Denied for a Secured Credit Card???

[shipo]

Okay, maybe I'm missing something, I had my Chapter 13 discharged on 04-Mar-2020, and while it has yet to be "Closed", I decided to apply for a Secured card. So, I just applied for a secured credit card and opted for a $1,000 deposit from the bank I've been using for over a decade, and they denied me. I'm like, "Seriously? What's up with that?"

[justbroke]

Use a credit union where they don't run your credit. I can tell you that Wells Fargo and some other "large" national banks just don't get what a secured card should provide. I think it's ridiculous that any bank would deny a secured card, but those larger bank do just that thing.

So seek a local small bank or credit union. Ask them first if they run credit. Ask them if the card "graduates" at some point. Move your banking business! (Also, check out Capital One which seems to have a secured card that graduates to unsecured. There are others as well.)

[shipo]

Use a credit union where they don't run your credit. I can tell you that Wells Fargo and some other "large" national banks just don't get what a secured card should provide. I think it's ridiculous that any bank would deny a secured card, but those larger bank do just that thing.

So seek a local small bank or credit union. Ask them first if they run credit. Ask them if the card "graduates" at some point. Move your banking business! (Also, check out Capital One which seems to have a secured card that graduates to unsecured. There are others as well.)

Interesting, my bank, Bank America, very specifically states their Secured Credit Card is for rebuilding credit. My Chapter 13 has been discharged for over three weeks now and I am in an enviable cashflow state with a high income, no car payment (or other credit payments) and a whopping $850 per month rent. I was stunned when I was denied.

[justbroke]

A lot of them "state" that it's for rebuilding, but you practically need to "qualify" for credit in order to get a secured card. I think it's counter intuitive and that's why I highly recommend credit unions.

[shipo]

A lot of them "state" that it's for rebuilding, but you practically need to "qualify" for credit in order to get a secured card. I think it's counter intuitive and that's why I highly recommend credit unions.

Interestingly enough, my credit union does not offer credit cards of any sort. Go figure.

[shipo]

Got the denial letter yesterday...

The first thing which jumped out at me is the opening sentence, "We're sorry we can't approve your request for our BankAmericard Platinum Plus Mastercard."

Uhhh, yeah, about that, I applied for a BankAmericard Secured card.

The next thing which caught my attention is they state, "One or more accounts have been included in a bankruptcy or we've received notification of your intent to file for bankruptcy."

While true, my bankruptcy is discharged, and correctly reflected as such on my credit reports, it has yet to be closed. That said, my understanding was an individual in an active bankruptcy could still apply for a Secured Credit Card. Yeesh; my family and I have been account holders with them since 2012 and run quite a large amount of money through our various checking and savings accounts; apparently not enough for them to value our business.

[justbroke]

Not all creditors allow active bankruptcy applicants to be approved. The major banks, such as Bank of America, would be included among the more sophisticated banks that check bankruptcy status. I applied for a business card through them and they "took into account" my relationship with them, which is none. Oh well.

I would obtain a secured card through Capital One, a small local bank, or a credit union. The larger banks can be tough.

[shipo]

Thanks justbroke, I would really prefer if I can keep my initial card, Secure or otherwise, within the same bank, just makes stuff simpler. I wrote BofA a letter yesterday to challenge their assertions I was applying for a Platinum card instead of the Secure card I actually applied for. If they do not respond in the affirmative, I may inform them my entire family is going to migrate our accounts over to another bank. It probably won't make a hill of beans worth of a difference, but hey, it cost me a stamp.

Long story short, if BofA continues to be obstinate, there are at least two or three other banks more convenient to where we now live which we could transfer our accounts to; so in a way, I'm kind of hoping they say no.

I'll keep y'all posted.