Starting over...

For just about anything you want to get off your chest about credit cards.
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Molly
 
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Starting over...

Postby Molly » Wed Apr 13, 2016 12:09 pm

Hi, I'm a long-time lurker and new poster. I am in the process of divorcing my ex and his bad financial habits. I live in a community property state, and in order to rid myself of the marital debt, I recently filed a Chapter 7. I now have a chance to do this the right way on my own, and I want to establish (and be able to reap the benefits of) a good credit history. I understand that CC companies come out of the woodwork after a BK filing, but I want to make sure I make smart choices and don't just grab at straws to reestablish myself. What are some good cards for me to look into that will solidly rebuild my credit and maybe give me something in return? Thanks in advance!


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CarefulBuilder14
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Re: Starting over...

Postby CarefulBuilder14 » Wed Apr 13, 2016 3:19 pm

Molly wrote:Hi, I'm a long-time lurker and new poster. I am in the process of divorcing my ex and his bad financial habits. I live in a community property state, and in order to rid myself of the marital debt, I recently filed a Chapter 7. I now have a chance to do this the right way on my own, and I want to establish (and be able to reap the benefits of) a good credit history. I understand that CC companies come out of the woodwork after a BK filing, but I want to make sure I make smart choices and don't just grab at straws to reestablish myself. What are some good cards for me to look into that will solidly rebuild my credit and maybe give me something in return? Thanks in advance!

Right after a Ch. 7, many lenders (like Discover and Bank of America) will likely decline you even for secured cards. I'd suggest joining SDFCU (which you can do through a $5 membership in the American Consumer Council). SDFCU doesn't do a credit check on applications for secured cards.
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takeshi
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Re: Starting over...

Postby takeshi » Thu Apr 14, 2016 9:12 am

Molly wrote:What are some good cards for me to look into that will solidly rebuild my credit and maybe give me something in return?

Any card can be good for rebuilding. Those same cards can also be bad for rebuilding. Rebuilding really isn't about the card but about how one manages one's credit accounts.

Just coming out of a bankruptcy I don't suggest looking for getting something in return but just looking for what you can qualify for and for cards that you can keep in the long run, if possible. The cards I had when I was rebuilding post-bk were bare bones cards with no rewards.

Tubpbs
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Re: Starting over...

Postby Tubpbs » Thu Apr 14, 2016 8:02 pm

takeshi wrote:
Molly wrote:What are some good cards for me to look into that will solidly rebuild my credit and maybe give me something in return?

Any card can be good for rebuilding. Those same cards can also be bad for rebuilding. Rebuilding really isn't about the card but about how one manages one's credit accounts.

Just coming out of a bankruptcy I don't suggest looking for getting something in return but just looking for what you can qualify for and for cards that you can keep in the long run, if possible. The cards I had when I was rebuilding post-bk were bare bones cards with no rewards.


How long ago was your bankruptcy Takeshi?
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Kevin86475391
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Re: Starting over...

Postby Kevin86475391 » Thu Apr 14, 2016 10:04 pm

I've never had a bankruptcy so take what I say with a grain of salt. I'm just going by what I've heard and read second hand and what I think I'd do in that situation.

I'd probably wait a good 6-12 months after the BK is discharged before applying for anything. When you do start applying I'd first try for a basic, unsecured card that's easy to qualify, but expect to be declined (it's just sort of 'worth a shot' IMO). I'd expect to instead get a secured card - stay away from predatory lenders like Credit One and First Premier - and expect to need to stick with that for 1-2 years. Then I'd gradually try applying for basic unsecured cards and after having those for a year or so start trying for the cards you really want.

Also be aware that some lenders may blacklist for a very long time, perhaps even forever, after a BK that burns them. I'd also suggest checking out the Rebuilding forum on MyFico.

First and foremost just stay motivated and focus on improving your financial situation and developing and maintaining good financial habits. Recovering from a bankruptcy is a long process, definitely more a marathon than sprint type thing, but you can absolutely get where you need to be! Good luck and feel free to keep us posted on your progress!

Molly
 
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Re: Starting over...

Postby Molly » Fri Apr 15, 2016 12:15 pm

Thank you for all the advice so far, I really apprciate it. I wanted to ask about a couple of options that have been mentioned to me, namely getting a card through either Cap One (which I understand works with bruised credit) or through a CU. I also have a 5 year plus banking relationship with Wells Fargo, and was wondering if they might be worth a try, because of that. I will check out My Fico...I know that they have good reviews on who will or will not approve. My goal is to be disciplined enough that I can qualify for an Amex within 3-5 years. Wish me luck!



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