayment to get your item anyways. also, you probably aint gonna abuse it cuz everything they have sorta sucks in price

buy a pair of earrings for $25 + s/h and it pretty much takes care of the account annual fee that you would get with a credit card. staci gave me this idea but she hasnt sent me my earrings yet

[cana]

Unfortunately I have nobody to buy earrings (I don't need it).

I will probably stick with my no-cc position some time...

[Genenco]

Frankly, I would find 1 or 2 things I could buy in "Monthly amounts" and at one single purchase.

Then have a single bank account devoted to THE CARD.

Also, NO DEBIT CARD FROM THAT ACCOUNT..This way you cannot easily access the cash. (Nope, no checks either...Make it a "Pay Online Account")

In 6 months your score will have climbed..In a year, you probably would qualify for a home loan. (Sorry, I meant 2 years for Home loan..Damn weak coffee..Gotta double the dose!)

As it is said. It's not what you have, it's how you USE it!

[newstart]

Geneco that is a good idea. It is best to wait for your discharge before you start applying for credit?

[StaciMM]

My theory-building credit is important depending on what your goals, future plans involve. If you really don't want to deal with credit at all, don't feel pressured to do so. Just keep in mind that the time to 'rebuild' ideally is 1-2 years before you NEED credit.

[Genenco]

Geneco that is a good idea. It is best to wait for your discharge before you start applying for credit?

Yes, after all, you want THAT part of your life settled completly before you do anything else...

[StaciMM]

By the way Geneco-it is possible to do a home loan less than 2 years after BK. If you have good job stability (same job or field for 2+ years), get your credit score up, and have *some accounts older than 2 years old, then you can get decent rates.

*The accounts may be former car loans that were paid/closed prior to the bankruptcy, or student loans that are in repayment.

My goal is to get to 640 mid score, hopefully by next summer, and we'll be able to get our mortgage. I have a lender in mind, and am working with a broker unofficially right now. I say unofficially because at this point, he has just been answering questions regarding what to do, what to expect, etc. If we had the score (and the discharge!) now, the rate would be 6.5% on a 2/28.

[Leftfield]

The idea that most people have, in order to build their credit, to use a credit card and pay it off within the grace period. That way you don't have to pay interest and you build your credit at the same time. Right?

Wrong! Fact is, you must carry a balance to build your credit. I know, it's hard to beleive. Charging and paying off immediately does not improve you credit score! If any, it will be in a very slow pace. When I thought about it, it made some sense. creditors wants to see a revolving accounts that has been kept in good standings. And the only way to show that is by making multiple payments.

So, what I'm thinking is to use a credit card than let the balance roll for a couple of months, of course while making the minimum payment. Then pay the remaining amount. Also try to use your credit card for something you really need and you would have otherwise paid in cash. Charge for something less than $100 to keep the interest down.

[bkfiler]

correct. you need a 'reported' balance each month over time to improve your scores.

maybe you can put the monthly auto charges on it. if you have a card with a grace period then you have 25 days or so to pay it without finance charges but you would still get the balance reported if you time it right.

remember, except for ONCE only, to never ever use over 49% of your balance. if you do thten you are hurting your credit score. the ONCE that i talk about is use it to the limit without going over so that in case its a card that reports the high balance as the limit then it will repport the highest possible amount. but be sure to return that item to walmart after it gets reported

[Leftfield]

Yup. Though I'm not aware of the exact pertantage but it looks reasonable to me. It's this ratio between the balance, the credit limit and the overall debt you owe. So if you have a CCs with high balance flirting with the credit line, than you're hurting your credit.