Next step after CapOne and HSBC Orchard/BB

[CCsAreEvil]

So, I'm around the 1 year mark for post-BK and discharge, continuing to re-build and such. We "post-BK folk" obviously have limited options in re-building credit.

CapOne never approved me (tried 4 times throughout the year), but I did BK on them. There are instances of people getting approved by them even when they included CapOne in their BK, but I think that must be the exception to the rule.

Fortunately, Orchard approved me ($300 teaser limit). However, the annual is coming up, and for my account, they charge $59 (*shudder*). Even though one of the positives is they report to all 3 CRAs, paying that $59 the 2nd time around doesn't seem too appealing. Has anyone been able to reduce or remove the annual fee?

I'm going to assume that Orchard will not remove/lower the annual fee... so now I'm looking at what my options are for the "next step" in re-building. Are there any national CC lenders besides the initial HSBC (Orchard/BestBuy) or CapOne to switch to next?

Since I have some money saved in the bank, I suppose another option would be to obtain a secured CC line of $1k or $2.. but of course, as long as there are no fees attached. As usual, could care less what the interest rate is.

Thoughts?

[tobee43]

CC...yes, we tried but did get both ....cap one did give us one

cap one gave us 2000 interest free for 10 months then a whopping 22% thereafter
orchard one of us no fee 1500 at 12.99%
my orchard was 1300 but i had to pay $39 and it's at 12%


our plan, if they didn't give us the cards was to go to the credit union and see if they would give us a "secured" card. that was why we opened two bank accounts pre bk...one at a small community bank and one at a local credit union.

it's worth a shot to see if your bank would work with you on a secured card...after all they have nothing to lose and as long as they report to the ca's you should be good!

[Amy26]

As far as I know, I haven't seen anybody getting any other cards aside from the hooters one ( at least that I've read here in the threads). I think it is possible to get a Barclay's card ... the last time I applied for one I called the reconsideration line and they told me to keep rebuilding my credit with my existing lines and try again another time. She said they wanted to see some mileage between my discharge and my rebuilding habits. At the one year mark, most of my credit scores are either in the 700's or closing in on it... so, hopefully you should be somewhere in that neighborhood. I think within another 6-12 months I should be able to can the orchard card and get something a little less.... undesirable. Right now I have the capital one card, HSBC Best Buy MC and Hooters. The hooters and the capital one cards are quite fine for me and I'm happy with them. I wouldn't mind just using those for quite some time. Capital One is doing regular increases and Hooters just raised my limit after a year. Its the HSBC card that I don't particularly care for. Its only a 500 limit and mine has a 39 dollar fee on it. They also told me they do not do limit increases (at least not by request). So, if you don't have a hooters card perhaps you can try that. But otherwise... we just have to wait.

[nc73]

Well I first got a 500 limit the day after discharge but now I got a second one for 2k limit and it's only been 2 months!
I figured that would happen. My scores are under 700. Hooters in a few months.

[tobee43]

Well I first got a 500 limit the day after discharge but now I got a second one for 2k limit and it's only been 2 months!
I figured that would happen. My scores are under 700. Hooters in a few months.

i thought hooters is a restaurant??? they are a bank as well??

the first time i saw the name was on this forum....but i guess for some that may be the only card they can get??? what type of fees and interest does it have?

[CCsAreEvil]

i thought hooters is a restaurant??? they are a bank as well??

You can't be serious? Well, just in case others may question, just like there's no "BestBuy" Bank :P They use VISA/MC issued by a "real" bank lender. In this case, Hooters uses Merrick Bank. Look at the Hooters Mastercard login URL.

Annual fee ranges from free (rare?) to I think around $79. I think it's either $19, $39, $59.. (goes by $20s).

And most of us rebuildin' folk usually don't care about interest rates because we don't carry balances.. Amirite?

[nc73]

shoot i forgot they had an annual fee. might just keep my two cap one's.

[tobee43]

You can't be serious? Well, just in case others may question, just like there's no "BestBuy" Bank :P They use VISA/MC issued by a "real" bank lender. In this case, Hooters uses Merrick Bank. Look at the Hooters Mastercard login URL.

Annual fee ranges from free (rare?) to I think around $79. I think it's either $19, $39, $59.. (goes by $20s).

And most of us rebuildin' folk usually don't care about interest rates because we don't carry balances.. Amirite?

CC!! i was serious!! i never even heard of a hooster's card until this site!! i guess i'm just way out of it.

we got the capitol one with no annual fee....but the orchard banks one had no fee and the other...me, had the $39.

you got that right about the interest rate..you know, i was told to use the card for the holidays so it looks like we are buying and paying it off and it's NOT good to pay the full amount off so you can build up a "history"....i'm finding i'm FREAKING OUT about this...we have the money and i just want to see zero balances!! so it's taking all my strength to stay off the site to make the payment!!!

[nc73]

I haven't kept a balance. It is usually paid off before the bill. It must be working since cap one gave me another card with a 2k limit.

[CCsAreEvil]

...and it's NOT good to pay the full amount off so you can build up a "history"....i'm finding i'm FREAKING OUT about this...we have the money and i just want to see zero balances!!

I'm pretty sure I've stated this before, but 99% of the time, there's no good reason to leave any balance at all. Always pay off your balance. The only time you want want to leave a balance (1%-10% utilization against total credit limit) is when you are about to make a big purchase and need credit for (ex: auto or house). Leaving some balance (< 10% usage) will slightly bump up your FICO score. This maximizes getting the best interest rate for a potential loan. You can google around if you need more information on this.

[tobee43]

I'm pretty sure I've stated this before, but 99% of the time, there's no good reason to leave any balance at all. Always pay off your balance. The only time you want want to leave a balance (1%-10% utilization against total credit limit) is when you are about to make a big purchase and need credit for (ex: auto or house). Leaving some balance (< 10% usage) will slightly bump up your FICO score. This maximizes getting the best interest rate for a potential loan. You can google around if you need more information on this.

i heard it is better IF they see you making monthly payments......but i'm with YOU on this one...

our fico scores immediately following our discharge were 690 and 685....because we never were late with cc's...and filed bk before they could report "late" payments...i think that helped with our scores....

actually...we have been recalibrating and re-calculating our numbers..... and if we do this right.....i think we should be able to buy this house cash instead of even taking out a mortgage...in a few years...we have an option to buy it after 5 years so we will be doing it.

so the only thing that would be left to need any amount of credit for, is, if, our old car gave out...we are hoping we have a bit of time for it...(5 years PLEASE)...although it's already 10 years old it only has about 65k miles on it...so we are trying to keep it up.

[Amy26]

shoot i forgot they had an annual fee. might just keep my two cap one's.

I do not have an annual fee on my hooters card.

[nc73]

I do not have an annual fee on my hooters card.

Good to know thanks! I will apply in a few months. 2500 total credit line is sufficient for me, for now!

[frogger]

I have found that my debit card works very well, doesn't have any fees for me to pay, and.... I'm making interest on the money in my account. It's nice to pay cash and not owe any bills at the end of the month.

Just my 2 cents worth.

[nc73]

I have found that my debit card works very well, doesn't have any fees for me to pay, and.... I'm making interest on the money in my account. It's nice to pay cash and not owe any bills at the end of the month.

Just my 2 cents worth.

Yeah but with cash back cards you could earn more than a savings account. That isn't my motivation though. I'm just rebuilding my credit so I can buy a house later. No other reason. I pay off the balance before the bill comes.