Credit Cards for Post Chp7

[Dis0314]

Need some help with my credit. We filed chp 7 this past Feb and now I feel like its time to start rebuilding the credit again. The problem I'm having is where to go for first few cards..

Incl in Chp7
CapOne
Barclay
AMEX Plat
Chase
and handfull of retail stores
GE
my credit union

I think thats about it.. I did have a Discover card but zero balance on it.. they closed it once I filed.

So who nowadays will give us a chance?

I should add all the cards were under my name (except AMEX) and my wife as an authorized user on them all. So would it be best to use her name to score the card then add me on?
She gets credit card offers all the time in the mail, even from CapOne!?

[AngelinaCat]

Actually--and this is only my opinion--but it looks like that lengthy list of CCs and your inability to handle same, got you in this mess in the first place. My advice is to forget credit cards, and learn to live on a 'cash only' basis. It requires a lot of self-discipline, and planning. If you want to purchase something, SAVE up for it. And decide whether the item in question is a NEED or a WANT.

At the same time, build up an Emergency Fund--save, save, save--for when you have something major happen like a hot water heater goes out, or something goes wrong with the car.

Rebuilding your Credit Score should be the last of your priorities.

[Dis0314]

Actually--and this is only my opinion--but it looks like that lengthy list of CCs and your inability to handle same, got you in this mess in the first place. My advice is to forget credit cards, and learn to live on a 'cash only' basis. It requires a lot of self-discipline, and planning. If you want to purchase something, SAVE up for it. And decide whether the item in question is a NEED or a WANT.

At the same time, build up an Emergency Fund--save, save, save--for when you have something major happen like a hot water heater goes out, or something goes wrong with the car.

Rebuilding your Credit Score should be the last of your priorities.

lol yeah typically you would be right but I've always had good credit and still would be just fine if it wasnt for the 4 million in business dealings that i had personally signed on that left me riddled with a big mess and forced into bankruptcy. My personal credit was just caught up in it unfortunately so now its time to rebuild my credit life to where I once was.

[AngelinaCat]

lol yeah typically you would be right but I've always had good credit and still would be just fine if it wasnt for the 4 million in business dealings that i had personally signed on that left me riddled with a big mess and forced into bankruptcy. My personal credit was just caught up in it unfortunately so now its time to rebuild my credit life to where I once was.

Our Credit Score before BK was 820--better than that of Consumer Advocate, Clark Howard. And yet we still fell. I am just giving you a friendly warning.

[AngelinaCatHub]

lol yeah typically you would be right but I've always had good credit and still would be just fine if it wasnt for the 4 million in business dealings that i had personally signed on that left me riddled with a big mess and forced into bankruptcy. My personal credit was just caught up in it unfortunately so now its time to rebuild my credit life to where I once was.

Pardner, you are in total denial. I predict that you will become a repeat case. BK above giving a person a "new start" in life, should be a learning process. You apparently are not learning a lesson. When you borrow money you do not have, you mortgage your life's time to another. You become subservient to another. You loose control of your future. BK is a gift. Don't abuse it. Hub

[bcohen]

I have heard that Capital One will approve you for a new credit card, even after discharging one in bankruptcy. None of the other lenders which you mentioned will do that, and Chase and Discover will deny you for merely having a bankruptcy on your credit report even if you didn't discharge any debt owed to them.

Of course, there are many lenders which will try to "help you out" by offering high-cost, fee-laden credit cards with absurdly low limits that are mostly gobbled up by the "account setup fee" and annual fee. Examples include Credit One Bank and First Premier, and you should avoid these like a disease.

[newchance15]

I have a capital one secured card then 2 months later they approved me for a unsecured card (I filed 3/20/15)

[RichM]

My BK was discharged a little over five years ago, and my FICO is now in the low- to mid-700s. That's not bad considering that I haven't been aggressively working on it like some people do. It's been more of a back story for me than something I put a lot of emphasis on.

Nonetheless, I've learned a few things about various cards that might be helpful in rebuilding credit, so here goes.

Immediately Post-BK

You can get a secured card from many issuers. Probably the best right now is State Department FCU. Very low interest rate and no credit pull, last time I checked. First Tech FCU is also very good, but the interest rate is a bit higher. Your local CU may also be able to do something for you immediately post-BK. Many credit unions will use a CD to collateralize plastic, but don't advertise it. Capital One will also issued a secured card to pretty much anyone who has a pulse, and is pretty good about graduating them relatively quickly.

Firestone (issued by CFNA), issued me an unsecured card with a $1,200.00 limit a week or two after my BK was discharged. It came with no annual fee, some arbitrary interest-free period on purchases (six months I think), and Shylock interest rates thereafter. I have used it a few times over the years for tires and car repairs, and I still have it (with a zero balance now). They have never increased my credit limit. It's a good sock-drawer card, though, plus it can be used for emergency car repairs if you need them. Just don't exceed the interest-free promotional term.

Shortly After BK (A Few Months to a Year)

If you're a veteran, USAA has some secured card options including a secured Amex (but they do hard pulls). Approval is NOT guaranteed for a USAA secured card. I wouldn't suggest applying the day after your discharge.

Capital One is pretty good about issuing unsecured cards post-BK with low annual fees and moderately high, but not ridiculous APRs. They're a bit slow in granting increases. You probably won't get one for at least two or three years. Then they loosen up and grant a big increase, which if not abused may result in an offer to upgrade to a slightly better card (Quicksilver Rewards in my case). They're not horrible. They're one of the early post-BK cards that I've chosen to keep.

Credit One is a bank specializing in issuing cards to people with bad credit. They get a lot of bad press here and elsewhere, most of which is undeserved in my opinion because the terms, while horrible, are very clearly set forth in their offers. Both the APR and the annual fees are very high, but they make no secret of that. I had one of their cards for a couple of years and they never did anything underhanded. I have since closed the card because I've gotten better ones, but I harbor no ill will toward them. They were up-front about the terms and they took a chance on me when few other issuers would.

First Savings MasterCard is a similar sort of deal to Credit One: easy approval, but high annual fee and APR. They're a bit more cautious about credit limit increases than Credit One. But on the positive side, when First Savings hits you up with the $75.00 annual fee at renewal time, they'll probably waive it if you ask them to (assuming you've made all your payments on time). As with Credit One, they issued me a card when few other issuers would. I have since paid it off and closed it, but I hold no ill will toward them. They were okay when I needed them.

Synchrony Store Cards tend to be very easy to get, have no annual fee, offer interest-free periods on major purchases, and charge Shylock interest thereafter. If you're so much as a minute past the interest-free promotional period in paying it off, they will tack on all the interest from the date of purchase; so if you go this route, make sure to pay the bill within the interest-free period. (This is also the best way to get a credit line increase. They'll increase your credit limit astronomically to try to rope you in to paying interest.) Also note that if you don't use these cards at least once a year, Synchrony most likely will cancel them; so if you want to keep one of these cards, make sure to use it at least once a year.

Some examples of Synchrony Store Cards that I personally have are CarCareONE (this is one of my favorites, for reasons I'll go into in a moment), CareCredit (which can be used to pay some doctors, dentists, opticians, vets, and so forth), and Husqvarna (for outdoor power equipment like snowblowers, chainsaws, and so forth). I have all of these cards, all with zero balances except for Husqvarna. I recently used it to pay for about $150.00 worth of repairs on a snowblower, and I'm paying them over three months so they make a little interest on me. They never have before, and I don't want them to cancel the card; so I'm throwing them a little bone this time. I also used to have an appliance card from Synchrony that was canceled for non-use.

The CarCareONE card is one of my favorites because they offer crazy generous rebates at Discount Tire Direct. Coupled with DTC's or the tire manufacturers' own rebates, you can save close to half the cost of new rubber or wheels. Just make sure to pay it off within the interest-free promotional period (usually six months or a year, depending on the total price) or they'll slap you with the back interest. The other thing I like is that CarCareONE can be used at Exxon and Mobil stations, so it's easy to keep alive. Just buy some gas with it once in a while. (It's also accepted at Midas, Meineke, and many other auto repair shops if you actually do need some major car repairs when you're short on coin.)

One Year Post-BK

BarclayCard MasterCard. A year after your BK has been discharged is when BarclayCard seems to become interested in you, assuming that you've re-established at least some credit in that time. Barclay offers low or no annual fee, moderately high (but not Shylock) interest, and generous but realistic credit limits. I've noticed a pattern of roughly doubling the credit line every year, usually in November or December. It's really not a bad card, especially if you usually carry no or a low balance. I still have mine. I think my limit is somewhere around $6,000.00 now, but I haven't checked in a while. It started at about $1,500.00 or thereabouts a few years ago.

Barclay's is also easy to deal with. I missed a payment after Sandy when so many things were disrupted by the storm and flooding. Actually, I honestly thought I'd paid them, but apparently I didn't, probably because of all the other havoc going on at the time. Whatever the case, when I got the late notice a couple of weeks later, I called them, apologized, and explained that the missed payment had simply been an oversight on my part due to the disaster. They immediately waived the fees and restored my account to good standing. They also apologized because apparently I should have automatically been placed in some group of cardholders who were likely to have been affected by the storm. They're a pretty good outfit, and their card is one that I've chosen to keep.

Amazon, Wal-Mart, and Sam's Club Store Cards. These are also issued by Synchrony and have their usual terms (no annual fee, but high interest). But unlike most of their other cards, they seem to deny applicants with BKs within the past year. I have and regularly use my Amazon store card because I also have Amazon Prime, so I get 5 percent cash back by using the plastic. I usually pay it off every month. I also have the Sam's Club card and usually pay it off every month. I used to have the Walmart card, but have since closed it. (The Sam's Club card is also accepted at Walmart, and I didn't need both.)

Two Years Post-BK

If you're in the market for a computer, the Micro Center Credit Card (Wells Fargo) may be a good option. It offers the usual store-card terms: no annual fee, interest-free promotional period, a high interest rate if you exceed that period, and generous credit limit increases. Micro Center is my favorite tech retailer anyway, so I took the opportunity to get their card. If you're not as big a geek as I am, then this one's probably not for you. They do seem not to like issuing to people within two years of BK, however.

Two years also seems to be the point at which you can start getting good interest rates on car loans and personal loans at credit unions.

Five Years Post-BK

At this point, I'm pretty much recovered, as far as I'm concerned, meaning that I can get most kinds of loans at "normal" interest rates. My FICO is in the low- to mid-700's, which isn't what it was before the bottom fell out and I filed BK, but it's not horrible either. I probably could have done better had I put more effort into it. But all things considered, I'm happy where I am.

Richard

[RichM]

Another good one to try a year or two out is Gettington.com, a online retailer owned by the same company as Fingerhut, but with better stuff, better prices, and lower interest. The credit is through Web Bank and the increases are generous if you pay on time. There is no annual fee.

They also calculate the terms and the final payment amount for every purchase using either of the two options offered (typically quick-pay over a few months with a lower interest rate, or a longer plan over a year or more with a slightly higher interest rate). So you get to see up-front what the item is going to cost in the end before you even complete the purchase. I like that. It's transparent and refreshing.

Gettington is also a decent place to shop. They have a wide variety of stuff, decent prices, and good customer service. I've found the prices to be close to what you'd pay in Wally World or Target, and sometimes even lower. If I cancelled their card, I'd still keep my account with the store open because they're a decent retailer in their own right.

Richard

[RichM]

Actually, I may have to belay my last regarding Gettington. They just increased their interest rate to 25.15 percent, which apprrantly will be across-the-board on new purchases. The lady I spoke to said she wasn't aware of whether the two-tiered interest based on repayment term will be continued.

Also, I hadn't actually shopped there in a couple of months. I browsed the site last night after I got the interest rate increase notice, and it seems that all the prices have gone up dramatically since the last time I was there. Now the pricing is more along the lines of their sister company Fingerhut.

To the company's credit, they did in fact send out the email notifying customers of the interest rate increase; and 25.15 percent, although very high, is still less than many other cards one can get post-BK, and they're very generous about credit line increases. So maybe it still fits into a credit-rebuilding strategy. But it's not as good a deal as it used to be.

Richard

[sbatman]

If you have a relative in the military now or earlier, if they get a Navy Fed Credit union account #, they can get you one. Navy Fed gave me the 1st secured credit card after bankruptcy. A couple months later, they gave me an unsecured card. Four years out of chap 7, they lent me for a car 72 months at 2.29%.

Just don't burn them. From what I've read, they can bee pretty nasty.