Credit card offer from discharged creditor

[boomer2298]

Ok, I have been following this forum for awhile as I prepare myself for my own BK. A colleague, who has since filed BK 7, and was discharged in September, has received a credit card offer from Capitol One. What is unique is that the offer states they know she has been discharged and congratulates her on her fresh start. Further, the interest rate is a low introductory rate and then converts to 18%. She is a single mother with moderate income. Even more so she discharged $6K from them. This is now the second time I have heard this, getting a offer from a discharged creditor asking them to come back. Thoughts ?

[brokejoker]

I have one sitting on the counter from capone. Pretty much the same letter. Congrats on your fresh start, here's a card. No annual fee, 14% interest and up to a $3,000 limit. Their lawsuit against us was for $16,000. I guess they like to forgive and forget.

[Floridagail]

I was discharged 8600 ( including attorneys in judgement) 5-2009, By Sept they started sending me offers. I guess they know you cannot file again for awhile.

[scorpion35]

cap1 is BK friendly

[tcreegan]

Hi boomer, Hi brokejoker,

...not forgive and forget, its profit and loss.

Folks coming out of a BK are going to want a small credit line to rebuild, they just unloaded a ton of debt, can't file BK for years, and history has a way of repeating itself.

....no annual fee card at 14%, ...down from annual fee and interest up to 24% offers...competetion must be heating up, good news!

Watch for other fees, banks and cc companies have realized this is a lucrative market and have been trying to squeeze them in somewhere. For a large national company, fees bring in 2 digit billions annually. New laws cutting debit/overdraft fees will cut billions out so they will look for other places for fees.

And of course be careful about 'introductory' rates and fees, a legal version of the ol' bait and switch. (around here the true masters of this are cable/direct/dish TV providers)

Well, enough rambling on....

Tom in Colo

[Flamingo]

Once you are discharged your name will go everywhere on the bad credit and/or BK mailing lists since (1) it is public information and (2) your BK will appear in your credit reports to which all sorts of creditors have access. They are gleaned for certain population segments and if you filed BK, you will get put on their mailing lists. We are over 4 years past a Chapter 13 discharge and STILL get BK junk mail and it has been off our credit reports for over 1 1/2 years. That's the extent of the mailing lists out there...I don't think BK ever really goes away.

The reason you received the offer is because you are debt free and a source of money; plus you cannot file BK again for 8 years. And as the other poster stated, history usually repeats itself and as well indicated in this forum, people just can't wait to get those credit cards again!

[boomer2298]

Flamingo,

As i have not decided 13 or 7 yet due to a open ended divorce settlement, when did you start getting offers after filing 13. Debating the merits of a 13 over a 7 if I want to keep the house for more than a few years (custody issue).

[AngelinaCatHub]

Warning: Only my opinion

Anyone in their new start who goes for a credit card right away has to be nutz. What got you to do bk? EASY CREDIT. Fall back into your Masters lap? Then you truly wish to be a slave to others. I refuse to use credit and I have lost more than most here on this board. We have come down to living on our SS after attempting to waste our retirements to come out of this. Stupid move. Bottom line is we have learned, and are happier than ever in our lives. We have NO BILLs (other than utilities) and ow no person or organization. What price Freedom, Folks?

Get over this credit thing and worry less about some sort of ratting. We were 820, beat that one and then go 7. 'Hub

[boomer2298]

Ang,

I agree I am just amazed that they would even consider extending credit after they just got burned. What a world

[2manybills]

Sure they do. What some folks don't seem to realize that when they charge off your credit card after adding all of those crazy fees, they actually make money on the charge off! Go figure, they always win!!

We got a $1K credit line from them that we use for gas. We charge, I pay it, just like a debit card. But we've had a lot trouble out here with debit cards at gas stations. But to have a $50K line of credit again from Citibank - NO THANK YOU! I'm with Hub -- CASH IS KING!

[wnguyen]

So far I didn't get any credit offer from any credit card company except Orchard and a whole bunch of car dealerships. I still have one credit card that survived this bk with a limit of $250. Wonder when they're gonna close it down.

[JackBondLove]

Regarding these cards, I was wondering what would be the best move for me to repair my credit score. Sure, I can use the card just like a debit card and pay it off every month, or I can go purchase something for a few hundred dollars and just pay it off on time (which would cost some interest.) Would doing the latter result in me getting a higher credit score down the road?

[gmk]

That's a good question JackBondLove. I'd love to the know the answer. I obtained a Cap1 card to start and with the hopes of building up the credit line (I hear the shrieks and screams).

I do contract engineering, usually for very large companies and travel is part of the deal. The company employees that I typically travel with, have an in-house travel agency, corporate cards, etc. I do not get the benefit of that corporate largess, so I tote the note until expenses are paid. If the corporate guys change plans and travel details then I may be stuck with change fees, or on occasion, non-refunds. The company is fine with relatively quick reimbursement, including the throw away tickets, but over the past few months I've been juggling a few thou. That I can do but that leaves me vulnerable to be able to do any last minute quick trips. Long range planning for trips to get decent airfares, etc. can tie up my cash for even longer.

Actually I only use the Cap1 card once or twice a month for minor stuff or at restaurants in foreign countres where I don't want my bank debit/credit card exposed; the anti-fraud measures in a CC are not a bad thing to have in my business. The balance is paid in full each month.

I totally agree that "cash is king" and that's how we manage our personal lives.

[Jovigirl22]

Does anyone here have experience with a Kolhs store card? I loved this card for the "deals".......use your card and get 30% off and other similar incentives. I had this card since I was 19 or so, and never had a balance on it until last Christmas. Usually, I made a purchase, got the discount, then paid the balance at the register before leaving the store, but last year I thought I would wait until the tax refund and pay it off ($400.00). We thought around tax refund time that BK was iminent, I found out that paying them $400 would be considered a preferential payment, so I could not pay it off. If I chose to reaffirm this card, do you think they will cancel me anyways? I KNOW so many of you think I am crazy for wanting the card, but honestly, at back to school time when I have $200 in clothes and get a $60.00 discount, thats a huge savings on items I have to buy anyways. If I DONT reaffirm, do you think they will EVER give me another card?

[Flamingo]

Flamingo,

As i have not decided 13 or 7 yet due to a open ended divorce settlement, when did you start getting offers after filing 13. Debating the merits of a 13 over a 7 if I want to keep the house for more than a few years (custody issue).

Please tell me you are not basing your filing on when you can get another credit card after filing!!!!

We started receiving offers within the year after we filed; it was a while ago so I don't remember the exact time; I remember reviewing the offers, laughing and shredding them....Aspire Bank was the main one at that time with huge monthly fees, huge annual fee and a credit limit of $300. With all the fees, there was really no credit available. They work on people wanting to have that credit card in their pocket and hope they don't read all the fine print. You will get offers as your name will get out there after you file and it doesn't matter WHAT chapter you file. And just wait until you are discharged - you will receive all sorts of "small print" offers from every car dealership in your area offering their "BK special" to you (just read that fine print...). We even received travel brochures from area travel agencies which goes to show you the extent of how your personal information gets around when you file...