jamieb80•2d agoProlific Poster

My cousin in Phoenix said 'a $300 secured card got my score moving after my bankruptcy' at a family barbecue last summer.

He explained that keeping the balance under $90 and paying on time for eight months showed the bureaus he could handle credit again, which made me wonder if starting small is the best move for rebuilding after a major financial hit.

3 comments

3 Comments

max2232d ago

Yeah but that's a really slow way to do it... I had a chapter 7 and got two unsecured cards right away. The limits were low, like $500, but using them the same way got my score up faster than just one secured card would. More accounts in good standing helps more, in my experience.

ray_williams2d agoMost Upvoted

Actually, the number of accounts matters less than your overall credit limit. Having two $500 cards can HURT your score more if you use them both, because your total usage is split across two low limits. One card with a higher limit is often better for keeping that usage percentage low.

margaretramirez2d ago

Okay but is the score really that big of a deal right after a bankruptcy? Max223 says more accounts in good standing helps more, but you just got your debt wiped clean. Why rush right back into tracking credit usage and payment dates? It feels like getting right back on the horse that threw you. Just live on cash for a while, the score will come back when you actually need it for something real.