Cat M
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As someone who has been thru this, let me say it's going to be tough, but not impossible. Now that you have bad credit, you are more likely to get a credit card than with zero credit. I have made all the mistakes with the credit cards that you can pretty much make. So I have learned, and discovered how to fix what I broke. So listen, you have two paths that are the best for you to go down.
First, if you can at all do this, then pick this one. Get a secured credit card, not a debit (they aren't reported). If it means cutting out coffees and fast food for a month or two, it will be worth the lower interest rate in the long run. Once you start getting your credit cards, you are expected to keep them as proof of your credit history. So if you are offered a 30% interest card now (which you will), then you won't be able to lower that percentage down the road. Most of those companies will offer you a new one at a lower percent once your rating is better, but you will wind up cancelling the already established one if you want to get rid of that interest rate. That will reduce your score again. So, if you can get it, get a secured card. You have to save up for it, and you still have to make payments like a regular card, but you're going to get a better rate, and maybe less fees.
Secondly, you can get a card most likely from capital one or wamu. With cap1, you will have annual fees and processing fees right up front that you will have to pay. You will probably only be offered $250 to begin with, most of that will be gone due to the fees. With wamu, you will be offered a 30% card, but maybe no processing or annual fees. Keep in mind, that you will have this card for a long time.
For any of your credit cards, don't get more than two to start with. Keep your usage at 30%, no more, and pay in full at the end of the month or sooner. Preferably for gas only or a cell bill, that will help establish your usage and payment history. This is very important if you want a decent interest rate card sooner than five years. Set up an automatic payment for your credit card at least five days before the due date. Pay more than what is minimum owed if you are going to leave a balance. Even paying a dollar more than minimum is considered more than minimum to the credit bureau, so $1 or $200 doesn't matter.
I know it's really hard to have patience when you're starting over again. If you have some patience now, and are diligent about following the steps for repairing your credit now, lenders will see that you've worked hard and your credit score will be high for someone with a bankruptcy. Good luck. |
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