Holy Cow!! 2 Years out and Denied

[sisterfunkhaus]

I have checked my/my husband's credit report each year since the BK and there are no mistakes on the report. I'm not sure about credit scores.

We are two years out on a chapter 7, we have not charged on any credit card in more than 4 years. We have a decent income. We've been renting with a major rental company for three years. We decided it was time to start rebuilding credit with one small card and one single charge per month. We both got turned down for Orchard and Citibank!!! Now our credit score is going to be bombed even more (not that we are planning purchases any time soon.)

I'm not sure what to do from here. We are willing to put up the money for a secured card, but I am afraid now that we will be turned down for one of those too.

I tried to find a company that we didn't BK with and the only one is Bank of America and Wells Fargo (they hold our car loan that we did a ride through on.) So, there really was no one lenient who would give me a card that we did not BK with. We had amazing credit before I got sick and we had to file BK. We had credit cards with everyone, some with unused $20,000 limits. Our credit was stellar!! This sucks so bad.

We just need to begin rebuilding credit in case we ever need a new car. Does anyone know of a secured card that won't turn anyone down???

[outlaw23]

I know usaa has a secure cd loan (2500 min) that anyone could qualify for. If you are not eligible try another credit union to see if they have something similar. In my experience installment loans helps restore credit quicker. Make sure your terms are at least 24 months which is most banks magic number in determining whether to lend you money.

[Amy26]

You can also try joining a credit union and see if they will assist you. Credit unions seem to be quite handy for us post bankruptcy folk. The only time they are evil is when you BK the credit union!

[CCsAreEvil]

Have you read through some of the threads here? BofA and Wells Fargo appear to be "not" BK friendly. In fact, most of the big banks are non-friendly: Chase, etc.

It appears you have better chances at: Orchard, Hooters, and CapitalOne (if you did not BK on them).

[JackBondLove]

What did you expect? You have a Chapter 7 BK on your record. Get the secured credit card, charge something, and then pay it back slowly. Maybe you'll luck out with a regular credit after a while.

I myself don't expect to be able to get *unsecured* credit until the BK is off my credit report!

[HakunaMatata]

Not all companies "blacklist" former customers (especially if your BK debt is associated with a different division -ex/mortgage or revolving credit line) or folks with BKs on their records. Establishing a banking relationship with a credit union may be advantageous as Outlaw and Amy mentioned. It may be worth the money to obtain your actual FICO score so you can better understand your credit standing.

Jack, with a little effort, you'll have unsecured credit in less than a decade! The credit blows of BK don't maintain strength for the entire period it is noted on your credit report.

[Logan]

What did you expect? You have a Chapter 7 BK on your record. Get the secured credit card, charge something, and then pay it back slowly. Maybe you'll luck out with a regular credit after a while.

I myself don't expect to be able to get *unsecured* credit until the BK is off my credit report!

I had three cards one year out of BK and many here have had the same experience so I think it's realistic that someone 2 years out should expect to get some credit.

Logan

[Amy26]

What did you expect? You have a Chapter 7 BK on your record. Get the secured credit card, charge something, and then pay it back slowly. Maybe you'll luck out with a regular credit after a while.

I myself don't expect to be able to get *unsecured* credit until the BK is off my credit report!

Don't say that to people... You don't expect to get an unsecured card for 10 years? I have 3 unsecured cards and 1 of them I got 2 months after my discharge. Which was 1,100 limit and no annual fee.

Mileage may vary for each person, but saying you can't get unsecured credit until BK is off your credit report is NOT accurate.

To the OP, try Hooters card or capital one. I BK'd capital one and they extended me a card. I would also take a very close look at your credit reports and see if there is anything on them that might appear to be adverse. You're 2 years out... you should be totally fine to get something. If you haven't started rebuilding at all in those 2 years, then you might expect some low limit cards but you should be able to get something. If you go after companies like Chase, Amex, Citibank then yes you will probably get denied.

[nomoneynomore]

Jack--that was harsh. By reading this forum, credit after bk seems within reach. I certainly think this story is abnormal. "MOST" people are able to get some sort of credit before being 2 years out.

Sister--In our case, Bank of America wasn't willing to work with us at all. We opened checking accounts with them a year after discharge & we have had a perfect record since discharge. They refused to work with us on a credit card or a small vehicle loan.

Best Buy, Hooters or Premier may be your best bet. If at all possible, steer clear of Premier, their interest rates & fees are pretty bad, but they will help rebuild your credit as a last choice. We used them for a year along w/ Orchard and raised our scores about 150 pts plus the good payment history.

[pris72]

What did you expect? You have a Chapter 7 BK on your record. Get the secured credit card, charge something, and then pay it back slowly. Maybe you'll luck out with a regular credit after a while.

I myself don't expect to be able to get *unsecured* credit until the BK is off my credit report!

My Chapter 7 was only discharged on June 14th, and I have 3 credit cards. They are all unsecured cards. If a person can look into purchasing a home after 2 yrs., they should be able to get a credit card-just saying.

[IBroke]

What did you expect? You have a Chapter 7 BK on your record.

So what?

Millions of people have that and there is an entire industry out there providing them with credit. The % of people with BKs on their files is growing every day - so does the industry for these individuals.

Banks can't afford to leave them out and they don't.

The current economy needs EVERYBODY'S business. Last time I went to Macy's, I thought to myself:

"This is a great place for a bankrobber after comitting the crime. Nobody is going to find him here - the entire store is abandoned."

[JackBondLove]

OK, I take back what I said. All of my creditors told me that once I would have a Chapter 7 on my record, I would not be able to get a credit card until the BK would be off the credit report. I guess they were trying to threaten me with a "worst case scenario." It did make sense to me since past behavior a good indicator for future behavior, and I wouldn't want to lend money to someone who would make a "business decision" to stiff me.

Now, I'm wondering about the terms with the unsecured credit everyone is getting. Is it 35.9% with no grace period and a $150 annual fee? I don't consider Hooters or Best Buy as real credit cards as you can only use them to buy their stuff. FWIW, I got turned down for a Target credit card at 2 months post filing (I only signed up because I would have gotten 15% off that purchase.)

If the terms are normal, I'd like someone to post them here (or at least send them to me in private, so I can get one!)

[Amy26]

Again Jack, you are wrong. The hooters card is a mastercard and you can use it anywhere as it is a REAL credit card. Also the Best Buy Mastercard is also a REAL credit card. There is a Best Buy store card you could get as well but the Mastercard is best.

My interest rates are all in the low to mid teens, all my cards have zero annual fees and my capital one card has a 1,500 limit and my hooters card is 1,100. Best buy usually gives lower limits (but seems to be a bit easier to get). Mine is at 500.

I would be monitoring your credit and making sure everything is reporting correctly and your scores are somewhere in the 600's, then you shouldn't have any trouble getting one of the cards we mentioned.

[pris72]

OK, I take back what I said. All of my creditors told me that once I would have a Chapter 7 on my record, I would not be able to get a credit card until the BK would be off the credit report. I guess they were trying to threaten me with a "worst case scenario." It did make sense to me since past behavior a good indicator for future behavior, and I wouldn't want to lend money to someone who would make a "business decision" to stiff me.

Now, I'm wondering about the terms with the unsecured credit everyone is getting. Is it 35.9% with no grace period and a $150 annual fee? I don't consider Hooters or Best Buy as real credit cards as you can only use them to buy their stuff. FWIW, I got turned down for a Target credit card at 2 months post filing (I only signed up because I would have gotten 15% off that purchase.)

If the terms are normal, I'd like someone to post them here (or at least send them to me in private, so I can get one!)

The hooters card is a mastercard. Best buy also has a mastercard. Most retail establishments these days have either major credit cards, or just store cards. My capital one card which i was approved for 2 days post discharge has 0% interest for a full yr, and 11.9% after that. Far cry from 35.9% that you are talking about.

[nomoneynomore]

Both the Best Buy & the Hooter's are "normal" credit cards, you can use them anywhere mastercard is accepted.

We discharged Sept 08. In July 09 hubby & I each applied for Orchard & Premier cards.
Hubby scores (616,548,611)
His Premier had $150 in fees to start & an interest rate of 21.9%. Yearly fees were $59. It had a credit limit of $300
His Orchard card had $79 in fees to start & an interest rate of 8.9%. It has a monthly fee of $6. It had a limit of $300 that was raised at a year to $500.

My scores (615,617,566)
My Premier had $150 in fees to start & an interest rate of 18.9%. Yearly fees were $30. It had a credit limit of $250.
My Orchard card had $79 in fees to start & an interest rate of 14.9%. It has a yearly fee of $29.50. It had a limit of $300 that was raised at a year to $500.

In July 2010 after using our cards for a year we decided to see if we could get any better offers. We are now 1yr 10mo out of CH7. Our credit has improved quite a bit, and our scores have gone up an average of 50pts.

We both closed the Premier cards as I wasn't interested in paying the yearly fee if they werent't willing to raise our limits or lower the interest (In Feb both jumped to 22% when the CC laws changed) We hadn't ever been late, always paid in full etc, so I wasn't happy at all.

We both applied for the Best Buy Mastercard. He was approved for $500 w/ 18.9% interest & no fees. I was approved for $4000 (WOW) w/ 14.9% & no fees.

Hubby also got a Hooter's card. It is $500 limit w/ 14.9% & no fees.

We put about $20 each month on each Orchard card, the Hooter's & his Best Buy card just to show they are being used. They are paid off the week before the statement prints.

We have all our bills set to auto pay from my Best Buy card & use it for all groceries & purchases. We pay it off in full twice a month. We do this to earn the points. This month I was able to purchase a much needed vaccuum w/ warrenty for free. My next goal is a good camera.

"Now, I'm wondering about the terms with the unsecured credit everyone is getting. Is it 35.9% with no grace period and a $150 annual fee? I don't consider Hooters or Best Buy as real credit cards as you can only use them to buy their stuff. FWIW, I got turned down for a Target credit card at 2 months post filing (I only signed up because I would have gotten 15% off that purchase.)

If the terms are normal, I'd like someone to post them here (or at least send them to me in private, so I can get one!)"