Capital One question

[jjj117]

I am discharged from a 100% Chapter 13. I applied for a Capital One card and was denied. I received the info on my denial in the mail today. They stated that the reason I was denied was that there was a bankruptcy or bankruptcy filing on the credit report. It also said that if I could provide them with any more info to change their minds to do so. As I stated I paid back 100%, every payment on time. Every other payment I have had in the last 5 1/2 years has been on time. I assume that they see only bankruptcy and discharge when they look at my credit. Should I send them a letter explaining thia to try to get a decent card or would I be wasting my time? Anyone tried this?

[aces67]

IDK. Dh and I both applied. We filed our BK jointly. Dh got approved. I got denied b/c of the BK.

I don't think the BK is really why they denied me it's just what they said.

[pookieny]

I was approved by Cap One a few weeks after BK and I included 3 cards I had with them in my BK. Also was approved by Hooter's Mastercard.

[killinstinct]

Why the *ell are you trying to get a credit card immediately after BK!!!!?????

With all due respect.....?

[cupcake]

Why the *ell are you trying to get a credit card immediately after BK!!!!?????

With all due respect.....?

Some people need them for business travel or other business-related expenses. Some want to buy a house someday and want to start rebuilding as soon as possible. I think there are some good reasons out there for wanting CCs. However, I also think there are just as many bad reasons and excuses, as well. Unfortunately, I think that there are some who don't learn from their BKs and jump right back into hellish CC cycle.

Also, we, as consumers, have been brainwashed and live as slaves to our FICO scores. We were made to believe that a high FICO = a good and responsible person. And, likewise, a low FICO = a bad and irresponsible person. Most of the US population bought into it and there is a huge amount of shame and embarrassment associated with a low FICO that one imposes on themselves, despite the fact that nobody else knows your score (except your creditors and spouse).

[jjj117]

My reason is that I want to buy a house. Specifically I want to buy the house that I am living in right now. It's the house that I grew up in. My father passed away 2 years ago and my mother moved out. My sister, who has power of attorney over my mother, was to fix the house up and put it up for sale immediately. She never did. I got my payments to my 13 stopped in June and my attorney promised me a discharge within 10 weeks. I talked my sister into an article of agreement on this house and I began fixing it up and moved in. Part of the agreement was that I had 2 years to get a mortgage or I forfeit everything I have paid(it goes as rent) and I am back to renting and the house goes up for sale. The 10 weeks for the discharge turned into 6 months. I now have 1 1/2 years to get a mortgage. I got a great family discount on a buying price for a great house with a nice piece of property. I am 40 and have only my income. In other words this is probably my only chance in life to be able to afford a nice house. When I do apply for the mortgage a year and a half from now I obviously want the best possible credit. That's why the 'ell I want a card now. I did get approved for a Premier bank card with a $300 limit and annual fees. Not much, but a start. If anyone else has any suggestions to my predicament feel free to speak up.

[jjj117]

Also--my 3 scores are currently all around 650. There is a car loan that lists the account as being closed and no payments at all made on my reports. That was a car loan I got during my 13 and there was an address snafu with the court for them sending the payments. My loan is now current and actually paid in advance. The car loan company assured me that a "fix" has been put in and will be reported to the credit bureaus on Jan 15. They had wound up receiving every payment on time but initially reported a bad loan to the credit bureus due to the snafu. They told me that it would be fixed and like I said that should show up after Jan 15. I assume that would raise my scores?

[CCsAreEvil]

Why the *ell are you trying to get a credit card immediately after BK!!!!?????

With all due respect.....?

In addition to what cupcake stated, the main (probably sole) reason why you'd do this is to obtain a high FICO score again. And the only reason to have a high FICO score is for obtaining the "best possible" interest rate on loans. Of course, since most of us browsing here are post-BK, this should only mean for a possible future home. I won't delve into auto loans.. most of us probably shouldn't be buying "new" (or used) cars via a loan. Saving up for one and paying cash = the best choice IMO. Our family needs another car, but we are trying our best to save and pay cash for a used "decent" one.

Also, don't forget about home/auto/etc insurance! A lot of insurance companies factor in your credit score into your premiums. I hate this practice, but do we have a choice? We want to pay the lowest premiums possible.

Sadly, the "system" relies heavily on the FICO score.. but what are we gonna do? Tell them to screw themselves? We could.. but we'd have to be strictly on a cash system for "everything". That might work for some people. But the problem is, most of us can't buy a home outright. Of course, the other possible solution is to rent for the rest of your life. Again, I guess it just depends.

Trust me. I'm mentally fighting myself over getting another card. I will most likely just do a secure card for now. As good financial sound people do, make maybe < $50 - $100 in charges a month and pay the balance off. If you find yourself starting to leave "a small balance" on your card one month, you are already going into the wrong direction. This should be your first sign.

[Mi Bankruptcy]

MY bk closed this and I applied for a Cap One Credit card and got accepted. I have to periodically travel for work and when I present my ATM they have put a hold on funds in my account. I also decided to get a credit card to help establish credit so I can buy a new home. Fortunately, I have never been late on my current home or missed a payment so I hope they take that into consideration when I go to buy my next home

[killinstinct]

I understand the considerations given. I have mixed feelings about it myself. So far we've travelled just fine on debit, but I haven't tried to rent a car.

No increase on insurance, no problem switching cell phone service so far...a couple of potential roadblocks I was concerned about. I, for one, got burned badly enough by the real estate implosion that I don't see myself trying to buy a house anytime soon.

It's a strange feeling, the credit is like crack, I'm nervous not having it. I try to just think about how horrible and trapped I once felt when buried in debt. That typically makes me feel better. Haven't applied for a card or auto loan, don't think I will anytime soon...