Credit Card-Should we apply now?

[concerned]

We are most likely going to foreclose on our home. The bankruptcy was discharged as of 11 days ago, but it is still pending closing. Should I try to get an Aspire credit card to start rebuilding credit now before the foreclosure? Will the foreclosure make my credit score worse and harder to get a credit card, or will it simply be included in the BK? I only want to get a card to help raise my score.

Thanks,

Concerned

[StaciMM]

Say no to Aspire! Go with Orchard... You could probably get an unsecured card, and even if you can't, you can get a secured card. The Aspire fees are ~$250 for the first year, while Orchard is $35-79 per year.

I opened Orchard ($300 limit, unsecured, $59 annual fee) & Crown Jewelers before discharge. After discharge, got a $200 limit Target card and yesterday was approved for $2000 0% for 1 year, no fee Providian. (I'm still in shock on that one...) I'm not doing any shopping binges, just rebuilding credit...

[Anassa613]

I was offered a card from Orchard (secured) but i still haven't had any other offers come to the house strange. Aspires fees are ridiculous. Stacy how long ago were you dischraged?

[StaciMM]

Discharged in December. I've gotten First Premier/Aspire type offers (big annual fee, big account opening fee, and $5-7 monthly maintenance fee) and a 'preapproved' Household offer-which I was turned down for because I already had Orchard. (Orchard is from Household.) I did get a First Natl. Bank of Marin offer also, I think in Dec but didn't go for it as I was pretty sure it would be another low limit, nothing different from what I already had. For the next credit card, I figured it better to wait til I could get something better.

I'm done now by the way! I have 2 store cards, and 2 regular cards. I figure that is plenty to re-establish. I'm glad I got a decent limit on Providian (heck, better than decent!) as I *think* it looks better to have something w/ a higher limit reporting.

[down&out]

I say no way. Just wait it out and after about 6 months of good history with cleaned up reports Cap One will give you an unsecured with no annual fee

[concerned]

Thanks for the tips. It sounds like Orchard might be the way to go for now. One concern I have is that I read a past post about credit card companys trying to roll over past discharged debt from your bankruptcy into your new card. With companies today, it's so difficult to tell who is owned by who. Is anyone else concerned that there past debt might appear on their new card?

I definitely want to reestablish credit soon. I think my car will hold off for another couple years, but I will definitely need to buy a new one after that. I understand that buying a new car after bankruptcy is nearly impossible. In two years or so would I be approved for a new car purchase?

Thanks everyone!

Concerned

[concerned]

Staci--one other quick question.

Should we also get a store credit card? Does it make a difference with helping your credit? I didn't realize it would help to have both.

[StaciMM]

About the clause for past balances, I'd be more concerned with advertisements that come by mail and reading every word. If you apply online, you should be able to read the agreement first (and I've never seen that). It may be urban legend, it may be true, but regardless its good to read all terms anyhow.

I've heard plenty of things about credit scoring, don't know if its true, but one thing I've read is having a mix of accounts is best. Some store, some visa/mastercard, some installment. One thing I am confident of is that having several accounts will do more to build credit history than just one.

[FilingOnMyOwn]

Say no to Aspire! Go with Orchard... You could probably get an unsecured card, and even if you can't, you can get a secured card. The Aspire fees are ~$250 for the first year, while Orchard is $35-79 per year.

I opened Orchard ($300 limit, unsecured, $59 annual fee) & Crown Jewelers before discharge. After discharge, got a $200 limit Target card and yesterday was approved for $2000 0% for 1 year, no fee Providian. (I'm still in shock on that one...) I'm not doing any shopping binges, just rebuilding credit...

I 2nd, 3rd, 4th that and then some. Aspire & First premier were byfar the 2 biggest ripoffs I received out of all the credit card offers. Its like if you were in jail, and Bubba walks up to you and politely asks 'May I bend you over, no lube?' And would you say yes? I most certainly hope not. I have hsbc & orchard for my first new cards, and after these 2 will not be accepting any more that have ANY fees.

[edwards2]

Staci - I checked on the Household Bank 2 card question...posted from another question...and was told if your credit was good enough they would issue 2 cards. I told them then they need to change the wording on their website because it specifically says you cannot have more than one card with them. Didnt the person who said he got both cards file BK? His score must be pretty good. Also, I had a Providian card that I paid on time for 10 years...NEVER late. When we had to file BK they literally went after us with a vengeance so whatever you do NEVER be late with them. Also, they sold our account right before filing so they will not (and they dont have to apparently) change our credit report from saying 30 days late...TEN years and never late!

Concerned - of course the foreclosure is going to hurt your score like the BK as hurt yours and the rest of us but it will take time...and be patient...not like me...and work on rebuilding your credit. I would think Orchard would approve you. My husband and I both have Orchard cards and Target red cards and I have a Cap One card and we are financing my son's truck through Ford Motor Credit. I talked to a lender the other day and he was surprised Ford approved us. I had heard they were Bk-friendly and they are and in fact they told us they were lowering our interest rate from the original quote. I have also heard you need to have a mix of credit...cars, mortgage, credit cards.....and monitor your credit report. It has been exhausting for me. I just checked it in September and then again this past week and some issues that were supposed to be resolved are removed from Experian and Equifax but not Trans Union...

[StaciMM]

It is possible to have a 'decent' score after BK. Dh's is in the high 600's! He has very little on there from the past, though. He is showing the BK (of course) and a 6 year old judgement, and a 5 year old CO credit card. After the BK, his mom added him to one of her accounts-I think that is the main boost to his score. He also has a vehicle loan from US Bank (722 redemption), and has added Crown Jewelers, Orchard, and a Capital One. In less than 2 years, the only negative he'll have will be the BK itself.

Thanks for the tip on Providian. I don't plan to use it, other than to show some activity. The accounts I've opened have been solely for building credit, to be able to buy our house later this year!

[newstart]

Just curious Edward2, you didn't include your house in the bk?

[concerned]

I printed up the credit report, but is there anyway around paying the fee to get the score?

Also, does anyone know the web site to apply for an Orchard card?

[StaciMM]

For Orchard, try www.orchardbank.com.

There is no free FICO score. BUT-if you buy from MyFico.com there are discount codes. I think CPPSAVINGS is for 20% off, and if that doesn't work, then try UnionPlus for 15% off.

You don't really need to buy scores all that often. Perhaps in the beginning to know where you're starting at, and then when you're getting ready for something major like a home/car purchase.

[concerned]

One problem with Orchard Bank. We had money discharged to HSBC in our BK. It was a small amount--only $500--but will this be a problem with our application?