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chris605
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Member since 5/05 3205 total posts
Name:
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REBUILDING CREDIT
HELLO LADIES -
I AM TRYING TO HELP A FRIEND WHO RECENTLY FILED BANKRUPTCY - SHE WANTS TO START TO REBUILD HER CREDIT - WHAT CREDIT CARD/S SHOULD SHE APPLY FOR THAT DONT HAVE RIDICOLOUS FEES - I READ FIRST PREMIER HAS $175 IN FEES SO I THINK THATS A BIT CRAZY...
I KNOW SHE JUST APPLIED FOR ORCHARD BANK AND WAS APPROVED....
WHAT ELSE SHOULD SHE APPLY FOR ???
THANKS,
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Posted 6/29/10 3:10 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
1stimemom
Love my boys
Member since 2/08 8766 total posts
Name:
Mrs Dee
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Re: REBUILDING CREDIT
The store cards are a good way to start - Macy's, Target, etc...
The best thing is just to never carry a balance over
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| Posted 6/29/10 3:15 PM |
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tara73
carseat nerd
Member since 11/09 3669 total posts
Name:
Buttercup
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Re: REBUILDING CREDIT
The only other card she could really apply for right now would be Best Buy Rewardszone mastercard but she already applied for an HSBC card (they only allow one of their cards to start post BK)
She needs to get copies of her credit reports and get those cleaned up. Make sure that the items are reporting correctly as included in bankruptcy etc and dispute anything that is reporting incorrectly.
Capital one is another option but you're best to wait for one of their preapprovals to come in the mail. Cap One checks all 3 reports whereas most cards check one report.
She can rebuild with one card, she doesn't need more than that. If she has a car loan she reaffirmed or student loans those will work towards rebuilding as well. Some companies are just not bankruptcy friendly to begin with and their unfriendliness increases if they were included in the bankruptcy.
In 6 months of ontime payments and with any corrections made to her credit report she should have more options available (apples iTunes Visa, Hooters will sometimes approve 6-12 months post BK with good track record) Going on an "application spree" and applying for everything under the sun is not good for rebuilding, every hard pull on your credit lowers your score further.
Many store cards are now managed by the bigger banks (like Walmart's care is GE Money Bank, Toys R Us is managed by Chase etc) and many of those companies are not bankruptcy friendly.
Message edited 6/29/2010 3:24:12 PM.
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| Posted 6/29/10 3:21 PM |
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Jessica
I'm a mommy :)
Member since 1/06 7322 total posts
Name:
~Jess~
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Re: REBUILDING CREDIT
Tell your friend to join the forums on
myfico.com and creditboards.com
Your friend has Orchard so most likely will not be qualified for BB rewardszone since both are HSBC and HSBC only allows one card at a time during rebuilding stage..
It is VERY possible to rebuild credit easily and quickly if the correct steps are taken. I helped someone go from high 4's to 700's in under 18 months after BK.
Number one step is knowledge. PLEASE advise your friend to join and read both sites. Both have post BK forums
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| Posted 6/29/10 3:32 PM |
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Jessica
I'm a mommy :)
Member since 1/06 7322 total posts
Name:
~Jess~
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Re: REBUILDING CREDIT
also tell her to moniter all 3 reports and make sure everything that was included in BK actually states that...IIB.
There should also be no more lates reported after date of filing!
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| Posted 6/29/10 3:34 PM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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Re: REBUILDING CREDIT
I don't think the answer is to apply for as many cards as she can get approved for. If she got a credit card, she should use it responsibly by charging small purchases and paying them off each month in full. My DH got his score up by getting a Capital One credit card (pretty easy to get) and charging his gas each month. It gets paid in full and his score has gone up.
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| Posted 6/29/10 3:41 PM |
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tara73
carseat nerd
Member since 11/09 3669 total posts
Name:
Buttercup
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Re: REBUILDING CREDIT
Posted by Jessica
Tell your friend to join the forums on
myfico.com and creditboards.com
Your friend has Orchard so most likely will not be qualified for BB rewardszone since both are HSBC and HSBC only allows one card at a time during rebuilding stage..
It is VERY possible to rebuild credit easily and quickly if the correct steps are taken. I helped someone go from high 4's to 700's in under 18 months after BK.
Number one step is knowledge. PLEASE advise your friend to join and read both sites. Both have post BK forums
I second the Creditboards recommendation, I don't stray from there so I can't comment on myfico. Go, join, and read. And then read some more. Start in the newbies section, and read some more.
The bankruptcy forum on cb is great too. Many folks (inlcuding mods and admins) who have been there, done that are there to help guide others and it's not judgmental at all (mods will curb that behavior whenever they see it)
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| Posted 6/29/10 3:43 PM |
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Jessica
I'm a mommy :)
Member since 1/06 7322 total posts
Name:
~Jess~
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Re: REBUILDING CREDIT
Posted by JenMarie
I don't think the answer is to apply for as many cards as she can get approved for. If she got a credit card, she should use it responsibly by charging small purchases and paying them off each month in full. My DH got his score up by getting a Capital One credit card (pretty easy to get) and charging his gas each month. It gets paid in full and his score has gone up.
And since the new laws came into play, Capital One is really not as BK friendly as it once was....
Also you stated your friend recently filed? That means BK is not even discharged yet. I would wait at least 6 months after discharge before even attempting next credit report inquiry hit....
Have her spend these months educating herself on best course of action with remaining debt and credit card lines...
The boards even state when the credit cards post balance...some post statement date, some due date... Amex reports a month late on statement date.
Message edited 6/29/2010 3:55:45 PM.
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| Posted 6/29/10 3:54 PM |
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tara73
carseat nerd
Member since 11/09 3669 total posts
Name:
Buttercup
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Re: REBUILDING CREDIT
Posted by Jessica
And since the new laws came into play, Capital One is really not as BK friendly as it once was....
Yep, that's why I said to wait for one of their preapproval offers to come in the mail.
Between the new laws and the collapse of the economy, credit has become much more difficult to obtain, especially for someone fresh out of bankruptcy who has done no cleanup on their reports.
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| Posted 6/29/10 4:00 PM |
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IrishEyes
LIF Infant
Member since 6/10 88 total posts
Name:
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Re: REBUILDING CREDIT
She could try orchad bank (www.orchardbank.com). They will start her off with a low credit limit (200-300), but it will help her to build her credit up.
Good Luck!
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| Posted 6/29/10 4:03 PM |
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dm24angel
Happiness
Member since 5/05 34581 total posts
Name:
Donna
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Re: REBUILDING CREDIT
we used Credit One bank and Orchard to start rebuilding, then after a bit, applied for capital one, nice low interest rate and cash back rewards, and they continually raised our limits after paying on time / in full.
also GE money bank cards are actually very easy to get. i think I got Walmart and Gap with pretty bad credit at the time.
IMO, store cards stink b/c of the rates, but you can usually get good deals and if you pay them in full each month/use can be great to build credit.
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| Posted 6/29/10 10:28 PM |
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