Denied for a Capital One Secured and a Citibank unsecured card - now what?

[apathetic]

As the title states. I was discharged a little over a month ago, and was even denied for a secured card. Should I just wait longer or try Orchard Bank? Any insight/experiences would be helpful.

[lblanchette]

Have you checked your credit reports and make sure that they are clean?

You may want to try Barclays.

[justbroke]

I would try a local credit union or your local bank.

[apathetic]

Have you checked your credit reports and make sure that they are clean?

You may want to try Barclays.

Yes, all 3 credit reports all report "IIB Chapter 7, or Discharged in Chapter 7 bankruptcy" with a 0 balance. If I got denied for a secured, do I really have a shot at the barclay's unsecured?

[justbroke]

Yes, all 3 credit reports all report "IIB Chapter 7, or Discharged in Chapter 7 bankruptcy" with a 0 balance. If I got denied for a secured, do I really have a shot at the barclay's unsecured?

Yes. How creditors "score" a credit report, and how they accept risk -- or don't accept risk, is all dependent on the creditor itself! Again, I'd go to my bank -- where I bank today -- and ask to sit down with a representative (just as if you're opening a new account). Then ask if they have a secured credit card available. If not, try opening an account in a credit union. Credit unions tend to grant secured cards much more easily than larger banks.

[Flamingo]

Not everyone is able to get credit cards right after discharge of a Chapter 7 or 13. There are many factors - for instance, do you have any issues showing on your credit reports PRIOR to your filing? Former accounts that had late or non-payments in the past? Repos, etc.? Credit reports can list these items for at least seven years so that, on top of a recent BK filing, will send creditors running. A lot will dependon your income, job and other factors. Orchard Bank is very BK friendly but you need to be careful so soon after discharge applying for all this credit as that will work against you - creditors are seeing you fresh out of BK applying for several cards and it doesn't look good. I would thoroughly clean up your credit reports as much as possible, wait several months and try for an Orchard Bank card. Remember, and I always state, this, nothing happens overnight after a BK discharge and what happens with others after a discharge may not happen with you. Best of luck to you...

[apathetic]

Not everyone is able to get credit cards right after discharge of a Chapter 7 or 13. There are many factors - for instance, do you have any issues showing on your credit reports PRIOR to your filing? Former accounts that had late or non-payments in the past? Repos, etc.? Credit reports can list these items for at least seven years so that, on top of a recent BK filing, will send creditors running. A lot will dependon your income, job and other factors. Orchard Bank is very BK friendly but you need to be careful so soon after discharge applying for all this credit as that will work against you - creditors are seeing you fresh out of BK applying for several cards and it doesn't look good. I would thoroughly clean up your credit reports as much as possible, wait several months and try for an Orchard Bank card. Remember, and I always state, this, nothing happens overnight after a BK discharge and what happens with others after a discharge may not happen with you. Best of luck to you...

Thanks for the advice, Flamingo. The majority of my unsecured accounts were 90 days+ late when I filed. My car payments/student loans were fine and up to date. No repos or anything like that. I just applied for the Orchard bank card and I'm hoping for the best. If not, I will wait a few months before trying again.

As an aside, if the card's history shows on the credit report as being "Charge off" in the history, but the current account status is "discharged in bankruptcy", should I dispute the charge off appearing on the history?

Thanks everyone for the replies.

[mountanddo]

Isn't the act of applying for credit a month after discharge one of the reasons why they might deny you? If I was looking at credit I might see that as a red flag applying so soon after getting everything discharged. I know lots of people apply right after because they want to start rebuilding but really what is the effect of waiting 6-12 months after a discharge? Is it really any better to start that soon after?

[JackBondLove]

I waited 6 months post-discharge and got the CapitalOne rewards card ($39/yr.) Now that I am 18 months post-discharge I got accepted for Barclays (free), Discover (free), Firestone & Speedway - but declined for everyone else!

You just need to lay low and use a debit card for now.

[SemiSpook]

Well, been trying to get back w/ Capital One (they had given me a $500 unsecured CC just before I filed, was more for emergencies and eventual rebuilding). They closed the account when my BK filing hit (since discharged), and I finally settled the account (had a balance that was on the card before I filed that was too new for the 70 day test to include, even though Cap One reported it as IIB). Problem is, before I paid up, any app was denied b/c of said balance, but I just recently got my latest denial back saying, "App Pending". I'm confused. I even sent back my old card to them with said balance payment (as a show of good faith), maybe that's why they think I'm applying? Seems weird to me.

I've tried to go the CU route, but with no success. Seems I'm still a bit of a risk to them, which is irritating, but I can understand that. It's not like they don't know where my money's at!

[LadyInTheRed]

SemiSpook, did Capital One object to the discharge of that debt?

[SemiSpook]

No, because it was never included. Capital One closed the account the Monday following my filing. They told me that my repayment was voluntary, and I did have every intent of paying back the amount owed, which I did. The rep even said reapply after the case closed because I had intended on repaying and reopening my account.

[IBroke]

As an aside, if the card's history shows on the credit report as being "Charge off" in the history, but the current account status is "discharged in bankruptcy", should I dispute the charge off appearing on the history?

If it was a charge-off prior to filing, they are reporting accurately.

[LadyInTheRed]

No, because it was never included. Capital One closed the account the Monday following my filing. They told me that my repayment was voluntary, and I did have every intent of paying back the amount owed, which I did. The rep even said reapply after the case closed because I had intended on repaying and reopening my account.

Well, it's to late for you now. But, for the benefit of others who read this thread and may not know any better, you do not get to pick and choose what debts get included in your bankruptcy. It's up to the creditor to object to the discharge of the debt if it fits under the 70 day rule you mention. It doesn't get excluded automatically That debt should have been listed on your petition. Are you certain it wasn't? If your attorney knew about it, I bet it was. It looks like your case a was a no asset case. So, my understanding is that the the debt was discharged even if it wasn't listed on your petition. All debts are discharged unless the discharge order specifically excludes them from discharge.

CapitalOne reported the debt as IIB and told you payment was voluntary because they knew the debt was discharged.

[Amy26]

Isn't the act of applying for credit a month after discharge one of the reasons why they might deny you? If I was looking at credit I might see that as a red flag applying so soon after getting everything discharged. I know lots of people apply right after because they want to start rebuilding but really what is the effect of waiting 6-12 months after a discharge? Is it really any better to start that soon after?

I started a month after BK getting new credit and I never had any problems. Its as Flamingo said, it totally depends on your income, your prior history, what the report looks like now and if the lender is in a good mood that day. 1 month after discharge I got a hooters MC ....alas they are not taking new card holders now.