baffled, looking for help!

Discussion in 'Credit Talk' started by cr@sh, Oct 30, 2001.

  1. cr@sh

    cr@sh New Member

    Just bowed out of some serious problems with a chapter 7 in september, wrote everything off, divorce crap.... had to negotiate w/ MBNA to avoid a dispute during the bankruptcy, so I am into a 24 month pay plan to finish that off, reaffirmed my vehicle , paid 1.5 yrs on the vehicle 6 yr loan so far, and also have a school bill that i am current and paying on...

    so how do i get my credit going again? just to see what was out there, i trashed an experiean app that was sent to me with all those fees, and then a providian card app came with no annual fees... so i sent it in, bingo

    unsecured credit card handed to me, albeit with a low low balance, but does that mean that my credit rating isn't as terrible as i thought? I am getting my reports this weekend,

    I've combed the boards looking for some help to right this ship, i have great income, remarried and want to get another house in the next year or so, and have heard bits and pieces of the best way to get my credit patched up, from borrowing against bank cds to getting dept store cards... i am confused and looking for some help...

  2. uniondiva

    uniondiva Well-Known Member

    I have never filed bk, but here are some hints. Any credit you get, make sure you pay on time and do not go over the limit. Check the board and try for the cards that have the bst chance to go from sub prime to prime.

    Have some patience. We are all facing some credit challenges or we would not be here. There is a lot of good info here and more important, people who are willing to help.

    Once you get your reports you will have a clearer idea on what you are working with. Also, check threads for bk, chapter 7 for info.
  3. PsychDoc

    PsychDoc Well-Known Member

    Providian may have its detractors, but they are superb about giving unsecured credit to people with trashed credit.

    Keep in mind that this policy may be tightened up in the next few months, because Providian has experienced some negative real-world financial backlash as a result of their gambling on subprime customers the way they have. Their stock valuation has gone to hell, and their investors are suing. Relax, though, you've got the card now, and you get to keep it!

    So, to answer your question directly: Acquiring an unsecured credit card from Providian is a TERRIFIC way to start rebuilding your credit. I second uniondiva's suggestion that you pay on time and never go above your LOC limit.

    Credit rebuilding (sometimes called "repair") has two components: 1) acquiring new credit (as you have done), and 2) disputing negative existing tradelines on your credit bureau reports. (You'll hear people here use the term "CRA" or "credit reporting agency" as opposed to the colloquial phrase "credit bureau" -- they mean the same thing.) As for number 1, you may want to apply for a regular Target guest card next. As for number 2, stick around this board and begin to read awhile -- there will be a lot of useful learning ahead.

    All of that said, I apologize if I've said some (or much) that you already know! Regardless, I hope some of this was new and useful for you.

  4. cr@sh

    cr@sh New Member

    Thanks for the input! I have searched and searched for some examples of starting up tactics, and have this one question:

    What is the best way for me to use my new credit? Do I charge - payoff? Or do i charge, carry a balance, or charge up to max and payoff balance? Don't know if its just time or a charging methodology that will increase my score.

    Also, my wife has great credit. Would becoming an authorized user on her card(s) be a good thing, or will it drag her credit down?


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