UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: After bankruptcy: secured CC Date: 4/3/2013 2:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 14
he said that to rebuild credit faster, I should cautiously apply for a new credit card (secured or otherwise) and use it every month, spending $100 (or barely above it) and paying it down, on time, every month. As this board understands, he strongly cautioned against keeping a balance on the account. He said at least six months from there, I should be able to apply for another account, but again must maintain the same habits. He said that two years after beginning rebuilding (and maintaining proper spending and payment habits), I should have a good credit score again.

I would agree in principle with your lawyer's advice. However, I would strongly suggest that the amount of credit that you use on the card on a monthly basis be:

- 10% or less of the amount of the credit line on the card (so if you get a $300 credit line, the max you would charge each month would be $30)
- only the amount that you already have available (in cash, a checking or savings account that you WILL NOT be needing for anything else) at the time that you make the purchase - no saying "I'll pay for it with the check that will come in next month". You may want to somehow set aside that money (like moving it to a different account, writing it in your checkbook register, etc.) so that you will know that this amount is no longer available for you to spend - it is being saved to pay off the credit card.

As far as which card to apply for, if you already have a relationship/account with a particular bank, you may want to see if they have a secured card with reasonable terms, even if they aren't on the list that you found.

AJ
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement