I am clearly flagged as “Bad Credit Risk” due to my filing of bankruptcy. The credit reporting agencies all show the bankruptcy.
So today I got my first offer of a credit card!! So much for bankruptcy killing your credit worthiness.
Now, of course, my credit rating is bad, really bad. So this credit card offer is bad too. The fine print says that I could get a credit line up to $1500. I would have to pay an annual fee of $69, and the interest rate would be 23.90%. I might only get the minimum credit line of $200. They would charge the annual fee to the credit card, so I would start out paying them interest right away!
Why would someone want this? I sure don’t.
It is a way to re-establish your credit worthiness. You are paying for the privilege of having a credit card. You make regular payments, and your credit score starts to rise. Eventually, you could get a higher credit limit, lower rates, a card without the yearly fee.
But should you get one? I would wait. I don’t want to get back into credit card dependency again. If I were to default on a credit card (or other loan) during or after bankruptcy, I would be stuck with the debt. It cannot be discharged, and you cannot file another bankruptcy for eight years.
Here is what an article from MSN Money says:
- Nothing in credit is “forever.” A bankruptcy legally can remain on your credit report for up to 10 years, but its effect on your credit score can start to diminish the day your case is closed — if you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
- You have to get and use credit to build your credit score. Living on a cash-only basis may be a smart choice for those who really can’t handle credit. But if you want to rebuild your credit score, you can’t sit on the sidelines.
You visited a few times and I would appreciate your thoughts on this post, why not comment?
Just wondering, you said your credit score is bad…what is it right after Ch. 7 shows up on your credit report?
Thanks and a great blog!
As always, I am behind on my to-do list. I am checking on the best deal to get updates to credit ratings. Perhaps a secured credit card that provides continuous credit rating updates (had one before, nice feature). Otherwise, I will subscribe to a service like MyFICO to do that. This is definitely on my TOP to-do list, and a web page with updated scores is planned for real soon!
Thanks for prodding me!
BKstory