Household Bank card denied

[Hoss454]

Just tried to apply for a Household Bank card and was shot down.
I filed BK November 2009 had 341 meeting on January 16th 2010 discharged and closed in March 2010. So don't know what to do, kinda disappointed. What about taking a small "$300" loan out from a bank?
Thanks everyone

[justbroke]

Wait a few more months. Also, check your credit score before applying. You may actually have derogatory information on your report that is being incorrectly reported. I am still cleaning up my report(s).

On a vehicle that was included int he discharge, the lender is still reporting it late as of May 2010! I received my discharge in May 2010! There was no other history except for March, April and May 2010... and all those months, my Chapter 7 discharge was pending! I hate having to clean up my report, but it needs to be done because there are things on there that are flat out wrong.

[Hoss454]

O ya my credit scores are...Trans Union 674, Experian 590, and Equifax 656. Does that sound ok? I have no bills any more except a cell phone so dont know what to do.
Thanks Again

[justbroke]

O ya my credit scores are...Trans Union 674, Experian 590, and Equifax 656. Does that sound ok?

If those are real FICO score, your middle score is 656 and that's not too bad (average). However, you may have BK'd that particular lender on a prior account and that's why you were denied. If those are FAKO -- fake -- FICO score, then your scores are probably lower. The fact that you were denied by Household Bank makes me think that maybe you had in fact discharged some prior debt that you held with them.

Did you clean up your credit report? Have you tried applying at your own bank?

[Hoss454]

I didnt do anything to my credit report, I just checked my scores June 2010. I received my credit report from freescore.com, is there a better way to get my credit scores? I have no idea what a FICO score is. Also I never had a Household Bank card, I had Chase, Capitol One and Bank of America card. Should I apply for a wal-mart card or any other cards should I a apply for? Thanks again justbroke

[justbroke]

If you really need to try... I applied at Hooter's Credit Card and received a card with a $1,000 limit. My scores are a little worse than yours.

[Hoss454]

Thanks, I dont really need one I just would like to start rebuilding my credit, and also just in case I need it. All I really need to start with is like $200.
Thanks again Justbroke

[justbroke]

Thanks, I dont really need one I just would like to start rebuilding my credit, and also just in case I need it. All I really need to start with is like $200.

Those $200 and $300 cards are both good and detrimental to your credit score. Good, as you build up your history, but they'll also ding you for having really low credit limits. I know, a double-edged sword!

You could always try a secured card from your own bank.

[jlmaca]

Those $200 and $300 cards are both good and detrimental to your credit score. Good, as you build up your history, but they'll also ding you for having really low credit limits. I know, a double-edged sword!

You could always try a secured card from your own bank.

Which is it good for building credit or a bunch of dings? Is there anyway to tell other than following your credit score? I just got my first credit card $300 from Reward Zone. Should I get a few more to bump my available credit or will I just get penalized more by having too many cards with low credit limits. This just sounds too difficult to process.

[justbroke]

If you are really chasing your score, rather than rebuilding credit, then you really need to be careful of having too many accounts. There are many factors that go into the credit scoring models. One of those factors is the number of revolving credit lines (VISA, M/C, Amex) that you have. Others include the credit limits on those accounts.

Actually, one of the most significant affects on your credit score, after payments history and longevity, is your balance! You can have just one single $300 credit card on your report, have over a $280 balance, and your score will suffer tremendously. Both for being over 90% and for having low credit limits.

I think it's okay to have one $300 card to help rebuild. I would not rebuild on a bunch of $300 cards though. This is just my opinion.

[jlmaca]

If you are really chasing your score, rather than rebuilding credit, then you really need to be careful of having too many accounts. There are many factors that go into the credit scoring models. One of those factors is the number of revolving credit lines (VISA, M/C, Amex) that you have. Others include the credit limits on those accounts.

Actually, one of the most significant affects on your credit score, after payments history and longevity, is your balance! You can have just one single $300 credit card on your report, have over a $280 balance, and your score will suffer tremendously. Both for being over 90% and for having low credit limits.

I think it's okay to have one $300 car to help rebuild. I would not rebuild on a bunch of $300 cards though. This is just my opinion.

That does makes sense... My goal is simply improve my credit score, not accumulate cards. So I will use the card every month and also pay off the balance every month. By bringing the balance to "0" every month, does this hurt the score or should I leave a small balance?

[justbroke]

I think a balance below 10% of the credit line, should be fine. That means.... less than $30 on a $300 card.

[backtoschool]

I agree with everything that justbroke said, but I would also like to add that having the bankruptcy show in the public records section of your credit report pretty much negates the positive impact of having high fico scores. Most people will not be able to get high credit limits from prime banks (chase, citibank amex, etc) for several years minimum after discharge. Many will not be able to get prime cards until the bk is not showing on the report any more, and if you ever included citibank or amex in your bk, then you probably will not get a card from them again.

Rebuilding credit is good for getting mortgages and car loans, but do not expect easy access to prime credit for many years.

[amalejko]

I am 11 months after discharge. The first thing I did was open a secured card with Amalgamated. I spent a lot of time researching credit cards and this is the best one being fresh out of bankruptcy. They do not report it as a secured card and they charge low fees. I then opened up a DRIP with Exxon Mobil (Direct Reimbursement Plan). Google for EXXON DRIP. You can start it for $50 and put funds in monthly in any amount you can afford; once you hit about $500, you will get a gas credit card in the mail.

I then waited until a few months ago and applied for a capital one credit card and received a $750 unsecured limit. I bought a membership for my credit report and will keep it until our two year mark as we want to buy a house and have worked on watch it weekly and getting the bankruptcy updated correctly, getting our cars that we did not bankrupt has been a challenge but I just called the bank and got them to fax me a letter that I had paid them in full and am sending it certified mail (important) to all three bureaus; It is hard work but our scores have risen by 100 points since I started.

I also received a $500 with best buy mastercard (easy one). We were told to get 2-3 lines of credit, don't charge more than 50% of the credit in any single month, DON'T pay it off each month; leave a small balance as it will help show that you are responsible and most importantly, start saving. Too many people get out of bankruptcy and don't save and that shows that you are truly not looking for a fresh start.

Also, the public record does not mean you will not get good rates. You have to work at building your credit and if you do, and save, two years into this, you will get good rates again. BK is no longer a 10 year sentence!

[backtoschool]

I am 11 months after discharge. The first thing I did was open a secured card with Amalgamated. I spent a lot of time researching credit cards and this is the best one being fresh out of bankruptcy. They do not report it as a secured card and they charge low fees. I then opened up a DRIP with Exxon Mobil (Direct Reimbursement Plan). Google for EXXON DRIP. You can start it for $50 and put funds in monthly in any amount you can afford; once you hit about $500, you will get a gas credit card in the mail.

I then waited until a few months ago and applied for a capital one credit card and received a $750 unsecured limit. I bought a membership for my credit report and will keep it until our two year mark as we want to buy a house and have worked on watch it weekly and getting the bankruptcy updated correctly, getting our cars that we did not bankrupt has been a challenge but I just called the bank and got them to fax me a letter that I had paid them in full and am sending it certified mail (important) to all three bureaus; It is hard work but our scores have risen by 100 points since I started.

I also received a $500 with best buy mastercard (easy one). We were told to get 2-3 lines of credit, don't charge more than 50% of the credit in any single month, DON'T pay it off each month; leave a small balance as it will help show that you are responsible and most importantly, start saving. Too many people get out of bankruptcy and don't save and that shows that you are truly not looking for a fresh start.

Also, the public record does not mean you will not get good rates. You have to work at building your credit and if you do, and save, two years into this, you will get good rates again. BK is no longer a 10 year sentence!

I agree that you can get good rates on secured debt such as mortgages and car loans a couple of years after bankruptcy.