Secured Credit Card after Discharge

[shipo]

Hello to the collective here; given the slow-down in court activity, my attorney informed me it could be a few more months before my Chapter 13 case is fully closed. I was granted the discharge on 04-Mar-2020 and an eager to start rebuilding my credit. Over the last couple of weeks I've applied for a Secured Credit Card from both my current bank, Bank of America, as well as Capital One; both denied me due to my bankruptcy using language like, "One or more of your accounts has been included in a bankruptcy or we've received notification of your intent to file for bankruptcy."

My question is, is there a hard and fast rule in the credit industry which says even so much as a Secured Card cannot be issued until the official closure of a bankruptcy case?

[sophieanne]

Hi shipo - Unfortuntely due to the virus...I don't think anything is cast in stone right now. I'm not even sure if rules that were in place are now even valid.

[shipo]

Geez, this is really annoying; I've been in credit prison since the summer of 2013 and have finally been let out, but unbeknownst to me, I am now on parole and ain't nobody wants to take a chance on me, even though I am more than able to put up a sizable security deposit against a Secured card.

[sophieanne]

shipo - I understand...everything is a mess right now.

[Carmella]

Yep shipo everything is on hold. Even though it's frustrating in the greater scheme of things I think it will all work out in the end. I totally understand how much it stinks I would be beside myself after 5 yrs.

[Leemo1980]

shipo there certainly doesn't seem to be any real clear path to regaining credit. My discharge was in July of 2019 and my case still isn't closed (let that sink in). I got tired of waiting and figured I would apply. Capital One approved me for an unsecured no annual fee credit card with my credit score hovering around 700. It could be I am almost a year from discharge so they assumed the case has to be closed. I don't really know, but like you had become sick and tired of waiting.

[shipo]

Leemo1980, thanks, I'm in the same boat, only several months behind you. My credit rating is hovering within six points either side of 700. I'll try again with a different institution in a month or so.

[shipo]

Well whaddya know? On the strength of Leemo1980's experience, I tried Capital One again; today they approved me! I should have a card in my hot little hands in two to three weeks.

[sophieanne]

YAy!!!! Secured or not???

[shipo]

Secured, the same thing I was denied for several weeks ago. I figure, hey, I'd rather tie up $1,000 for a few months than pay some of the exorbitant annual and/or monthly fees I've seen in the various "unsecured" credit card offers I've started getting recently.

[sophieanne]

That’s great!! you wait, not to long down the road Capital 1 will offer you an unsecured, high limit card with a good starter rate (if you want it, of course) I am glad things are progressing for you 😀

[shipo]

This question is for Leemo1980, or anybody else who's opened a Capital One Secured Card...

To the Moderators; not sure if this question should be a separate thread, or if it is pertinent enough for this thread. If you wish to move it, or wish for me to create a new thread, I'd be happy to do so. Now, on with my post...

Background:

Yesterday afternoon when I was approved I opted to fund the account with a security deposit and they asked for my checking account's bank routing information, which I promptly entered. I figured during their daily overnight demand deposit processing they would pull the money from my Bank of America checking account; they did not.

Question:

How long after you opted to fund your Secured Card, did Capital One actually pull the funds?

[shipo]

A quick update, Capital One pulled the funds last night, so the answer to my question is "Second night".

[sophieanne]

You’re set...time to rebuild 😀

[shipo]

That’s great!! you wait, not to long down the road Capital 1 will offer you an unsecured, high limit card with a good starter rate (if you want it, of course) I am glad things are progressing for you 😀

Hey sophieanne, you are quite the prognosticator, CapOne offered and subsequently approved me for an unsecured card with a $3,000 limit today; whaddya know.

A little background; the Secured Card I was approved for back on 22-Apr-2020 ended up being a bit of a bust due to the low limit. My typical monthly expenditures range between $1,500 and $3,000; as mentioned in a different thread, the $1,000 limit on the CapOne Secured Card was so low I started making weekly payments to keep my available balance open enough to continue using the card on a regular basis. Unfortunately it seems more than one payment per month triggers some sort of AML (Anti-Money-Laundering) protocol which in turn means they hold your payments for upwards of 12 days before the funds are released to your account. I ended up paying off and closing the card less than two months after opening it.

Circling back to sophieanne's prognostication, I figured after opening and then quickly closing my original CapOne card, they'd blackball me for future cards. Well, apparently not.