Credit cards after BK

[Deleted]

Ouch!

Why do you need a card? Do you have an ATM?

I think $175 is way too much money to pay for the privilege of having a card.

Do you have any other credit like a mortgage or car payment?

[zibazinski]

Wait awhile. The offers will improve with time.

[Deleted]

If you really want a card so soon to help rebuilt your credit, apply for:

www.capitalone.com/creditcards/mastercard-secured-credit-card/r/?linkid=WWW_1010_CARD_TGSEM08_CCBRWCMP_C3_35_T_CP62803RW

The security deposit for my cousin was $49 (which you get back)
Annual Fee : $ 29
And her credit limit was $200.

She just uses it for misc. purchases and pay it off at the end of the month.

[Anne_in_VA]

Those fees are way too high for a secured credit card - but that's typical! Don't take them up on the offer.

If you have access to a credit union, ask them about a credit card - they may offer a secured one with little or no fees.

Personally, I wouldn't want another cc unless you've fixed the situation that got you into needing to declare bk - just IMO.

[thinid]

About the only thing any cc would do for you is help with your average age of accounts, and that will only matter much later on when the BK drops from your credit reports. With that cc, you'd be looking at $349 in fees alone over 2 years. You'll be better off putting that money into savings so you can pay cash for any little emergencies.

[tloonya]

Don't get cards with fees.
Apply for store cc. They will give you a small credit line and you will not be in danger to get close to BK again. Good Luck!

[NancysSummerSip]

IG, I know how hard you've worked, and I know that you've looked at what happened in the past. I agree with anne-in-va; join a credit union and get a card from them. If there are fees, they will be lower than anyone else. Also, look for cards with usable rewards (like for gas and groceries), so that when you do spend, you get something back for it.

[michelyn8]

I'd toss any offers that come in the mail in the trash. If you really want to get a card to help build your score back up, shop around. There are other places with much better fees and interest.

I got a Cap One card last year with a $250 limit, a fee of about $49 (don't remember exactly) and an introductory rate of 0%. In April, it will go up to 19.8% - still high but I'll try to negotiate that down once my score improves. After 3 months, they raised my limit to $500 and they will continue to raise it as they see fit.

You can also check Orchard Bank (HSBC). They issue cards to those trying to rebuild their credit and their beginning interest was just over 14% when I looked. They also charge a fee but its not like the offer you received.

[Clever Username]

Do you have any student loans or reaffirmed secured debts?
You may already be rebuilding.

[TheOtherMe]

After my bankruptcy, I got a secured credit card for Orchard Bank. I started with about $250 and got it up to $1500. Charged a tank of gas a month on it. I had to do something to rebuild my credit. I couldn't even get a store card. As things got better, Capital One, offered me a non secured card at a very high rate of interest. I took it, but only charged one tank of gas. Paid both cards off every month.

Capital One finally offered me a regular card with a $5000 limit so I closed the Orchard Bank Card, got my money back and closed the original Capital One account.

There is life after bankruptcy. At first, I got some outrageous offers for cards and vehicles in the mail and I didn't bite after any of them. I slowly built up my credit and after the 7 years passed, I was able to buy a home.

Credit Union gave me a credit card at 0% for 12 months and 9% after that after I moved. I am never getting myself in credit card debt again. I pay it off every month.

[TheOtherMe]

I did learn the hard way you cannot rent a car with a debit card. I managed to do it on Priceline, but at a higher rate and I had to have over $1K in the bank that had a hold on it the entire time I had the car. If you think you will be renting a car, you will need a credit card.

I buy my airline tickets with debit cards. I really don't like big purchases on credit cards.

[TD2K]

Ditto, those fees are too high just to get a credit card. Ouch.

[cronewitch]

If you are getting your finances straight you shouldn't be taking airplanes or renting cars for the near future. If you travel for work it might be a problem but if they company needs you they will prepay the tickets and rental cars.

[Clever Username]

Clever: We didn't reaffirm anything. This was the advice of our BK lawyer. Unsure if this is good or bad. I am on a rehabilitation program for my school loan for 9 months via a debt collector, then it gets turned back over to the school loan folks if I comply. I ran my credit report last month. There are zeros for current credit open/available.

Good to hear.
So, you've got active accounts on your credit report that list you are making ongoing ontime payments.
That is the definition of good credit.
Now it's just a matter of building a track record of those.

[greeneyedchicka]

I would second the Orchard Bank and Capital One route. You can get much better rates with little or no fees.

Orchard Bank also hase a pre-selection process that tells you ahead of time what you qualify for without adding an inquiry to your credit report. If you like it you proceed with the credit application, if not you just decline and move on.

[Clever Username]

Because we didn't reaffirm any of our debt, unfortunately, the on-time payments for our mortgage do not show up on our credit report.

I'm of the opinion that unless you've got tons of equity, nobody should reaf a home.
Not reporting on credit is a minor cost for the ability to avoid a foreclosure deficiency, come what may.

[maui1]

anyone that talks interest rates, is a dead beat in the making.

get the best card that pays you back what you want.....period!

pay all credit cards off every month and be the controller of your finances.

[TheOtherMe]

Mar 1, 2011 19:07:27 GMT -5 @toughtimes said:

Leave that one. It bites. In the meantime, concentrate on learning how to budget. Except for renting a car during travel, you can probably do without the card entirely.

It's nice to have the credit card available to rent a car in case there is an emergency and you need to rent a car.

Kid I had renting my basement had to rent a car while his was being repaired. He had a problem because he wasn't 25. Somehow his parents got involved and he got a car.

Just be sure and pay the card off every month.

[cronewitch]

I worked for a company where almost all the people traveling for the company were under 25. We only found one rental car company that would rent to us for them, Enterprise. So the company always used them even for older workers that might have to travel.

[dianartemis]

Budget car rental accepts debit cards.

[TheOtherMe]

Mar 8, 2011 13:14:31 GMT -5 @insurancegal said:

Mar 8, 2011 13:13:18 GMT -5 dianartemis said:

Budget car rental accepts debit cards.

Yeah, but don't they freeze a certain amount of $$ on your account?

Which can cause other big time problems.