General Question

talljasperman's avatar

How does someone rebuild credit after an illness?

Asked by talljasperman (21863points) May 17th, 2010

I got severely ill and couldn’t pay my credit cards… or student loans… I was so ill that I didn’t keep in contact with my creditors… My credit card company refuses to let me pay my $1200 debt that I had 10 years ago. I’m somewhat recovered and am getting better everyday…and I would like to buy books and classes on the internet that cost over $100 (the maximum gift cards go)... I keep applying for credit cards and they keep denying me… Am I finished with credit cards and loans for the rest of my life? How can I rebuild my credit to at least $500… and will I ever get another student loan… I live in Canada… I am still ill, but not forever… I don’t have a job yet and I’m on permanent disability.

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2 Answers

SeventhSense's avatar

Get a deposit style card. You deposit a small amount in a credit account and they match the funds. It can be small like 100 dollars but it reestablishes credit. After a couple of months and you show a history of on time payments they may increase the credit line. Also in short order you will have offers from other regular credit cards. It just takes one to break the ice. I went through a bankruptcy and one of the same creditors that was discharged in the bankruptcy for about 5,000 dollars extended me a credit card again in less than a year! They make billions. Losing one is just a drop in the bucket to them.

shirleylopez's avatar

I believe another reason you are being denied for credit cards is the fact that you do not have a job and on a permanent disability. The credit card company is thinking that you might have difficulty paying your credit card debt if they approve you application.

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