When you have time everyone please read this article]http://www.usatoday.com/money/industries/banking/2008-10-30-credit-cards_N.htm?loc=interstitialskip[/URL]

Can you believe this ? To actually forgive 40% of someone's debt and give them liberal time to pay off the remainder of what's owed ? So what about us who have paid on time, every time, not went out and charged something having no idea of how were going to pay it off, out utilization is under 3% and we have basically played by the rules? In a nutshell this is the irresponsible getting a second chance. Not cool..............

I agree, it's uncool....can't they just spread the 40% across the board? just to be fair to the responsible payers...

I realize this topic may be completely un-related to this thread, but this was the closest that I could find on the forum.

For those of us (like me) who have suffered from charge-offs in our past and have had the pleasure of having to deal with collection agencies. I wanted to share an outside website that has helped me fight a lot of stuff off my credit bureau report. It is full of great information about different collection agencies and how to fight them, most importantly for those of us (like me again) who have been sued from a collection agency in the past, it will even help you retain an attorney (for little or no cost) in your area that will fight for your rights and possibly expunge your record. I just wanted to share this with everyone on the network and I hope that you all find it very useful.

http://www.budhibbs.com/index.html

Terry684, first of all welcome to FG!

When you pulled your FICO score(s), you pulled your score(s) from one more credit bureau. You can log into your account and check to see what credit bureaus belong to the score(s). I always encourage everyone to buy their FICO scores because it's the score that counts. 90% of lenders use the FICO scoring system to help make a decision on your application.

I would apply for Cap 1 and HSBC cards because since you're going to take inquiries, you should have cards that you would be able to use everywhere credit cards are accepted and build credit at the same time. Gas cards are a good choice credit building too but they're not as easy to get approved for as they were in the past.

After the reading the post on which credit card companies forgives people for bankruptcy, can someone tell me which cc companies forgive people for charge offs? Seven years ago I had financial problems and couldn't pay my credit card bills. I had a Macy's, JC Penney, Chevron, Shell, Target, 2 Capital 1 visas, Fingerhut, Kmart, and Texaco and they all became charge offs. Only Shell is on my credit report right now and all the others have fell off my credit report. Shell will be coming off in Feb. 2009. I paid for my FICO score and it was 663. I applied for a Best Buy store card last month and HSBC denied me because of the Kmart card. I know Citi and GE owns some of the credit cards that were charged off. Do Capital 1, Citi or GE or HSBC give second chances for their credit cards for people who had charge offs with them? I know those cc companies are at the top of the list with offering different credit cards. I don't wanna apply for a credit card and get denied leaving an inquiry on my report if the cc companies don't give second chances. I have an Orchard secured card that I pay off each month and I keep it below the 30%. I got that card in August 08. I'm trying to rebuild my credit. I haven't checked my scores with equifax, transunion or experian. I'm not sure if they are higher or lower than my FICO score.

The powers that be have rethought the whole thing:

http://www.usatoday.com/money/perfi/credit/2008-11-12-credit-debt-forgiveness_N.htm

Bingo!

Good point Meya about the debt consolidation ads. To add to that, it will reduce the number of BK filings and because they can pay it back interest-free it will help that consumer to maintain their credit or get their credit back in order while they are getting back on their feet without getting ripped off by those debt consolidation places. And maybe we can see some relief from all them fees the banks charge

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I agree with you 100%.
I would imagine the requirements are pretty stringent for a consumer to take advantage of this. I can't see banks willing to just dole this out like candy. It's kind of like the homeowner rescue plan, it doesn't seem fair to those who have always paid their mortgage, but when faced with your property values sinking in the toilet due to neighbors foreclosing. It makes a bit of sense.
There will always be those who take advantage of anything they can, be it running up debts and filing bk or just plain walking on their debts.
You'll always have deadbeats. Some people really do need a hand up or run into a rough patch , then you have the useless POS's who mess it up for everyone.

Even though I've paid on time and still have some ways to go and haven't been late in the last 12 months, I actually think this is a good idea for the consumer and the banks.

Consumers can avoid bankruptcy and the banks can avoid not getting a penny.

Rockin35

Huh? Are you ok? Alright, I think it is time to put the candy or the drink away smcc. You did nothing wrong......................but then again, I am trying to figure out what you are apologizing for. Now I am scratching my head!

You just spoke how you felt, free speech like I said before. If something was wrong, the post would have been deleted, edited, or in-fractioned. You know you are all good. Say what you feel, besides, we all agree with you.

Smcc,

I am newbie and I enjoy reading your posts and insights. I didn't see any bad behavior from where I am sitting.

I apologize Meya and Honeyb for my behavior. As always cooler heads prevail. Everyone here tries so hard and goes the extra mile to do the best that they can and to do the right thing. The article just un-nerved me and by no means did I want to show bad behavior here. Again, I apologize..............

Meya, I agree they should be able to tell those of us who have been responsible with our bills and have come upon hard times versus those who will try to benefit from a program designed to help those who really need it. Kinda reminds you of the abuse of Welfare in the sense; they are paying for their groceries with food stamps while wearing their 2 carat diamonds and full-length minks at the checkout.

Smcc,

Tell us how the BK process works. I was always under the impression that whatever you file for BK had to be scrutinized or is this something that they started doing as part of the BK reform a couple of years ago?

It's my impression that they are proposing as we have stated for those with serious hardships similar to most employer-only contributed 401Ks or 403Bs which allow you to withdraw only if it is a hardship meaning you have to prove to bare bones the need for the money; in other words, it is a supplanted resource (meaning if the person gave their right arm it is nothing else they can give) rather than supplemental (assistance type program, minimal proof needed, goverment or taxpayers will pay for it).

I agree with you totally on the mismanagement, that they should not be eligible for this as may be the case under BK.

"Sorry for rant...." Ahh come on, this is free speech, and you are just telling it like it is.


Some people don't look at it that way, you are going to find a lot of people that are going to take that advantage of 40/60 regardless if they can afford to pay it or not. But, I have a funny feeling that those who do take advantage of it, is going to be telling on themselves. I believe it is a set up for banks to see who is qualified for higher cl and who is not. This is just my opinion but I do believe there is going to be a "sneak catch" behind this. I believe that those who stand up, take responsibilities to what they charge, and pay off the way they normally do (in nice lump sums) are not going to have a problem with their creditor in the future when it comes to cli's and cld's.

Tell me what you think guys!

Ok guys I understand that anything can happen and we all can be in a dire situation and those that have come upon hardship are the exception to the rule. Thing is the one's that are in dire straits because of mismanagement, irresponsibility, or just don't care now have and "out" sort of speak. So what about the rest of us who day in, day out, month in, month out, make more than the minimum payment, make the right decision not to purchase something not having any idea of when or how were going to pay it off, who have slowly built up credit limits and credit scores supposed to think? Please don't tell me "You are in a position to get anything you want while these people who want the same thing will take them much longer because of this new financial bailout for the those that have been irresponsible in the past because of their own doing.

Then to top it off your going to decrease my limit ? I hear ya Meya and Honeyb because I had to claim BK way back when and I learned by my mistakes and it took me years to get to where I'm at but this is to those people who went out and purchased that "E" Class or "5" Series knowing good and well they were beyond their means and then decided to charge up their credit cards to the sky. Like Suze Orman says "Trying to impress people you don't know with items you can't afford"

Sorry for the rant.......................