REBUILDING CREDIT AFTER BK

[ficorenavator]

I HAVE BEEN DISCHARGED FROM MY BK FOR OVER A YEAR NOW AND SINCE THEN I HAVE GOTTEN A CAR LOAN WHICH HAS BEEN PAID ON TIME AND RECENTLY I JUST GOT APPROVED FOR A ORCHARD BANK CC WITH A LIMIT OF 700.00 , BUT DUE TO THE ANNUAL START UP FEE OF $150.00 MY AVAILABLE CREDIT IS ONLY $550.00.  MY FIRST PAYMENT IS DUE ON 2-1-11 IN THE AMOUNT OF $30.00(MINIMUM), WHICH I KNOW I WILL BE PAYING MORE THAN THE MINIMUM.  CAN ANYONE PROVIDE ANY ADVICE ON HOW TO HANDLE THIS ACCOUNT REGARDING KEEPING MY BALANCE IN TACT AND PAYING ON TIME.  I DON'T WANT TO MAKE THE SAME MISTAKES FROM THE PAST AS I ONLY HAVE TWO LINES OF OPEN CREDIT!

THANKS

[MarineVietVet]

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@ficorenavator wrote:

I HAVE BEEN DISCHARGED FROM MY BK FOR OVER A YEAR NOW AND SINCE THEN I HAVE GOTTEN A CAR LOAN WHICH HAS BEEN PAID ON TIME AND RECENTLY I JUST GOT APPROVED FOR A ORCHARD BANK CC WITH A LIMIT OF 700.00 , BUT DUE TO THE ANNUAL START UP FEE OF $150.00 MY AVAILABLE CREDIT IS ONLY $550.00.  MY FIRST PAYMENT IS DUE ON 2-1-11 IN THE AMOUNT OF $30.00(MINIMUM), WHICH I KNOW I WILL BE PAYING MORE THAN THE MINIMUM.  CAN ANYONE PROVIDE ANY ADVICE ON HOW TO HANDLE THIS ACCOUNT REGARDING KEEPING MY BALANCE IN TACT AND PAYING ON TIME.  I DON'T WANT TO MAKE THE SAME MISTAKES FROM THE PAST AS I ONLY HAVE TWO LINES OF OPEN CREDIT!

THANKS

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How recently did you get the Orchard card? If it's only been a few months I'd wait another 6 months or so if you intend on seeking another CC in the future. At some point another CC would be in order but do your research and try and apply for a card that will help your situation the most. Don't apply for another card just because you can.

For right now try as quickly as possible to get the utilization on the card you have to 9% or less and keep it at that level every month. I wouldn't use it at all until you get that first fee of $150 PIF.

Just my 2 cents. You'll get other opinions about how to proceed. Only you can decide what might work best for you.

P.S. Could you turn off the all CAPS? It makes things very hard to read. 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[ficorenavator]

Thanks,

I just got the cc this week.  I didn't apply for it, I received a pre-approval offer in the mail and decided to apply since I didn't have nothing but 1 line of open credit. How do I determine how to get the utliization at 9% or less once i PIF the 150 and start using the cc?

thanks

[MarineVietVet]

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@ficorenavator wrote:

Thanks,

I just got the cc this week.  I didn't apply for it, I received a pre-approval offer in the mail and decided to apply since I didn't have nothing but 1 line of open credit. How do I determine how to get the utliization at 9% or less once i PIF the 150 and start using the cc?

thanks

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Utilization is simply the total balance on the card divided by the total available credit. In your case try (not always possible I know) to keep the balance reported on your monthly statement to no more than $63. (9% of $700) That doesn't mean you can't charge more than that during any one month just make sure you time any payments so that the desired balance is achieved several days before the statement posts. Then always pay in full before the due date to avoid any finance charges.

Most cards report on their actual statement date but there are exceptions so make sure you know when your particular card reports to the CRA's.

Have I totally confused you? I have a hard time explaining things as clearly as I should.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

+1 to everything MVV said.

I used an Orchard as my first card coming out of BK.

They are very easy to work with.  Make sure you set up your account online.  Pay as soon as the statement posts if you can - you don't need to wait until payment is due.  If you make the payments online (I strongly recommend this - they are very easy to use online) they post the same day.  Always pay more than the minimum due if you can.  Then continue to make additional payments as you're able.  If you can pay the $150 off as soon as possible that would be a great move, even if it's chipped away by making additional payments $10 at a time.

Orchard reports to the CRA's on the last business day of the month - so be sure your account balance is low on that day.  I always gave myself a few days leeway and kept the balance low (where I wanted it to report) for a day or two ahead of time and kept it there for a few - but you don't have to.  It just kept me from worrying.

Once you start using the card, the balance can be wherever it is during the month (as MVV stated), but on the last business day of the month, you'll want it to be below 9%.  The remainder of the month it can be at 30% or 50% or whatever.  Just keep it down for that reporting date, no matter what.

Best wishes!  I liked my Orchard for rebuilding - it's great!