No credit card!

[Mori]

Does anyone know how to get a credit card if you have a bad credit rating? I declared bankruptcy many years ago & ruined my name as a result. I would like to have one credit card to help re-establish my credit but I'm finding it impossible. :confused:

[Beachgirl]

Mori how long ago was the bankruptcy?

There are a couple ways to get a credit card, secured - in which you prepay and money is deducted from card, and second is to start with a card other than the big guys, like a gasoline company credit card or a department store credit card to reestablish credit.

Here is a link to a website for Ben Dover - he has great info regarding bad credit and rebuilding credit http://bendover.com/default.asp

Hope this helps

[Melislite]

Starting out with Gas cars & Department store cards are a great idea, but the interest is really high...just remember that you do not have to be spending high, most creditors look for payments made on time for at least 6 months. Also if it has been several years since you declared ( depending on your state) you could be ok now!! Good luck, I wish you well!!!

[madbo]

Does anyone know how to get a credit card if you have a bad credit rating? I declared bankruptcy many years ago & ruined my name as a result. I would like to have one credit card to help re-establish my credit but I'm finding it impossible. :confused:

Mori, I see that you're in Canada. The only secured credit card that I know of in Can is Home Trust (http://www.hometrust.ca/securedvisa/) . I think you have to make a deposit of $1500, you can borrow up to that amount against the card at that point. If you make small purchases each month and pay them off on time you'll build up credit. After 12 months, if you've paid your bills on time (it's important to actually use the card, even if it's just for a tank of gas or a pizza), you can contact Home Trust and ask to have your deposit returned.

At that point you can approach your personal banker and ask if he/she will help you get a regular card through your bank.

Another good way of re-establishing your credit, at least in Canada, is to get a car loan on a used or new vehichle. Many places will help you, even with bad credit, and as long as you make payments on time for a year or more, your credit will improve.

You have to make sure that you don't fall behind on any bills during this period. Even a cable bill that's overdue for a few days can have an impact on re-establishing your credit so make sure you pay your bills on time, every time.

If you have no late payments on any bills showing for 12 months or more it shows that you're working to improve your credit history and spending habits and will go a long way to re-establishing your credit.

Good luck!

[Mori]

Thanks for all your replies & advice. I had seen Home Trust while searching on the internet, but didn't know if I could trust them with sending money. Are they a trustworthy institution :confused: ?

[madbo]

Thanks for all your replies & advice. I had seen Home Trust while searching on the internet, but didn't know if I could trust them with sending money. Are they a trustworthy institution :confused: ?

I learned of Home Trust through a mortgage broker a couple of years ago, and while I've never had any dealings with them, from what I understand they are legitimate.

[homeschooling_momma]

WE do not have credit cards nor do I want any.....we save then we buy. IF we cant save and buy then we just dont do it....

God bless,
Kimberly
(Alabama)

[Mori]

Thanks madbo, I'll look into it. :)

[Beachgirl]

I have credit cards, but only use them if I can pay them off the next month. If I can't pay for what I want I simply can't have it until I have saved for it. Even if I have money in the bank to pay for it I put it on a credit card. I do not and never have carried a credit balance.

That said -Credit is an important part of our financial life. I worked for a company in sales where I traveled 50% of the time and had to have a credit card for expenses that included my airline tickets, rooms, gas, etc. I was issued a company credit card with my name on it. Had I not had a good credit rating I would not have been hired.
Having good or bad credit It affects the interest rate you will get on mortgages on cars, etc.

It truely is worth working to rebuild your credit, hang in there, and get whatever help you need to stay on track. :)

[debster]

We don't have credit cards either and haven't missed them a bit. The question I have is we are about to rent a car and enterprise will rent us a car without a credit card if we give them two proofs of residence and 250 dollars down. We were all prepared to do that but a friend of mine told me that we might want to get a credit card just for that purpose because it would be cheaper. I don't understand that reasoning. Do you know what she means?

[Kate]

Cell phone companies do this, too. If you have no credit or bad credit, they will make you put down a hefty deposit in order to get some sort of compensation if you quit paying your bills. The rental companies must be doing this, too, since you don't have any credit. They have no way to report you if you rent a car from them and then don't return it. When they have access to your credit card, the company is pretty much guaranteed they will get some kind of money from you.

I think credit is a good thing. It just depends on if you use or abuse it that can make it bad. :) But in today's age, I think it is essential.

[YellowRoseTex]

Debster,
Many years ago when I was in my early 20's, my parents sent me to Florida for a much needed vacation. They had taken care of all the reservations, including the rental car. When I got there, they asked for a credit card, which I did not have one at the time. They would not rent me the car without a credit card. I ended up going to another company and had to do lots of begging, pleading and crying to get them to rent me a car. It's probably even more difficult today. When I returned home, the first thing I did was apply for a credit card.

I'm not sure what your friend means that it would be cheaper if you used a credit card. I don't think it will cost less in the end, but you won't have to lay out cash as a deposit. I'm fairly certain that the company will apply your deposit to your total balance.

[GirlyGirl]

On a previous thread about greatest regrets, one of my regrets was that I ever signed up for that first credit card. My husband and I have spent years trying to get out from under the credit card nightmare and living payday to payday. I have not been able to go back to school and I have had to stay with a job I do not enjoy because I get paid fairly well...for somebody without a degree or specialized training. I would only sign up for a credit card if you know absolutely, beyond a doubt, that you wont use it except for things like renting a car. In my opinion, credit cards are a vacuum that sucks us dry! The only problem with having a credit card for special things like renting a car is that you have to use it every once in a while so that it does not get cancelled or they dont raise your rate.

My advice to young married couples or high school graduates is to pay cash for everything. I will never buy a new car again and I will never use a credit card again. I have learned a hard hard lesson. There are many times that I wanted something badly....then, because I had to wait until I had cash, I realize that I dont really want that item all that much after all!

[Seashell]

Sometimes it is of benefit to pay with a credit card. If you have a dispute about an item or service purchased, report the problem to the credit card company and you don't pay the amount or get charged interest on the amount until the dispute is settled. If you paid by cash or check, you've probably lost those $$.

I've had credit cards for many years. I get a statement and pay it in full. I've never paid a penny of interest on any credit card.

[sk8ter]

Mori
My husband and I declared bankrupsy last year and got our discharge papers in the summer. My husband is getting a secured card through Capital One. He applied on line. You could also get a credit card through Credit Union that the limit of the card is what you put on it. So it it like a debit / credit card. Hope this helps.

[JoRaeMi]

Re-establishing credit is so important! You definitely need to get your bills paid on time.

One thing I have found helpful is to contact each company and request that I be billed on a particular day. I have as many bills as possible due on the same day - that way I don't forget about any of them!

I also have a little log that I made on a spreadsheet that I fill in each month (I've done this for about 8 years!) when I pay a bill. That way I know it's paid and I can also track my spending on these items easily.

Good Luck!

[Casperkat]

most hard money lenders - capitol one, chase financial, Orchard Bank, Benefiexcellent crediBeneficial, & Providian have divisions that handle less than stellar credit. your FICO and time since the BK declaration will determine if you have to go this route. 740 FICO and up is considered excellent credit. 680-739 is good. 640-679 is OK. 600-639 is considered poor to ok. below 600 is considered high risk. There are ways to improve your credit score once you have a CC or other form of credit. Try a financial division of a direct lender (bank) and see how that works out.