Credit Cards After Bankruptcy

Community Leader
Registered: 03-17-2003
Credit Cards After Bankruptcy
6
Sun, 11-11-2012 - 9:25pm

Whether or not you have filed personal bankruptcy or have not filed, what are your feelings on credit cards?  Will you keep at least one credit card account?

Carolyn

Avatar for CMEvelyn
iVillage Member
Registered: 05-29-2012
Thu, 11-15-2012 - 7:35pm

I think it's good to have a credit card, even if just for emergencies, although, I've never been able to have one and not use it.

iVillage Member
Registered: 08-18-2008
Sat, 11-17-2012 - 1:05pm

All of my cards were listed in my BK per advice of my attorney.  I am now 9 months post BK.  I have obtained one card that I use for gas and pay off every month.  If you want to start establishing your credit score, you need to have a card to do that.    

Community Leader
Registered: 03-17-2003
Tue, 11-20-2012 - 6:09pm

I too think having a credit card is a good idea.  In fact I have found credit cards can be beneficial in the household budget.  For example I recently needed to make a household purchase that had not been budgeted for and took advantage of a 0% interest offer from one of my credit cards.  This way I could make the necessary purchase (which was even more economical because the item happened to be on 50% off clearance sale) interest free.  I hate paying interest and was happy I could make the purchase with the credit card's 0% interest offer.  Smile

Community Leader
Registered: 03-17-2003
Tue, 11-20-2012 - 6:13pm
Good point Stefson: a credit card can be an effective way to re-establish credit, especially after a bankruptcy. Creditors look to see how well you manage money after filing and a CC will provide this sort of information in short order. There used to be some schools of thought that it would be best to not pay a balance off every month---to pay interest then pay off the account, but I believe your practice of paying off the balance every month is best.
iVillage Member
Registered: 11-28-1999
Sat, 12-01-2012 - 5:40pm

One additional reason it might be good to have one credit card is that if you ever do any traveling, rent a car, etc. you usually need a credit card to do it--I imagine that you could use a debit card also, but for example, this summer I got in a car accident--I had to rent a car for a month.  The insurance company of ther person who hit me did end up paying for it but I had to put a deposit on my credit card initially--then when the rental company got paid, they credited me.  I wouldn't want to have to w/d that money from my bank account.

Also if you can use cards judiciously and not over spend, then sometimes you get benefits.  I have a lot of store cards that will give you bonuses, extra discounts & cash back--I was in the habit of paying them all off in full every month (until I got in recent financial difficulty, which was due to the cost of health insurance).

iVillage Member
Registered: 10-01-2008
Thu, 12-27-2012 - 3:12pm

We are currently still in Chapter 13 and have 60 more weeks of payments (I finally can smell the end).  My husband has a debt card separate from our household account and deposits his travel allotment checks into the account and uses it as a credit card.

We have discussed the issue of credit cards after we are discharged, but right now we don't want one.  As far as credit goes, we are currently paying our mortgage outside of the plan, so we do have credit being reported on that open account.  Time will tell, but right now we are saying NO to a future card.  We got into way to much trouble with cards and are afraid to go down that road again!