Denied - Capital One SECURED Card

[Kuya]

Geeeeez Louise !!! This really sucks.

My BK13 is complete but not discharged . . . (Trustee is doing final report this week . . blah blah). I applied for a SECURED credit card from Cap1, and it was denied. Holy Guacamole lol.

I have an orcahrd, and hsb discover card, jcp card, and even a chase card . . . my current Fico score is 672.

I feel like the only person on the planet that could get denied for a secured card lol.

[df04527]

Can't help but wonder if they may think 4 open cards after a BK is too risky? Just wondering - but understand the secured part - makes no sense.

[tobee43]

maybe cap one thought 4 cards was enough like df04527 points out? i know it's a debit card, but the banks are getting odd about things nowadays!

[HHM]

With those other cards, why are you even trying for another. Especially a rinky-dink, sub prime secured card.

You only need 3 CC's to rebuild credit, and you have that.

[Kuya]

Because I will need to purchase a card soon. I certainly don't need or want a secured card with 22% interest and a $29 fee. BUT, it seems to be a pattern with Capital One . . .that they approve Auto Loans to those who have a cap1 card . . even when their credit is horrible. Therefore, I just was looking to build a relationship with Cap 1 prior to applying for an auto loan.

With those other cards, why are you even trying for another. Especially a rinky-dink, sub prime secured card.

You only need 3 CC's to rebuild credit, and you have that.

[Goteki45]

exactly. three cards being paid on every month is more then enough to provide the positive marks on a credit report then just one.

[Peeps]

That makes sense to me, as far as wanting to position yourself for a better chance at a car loan later down the line. People on the forum have reported good experiences with Cap 1's auto loans. Maybe C1 thinks you have too many lines of credit. But I suppose if you close one of those other cards it will ding your credit score. Catch-22. But I wouldn't worry too much because Capital One is a 'ho. Give them some time and they'll be happy to take your money. You might eventually be able to get the auto loan without having their secured card.

Who knows... by the time you need that auto loan, maybe you'll have other options. Like a loan against a secured deposit at a local credit union (or something along those lines). Just sayin' that you'll probably be able to pick and choose by then, thanks to your efforts to build your credit score now. Don't worry about C1 turning you down. Someday you'll laugh about it and maybe even be grateful that they said no.

[Flamingo]

Geeeeez Louise !!! This really sucks.

My BK13 is complete but not discharged . . . (Trustee is doing final report this week . . blah blah). I applied for a SECURED credit card from Cap1, and it was denied. Holy Guacamole lol.

I have an orcahrd, and hsb discover card, jcp card, and even a chase card . . . my current Fico score is 672.

I feel like the only person on the planet that could get denied for a secured card lol.

The reason you are being denied is because you have a Chapter 13 on your credit report along with showing four active cards while still in a Chapter 13. You are a credit risk still and will be until the BK is off your credit reports seven years after your filing date. Slow down with applying for credit - hard inquiries on your credit reports stay on for two years and having a BK on one's credit reports along with numerous hard credit inquiries just adds up to more denials. Doesn't matter what your credit score is when creditors see that.

[tobee43]

flamingo makes an excellent point.

we have 2 ....and frankly, no longer even use them. to me, personally, it's TIME between your filing and discharge that is what is most important here, however, we were in a chapter 7. one would think in the case of a 13, it would be HOPED that it would be the way your payments were rec'd from you to the trustee that may later on help you regain your credit status.

best of luck to you!

[BenzUp]

Kuya - Me too - same denial for a secured Capital One card shortly following my Ch 13 confirmation. I turned to First Premiere Bank and was approved for UNsecured $500 the same day. They report to all 3 credit bureaus. But the card is expensive (about what AMEX Gold fee was).

[Kuya]

Kuya - Me too - same denial for a secured Capital One card shortly following my Ch 13 confirmation. I turned to First Premiere Bank and was approved for UNsecured $500 the same day. They report to all 3 credit bureaus. But the card is expensive (about what AMEX Gold fee was).

Thanks for the info BenzUp . . . but unfortunately the only card I am interested in, at the moment, is the Cap 1. Reason is that I want to apply to Cap1 for an auto loan soon. Seems to be a pattern that they do not approve people that have no prior Cap1 credit history . . . prime example:

I applied several months ago . . . . they denied for following reasons:
1. Bankruptcy still open
2. No prior Cap1 history.

Very interesting . . number 2.

So, anyway, as others have pointed out - I have enough cards .. . just have an interest in the Cap1 card because of the Auto Loan issue. I have not had a car for 3 months . . have to buy soon.

[Argh!]

I was denied myself. No Cap1 history, Discharged in 09. The only thing I can think of is my house was finally foreclosed on last month.

[SPalin]

Why a Cap1 auto loan? If you have a CU account or open one they will be more flexible and have a lower interest rate than on an auto loan than Cap1!

[Kuya]

Why a Cap1 auto loan? If you have a CU account or open one they will be more flexible and have a lower interest rate than on an auto loan than Cap1!

Spalin . . . .

Why Cap1? Because many others with similar credit scores as mine, and similar situations have gotten as low as 5.9% right out of Chapter 13 with Capital1. I do have a Fico score of 675 . . . so I believe that I may have a decent shot with cap1. They appear to be very BK friendly.

As for my Credit Union, and other resources . . My credit union has informed me that my credit score qualifies me for 4.5% with them . . BUT they have a BK policy that I must have 12 months good credit history . . from date of discharge. So, they told me to hang in there with a higher rate for 12 months and then come back and refinance.

Before buying a car, I will certainly shop around at many banks to see how I fair . . and then I will simply take the lowest rate and go to the dealer and see if they can beat that rate (often times they will, because they get kick backs and profit when you take dealer financing).

Cap1 just seems like a good possibility from what others have posted in the past.

[Flamingo]

Thanks for the info BenzUp . . . but unfortunately the only card I am interested in, at the moment, is the Cap 1. Reason is that I want to apply to Cap1 for an auto loan soon. Seems to be a pattern that they do not approve people that have no prior Cap1 credit history . . . prime example:

I applied several months ago . . . . they denied for following reasons:
1. Bankruptcy still open
2. No prior Cap1 history.

Very interesting . . number 2.

So, anyway, as others have pointed out - I have enough cards .. . just have an interest in the Cap1 card because of the Auto Loan issue. I have not had a car for 3 months . . have to buy soon.

While I understand your reasoning, please note you will not be able to pick and choose what credit you may or may not be granted in the years following BK. The #1 should be of no surprise to you because, as I indicated further above, you will have a BK showing on your credit reports for 10 years from your date of filing and as soon as some creditors see that, you will be denied no matter what your score or credit status.