Recommended Credit Cards

[deemac76]

Hey Sota, I also got approved from Cap1 (found out today) for $500. This is my 2nd card (BBRZ $300) thanks to the forum and I was just discharged 8 weeks ago. Cap1 took forever cause a had a previous fraud alert on my EQ file and I didnt know with that being on there can hurt my chances of instant approvals. But Im done with applying w 2 cards and 4 installments ( 2 s. loans, car loan and badcock) all showing on time thats all I need. It can be done if your reports are cleaned up properly. BTW I bk cap1 $3500.

[Laurie77]

Hello everyone! This is a great thread, so thank you to the one who started it. My question is this: we should wait until after we're discharged before attempting to get any other card, is that correct? I am definitely not interested in racking up anymore debt, my motivation is to rebuild my husband's credit. I have school loans that obviously won't be discharged in our bk, so that will help me. But everything he has is included in the bk, so I want him to get a secured card or something that he can use to rebuild his credit.

I am very encouraged after reading a few of these threads. There IS life after bk. I've been so worried that we'll never get anything again and we'll never be able to buy a home. I'm glad to see that that is not the case. Thanks everyone!

[BankruptinNJ]

You should definitely wait until after you're discharged. You'll get much better deals on cards if you wait awhile. Otherwise you'll be stuck with cards with high annual fees and ridiculous interest rates.

[DesiPula]

It looks like Firestone Complete Auto Care (CFNA) is not a BK friendly. I got turn down by them. But got CAP 1 ($500 limit with 24.99 APR)

[RichM]

It looks like Firestone Complete Auto Care (CFNA) is not a BK friendly. I got turn down by them. But got CAP 1 ($500 limit with 24.99 APR)

I've been informed that I got one, too, though I don't recall having applied for it. I did apply for a car loan, which I then declined because I didn't like the rate. Maybe there was fine print in that application that also applied me for the credit card?

Frankly, I was going to cancel the Cap1 card (the Shylock down the street offers a much better interest rate), but I think I'll put my recurring monthly bills (phone, etc.) on it and pay it off every month. I get much better rates from my secured cards, so if I'm actually going to spread out my payments on some major purchase or other, it's certainly not going be at 24.99 percent.

By the way -- Addison Avenue Credit Union, which offers a very nice secured card (and is a top-notch credit union with truly outstanding member service and many perks) can now accept anyone as a member. They just sign you up for the Financial Fitness Association, which qualifies you for CU membership.

-Rich

[hillaryg]

I got my 1st cc 3 months ago (discharged aug 2010) from capital one (thanks to you all here) to rebuild personal debt and now i need to rebuild my business debt.... for our personal stuff we have our car loan we didn't include and pay cash for everything... so the business i don't have any way to rebuild... i just applied for a business cap one and was denied... any other business ones to suggest? i dont want to go apply for a bunch after getting denied with one...

[Amy26]

FYI: I just received a 500.00 limit card from Alliant Credit Union. They are BK friendly (friendlier to people 3 years post BK) and give regular limit increases every 6 months. Everyone can join this CU if donate 10 dollars to the Orphen Foundation of America.

[dneil]

I just received my Capital One card today. I was shocked when I seen that they gave me a $2,000.00 credit limit. Who would'a thought? I was just discharged on Jan 4, 2011. Anyway, I wonder how long I should wait to get a 2nd? 9 months maybe??? Or should I go for a personal installment loan? Someone told me to build credit you need more than one credit card.... that really sucks if this is true because I really only want/need one. But, if it takes more than one to rebuild, then that is what I will do.

[IBroke]

OK, just finished the "re-launch" of my credit:

- Got a secured Cap One card with a $200 limit (but I only had to deposit $49) (had charge-off/IIB with them in the past).
- Got an unsecured Orchard card, $300 limit (had charge-off/IIB with them as well)
- Got an unsecured Credit One card, $500 limit (no account with them before)

I also applied for a secured BoA-card but based on information out there, it's unlikely they are going to give me one. But the other three are sufficient if they deny.

The end of the month, I'm going to obtain a secured installment-loan at my local CU. After that, My new "seeding" is done and I will focus on removing derog. accounts.

[SonnyBoy]

My story - Credit building, unsecured cards, and other BS!

I am really pleased to find this forum. It's somewhat reassuring to know that I'm not alone in my situation, but at the same time, it's sad to know that all of you are going through all the BS that I've had to. Nobody should.

I did notice a couple of things that stood out, so let me jump right on those first before I tell you my work so far.

First, that Firestone Card: FORGET IT. What a POS. CFNA are the WORST! I had one back in '94 in college, was late once, and it screwed me over for a while. Plus they sent me bogus bills, etc. Trust me, I'd rather have a Visa with $500 on it than that store card.

But, speaking of which, here's the other one I noticed. There are a lot of you going for the secured low-line cards at banks. Like $300 deposits for a $500 limit card. Don't even waste your time. Why? I've done it, with Bank of America. EVEN WORSE and here's why. The long and short of it is this. There's no magic bullet, but you must be willing to invest a little time (and a few dollars) into it to get the results back.

OK, back to Bank of America, where I held all my accounts. Theycharged me $300 for a $500 secured card back in '06. I got my deposit back in '08 and to this day, they will not raise the limit. I even called them a few days ago along with two other store cards. Get this. The other two cards looked at my credit and tripled my lines for me over the phone. BOA? NADA. They've never raised it. But they're looking at the same facts. Hello!

Best things I have ever done so far are: 1) open up a second set of accounts six months ago at a local credit union and got a $5000 credit card unsecured, just like that. That helped. 2) I went out and found an online store called Enchanted Attire, where I was able to take out a $5000 credit line, do some shopping every so often and pay it right back off. It costs a little, but it ran me less than that BOA card and I am getting 10 times as much credit.

Using both during this period of time, I have brought my score back up from a 620 to a 696 and plan to keep doing what I'm doing until I get past 750. I read about how you need to keep extending new positive lines of credit, keep them in regular use but under 25% of your availability charged at any one time. Keep the payments on time and create positive accounts that way. All in all, I'm up mainly because I got that $5000 line from EA. Google it and check it out. It's taken some time, but I'm getting it done myself. Plus I call all lines every 6 months to push for limit increases.

Forget Firestone, forget little $500 secured cards. Create larger positive lines to outgun negative ones.

[IBroke]

Hi SonnyBoy,

Just wanted to let you know that:

1.) You can increase your credit-line on secured cards up to $3,000, $5,000 and sometimes even $10,000.
2.) The Fico-Score is determined by the % of credit used on this cards, NOT by the credit-line itself. If you use 5% of credit on a CC with a $200 CL or $20,000 CL doesn't make a difference.
3.) "Keep on extending new lines of credit" is going to LOWER your score because it reduces your AAoA (Average Age of Accounts). After a BK, the best way to rebuild credit is to get some new tradelines and keep them open - but you don't want to add new accounts on a regular basis.
4.) A "larger" positive line won't "outgun" a negative one. It's the age of the older, negative tradeline that's going to do the trick. As I said, the credit-line doesn't affect your credit-score.
5.) Be careful with the "storecards": They often report to only one bureau - if at all. And if somebody looks at your report when applying for credit, these cards don't have the same reputation as regular CCs (MC, Visa etc.).

[IBroke]

OK, back to Bank of America, where I held all my accounts. Theycharged me $300 for a $500 secured card back in '06. I got my deposit back in '08 and to this day, they will not raise the limit. I even called them a few days ago along with two other store cards. Get this. The other two cards looked at my credit and tripled my lines for me over the phone. BOA? NADA. They've never raised it. But they're looking at the same facts. Hello!

BOA doesn't need clients like us (bkforum). They also denied my application for a 100% secured card. I find that quite funny since they want to sell this card as a way to "build" or "rebuild" credit. The reason for the deny was my BK - so there goes the "rebuilding"-theory. And no, I didn't BK them...

[CeRee]

Don't fall for that Enchanted Attire thing without first checking it completely!

[msm859]

BOA doesn't need clients like us (bkforum). They also denied my application for a 100% secured card. I find that quite funny since they want to sell this card as a way to "build" or "rebuild" credit. The reason for the deny was my BK - so there goes the "rebuilding"-theory. And no, I didn't BK them...

Interesting though despite filing chapter 7 - listing them (BofA) - I am still on their marketing list trying to get me to apply for more credit -- not yet discharged.

[IBroke]

Using both during this period of time, I have brought my score back up from a 620 to a 696 and plan to keep doing what I'm doing until I get past 750. I read about how you need to keep extending new positive lines of credit, keep them in regular use but under 25% of your availability charged at any one time. Keep the payments on time and create positive accounts that way. All in all, I'm up mainly because I got that $5000 line from EA. Google it and check it out. It's taken some time, but I'm getting it done myself. Plus I call all lines every 6 months to push for limit increases.

SPAM-WARNING!

This user is marketing this store-card on other forums as well. To all members on bkforum.com:

Just as expected - The praised storecard doesn't even report to the CRAs - so that didn't increase the score.

SonnyBoy (or should I call you "TaylorM" from Colorado?): We might be broke but not necesserily dumb!