Capital One offer prior to discharge

[gina2000]

I've received two "pre-qualified, no annual fee, lowest intro rate" offers from Capital One in the past month. My 341 meeting was August 15, so the discharge should occur October 15. I'm curious as to why Capital One would be sending me offers at this time and wondering if it's advantageous to apply now or to wait - it seems like my credit score should go up after the discharge. Thanks in advance for any comments!

[stevie2012]

I got the Cap 1 secured card and it's funny because it specifically states the BK must be discharged on my terms page. It sounds like your offer is a non secured.

[btbeme]

Reconsider getting ANY credit card post-discharge. Credit score? Nope. It's a debt score - it measures how well you navigate through debt, which is money you have spent but do not necessarily have in-pocket to repay at that moment. A few months ago you were asking how to deal with credit card companies harassing you. Why the rush to get a line of credit from one of these bloodsuckers?

Maybe get a secured card with a $2-3000 credit line. Yes, that makes it necessary for you to deposit $2-3000 with them to get the card. After a couple years of responsible use of that credit, consider an unsecured card - if you determine that you REALLY need one.

Just a thought.

[TXskyblue]

There's no law that says you can't get a CC today, but I would wait until day 61 to accept that cap one offer. That's if it's zero AF. If it's an AF offer, toss it. It's garbage IMHO.

[AngelinaCatHub]

Reconsider getting ANY credit card post-discharge. Credit score? Nope. It's a debt score - it measures how well you navigate through debt, which is money you have spent but do not necessarily have in-pocket to repay at that moment. A few months ago you were asking how to deal with credit card companies harassing you. Why the rush to get a line of credit from one of these bloodsuckers?

Maybe get a secured card with a $2-3000 credit line. Yes, that makes it necessary for you to deposit $2-3000 with them to get the card. After a couple years of responsible use of that credit, consider an unsecured card - if you determine that you REALLY need one.

Just a thought.

Best explanation of Credit Score I've heard. Credit is the grease that lubricates the slide into poverty. 'Hub

[AngelinaCat]

I just got a Cap1 CC offer in the mail today! At my physical address, which is NOT where we get our mail, and with a version of my name that I DON'T use. Rather than tearing it up like I usually do, I might just read through it and see what they have to say for themselves.

Oh, and this offer is only good up until October 23.

[bcohen]

I know, isn't it amazing that even after discharging over $40,000 in credit card debt, and even a civil judgment from Discover Card, Capital One still wants my business? Surely there must be some "catch", because starting on the day I received my discharge papers in the mail, I have received no fewer than 5 separate mailings from Cap One! The offers are all for a so-called "platinum" Visa or MasterCard with a limit of "$300 to $1000" and no annual fee.

I don't need a credit card at this time, but it still amazes me that they are even sending these offers! I remember reading about all the horrible credit card offers post-BK, which supposedly included high application fees, account setup fees, monthly membership fees, and so on. The offers from Cap One don't seem that bad, unless there is some "catch" which I haven't noticed.

[IBroke]

Reconsider getting ANY credit card post-discharge. Credit score? Nope. It's a debt score...

True - but unless you're planning on dumping your auto-insurance as well, the score matters. Our economical system is based on (credit) scores - even if you don't want any credit.

But as you suggested - a secured CC is a great alternative to "please" the system..

[IBroke]

I've received two "pre-qualified, no annual fee, lowest intro rate" offers from Capital One in the past month. My 341 meeting was August 15, so the discharge should occur October 15. I'm curious as to why Capital One would be sending me offers at this time and wondering if it's advantageous to apply now or to wait - it seems like my credit score should go up after the discharge. Thanks in advance for any comments!

You can go for it if you like - there's no need to wait after discharge. BTW, the discharge itself has no impact on your credit-score. In regards to your credit-history and scoring, there is only pre- and post-filing.

[jst4f]

The credit card companies know that you were able to discharge all debt, unless you have student loans or reaffirmed a debt. So they know you should be able to pay off a modest debt of $300 to $1000. They know you have to live and like it or not credit is part of life in the US, not to say some do without it, but most use it in one form or another. The credit card companies also know that you can't file BK for eight years. All this adds up to a low credit risk. If they are the first ones in the door and you rebuild with your fresh start, they hope you will look favorably toward them and do more business. After all they helped you when you were down.

Proceed with caution... Read the proposal carefully.... Ask yourself whether you need the credit card or just want it.

[btbeme]

True - but unless you're planning on dumping your auto-insurance as well, the score matters. Our economical system is based on (credit) scores - even if you don't want any credit.

This isn't entirely true, at least not in the sense that most folks believe.

Insurance companies (the reputable ones, anyway) will often use a credit HISTORY report to help determine your insurability and their risk exposure. While they utilize your credit report as a vehicle to determine that credit history, it is true that they can see your credit score. However, it isn't the score - but the history - that they use. And since you cannot change the history, it is unlikely that "improving" your credit SCORE will be a large factor in your insurability.

Insurance companies measure risk. Risk factors include how over leveraged you might be financially, and therefore a bigger risk of insurance fraud. Irresponsible behavior behind the wheel of a car often parallels irresponsible financial behavior. Large secured debts on vehicles and homes can be traced to fraud, especially if a credit history shows a number or late of missed payments, etc. And so on. These things that show up in your credit history paint a picture of past behavior. The only thing that dims those past behaviors is time spent without those behaviors. And, like time spent without a speeding ticket or an accident or other insurance claims, your risk factor goes down and so should your premiums.

Improving your credit score requires - REQUIRES - that you burden yourself with debt. Outside factors such as how long you go with "good behavior" will contribute, but the truth is that you will not have a credit score eventually if you do not have any debt. That is the proof for any non-believer that a "credit" score is actually a debt score.

And, quite frankly, you can usually save a lot more on auto and other insurances by raising your deductible - thereby lowering the risk to the insurance company that you would file a claim. Since you are now debt-free, live within your means, and strictly follow a budget that includes a savings plan for exactly that type of expected or unexpected event, you can afford the higher deductible.

Food for thought.

[btbeme]

I just got a Cap1 CC offer in the mail today! At my physical address, which is NOT where we get our mail, and with a version of my name that I DON'T use. Rather than tearing it up like I usually do, I might just read through it and see what they have to say for themselves.

Oh, and this offer is only good up until October 23.

Your physical address which is not an address of record for anything except...your BK filing? Credit card companies and auto finance companies trolling the BK records to find customers they can hook on their debt drug as soon as that customer is walking out of rehab?

Say it isn't so!

[df04527]

The credit card companies know that you were able to discharge all debt, unless you have student loans or reaffirmed a debt. So they know you should be able to pay off a modest debt of $300 to $1000. They know you have to live and like it or not credit is part of life in the US, not to say some do without it, but most use it in one form or another. The credit card companies also know that you can't file BK for eight years. All this adds up to a low credit risk. If they are the first ones in the door and you rebuild with your fresh start, they hope you will look favorably toward them and do more business. After all they helped you when you were down.

Proceed with caution... Read the proposal carefully.... Ask yourself whether you need the credit card or just want it.

RIGHT ON! That IS the game.

[AngelinaCat]

The physical address is also in public record because of a land sale to the state of Florida in 2001, and I think is in our Trust paperwork as well as the BK. I wouldn't be surprised at your analogy of drug dealers hanging outside of rehab places in order to nab people on their way home...