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Member
Posts: 7
Registered: ‎04-28-2013
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Re: Bankruptcy friendly credit cards

Jakookie,

 

I'm no expert but, this is what I did to go from BK discharge and zero credit to now having credit cards with $25,000 limits within 18 months.

 

You can use all your cards but, even though it is difficult with low limits try to keep your balances under 10% and pay them off completely when you get your statement.  If you use more than 10% of your credit limit, pay it down/off before your billing cycle closing date this way a higher balance won't be reported.  This essentially does a few things for you:  #1 it shows you aren't living off your credit #2 you won't pay any interest charges and most important #3 you're keeping your debt-to-credit ratio low.  Your debt-to-credit ratio is a pretty high factor in calculating your credit score.  First each account is factored individually then they are summed up and looked at altogether.

 

I don't see this mentioned much but, payment amounts are actually reported. I am not sure if this is factored in to FICO scores but, I do know this does work to your benefit when you pay balances in full each month when requesting CLIs.

 

Of course.. this advice is on top of the usual don't apply for a ton of cards, pay on time, diversify your credit account types (credit cards, auto loan, personal loans, lines of credit, whatever you can), let your accounts season minimum 6+ months before thinking about applying for new credit (remember lenders need to see that you can handle the new credit line), etc. 

Community Leader
Valued Contributor
Posts: 2,748
Registered: ‎07-12-2012
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Re: Bankruptcy friendly credit cards

When I initially obtained my Cap One card it had a $500 limit and was enrolled in the "credit steps program" It stated that on my 7th (can't remember exactly) statement I would receive a $250 CLI. I logged in today to see if the CLI had been applied to my card yet and to my complete surprise my limit is now showing $2,000!!!!! Not sure why it was done or how but I am going to count my blessings and accept it :smileyhappy: Happy re-building all

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
721 EQ FICO 06/2015
720 TU FICO 06/2015
727 EX FICO 06/2015
$14k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $9k Barclay Arrival WEMC | $5.4k Cap1 Quicksilver | $6k Amazon Store | $11k Cap1 VentureOne | $5k Barclay US Airways | $500 Chase Freedom
Member
Posts: 7
Registered: ‎11-29-2012
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Re: Bankruptcy friendly credit cards

I wasnt set up to get an email when someone replied and I forgot where I posted this question! Sorry for the late response. His credit score is 650 because he had a repo on a Cap One car loan. He let his brother "take over the payments!' and that never happened, the brother wrecked the car, never told us, never paid! AGH I know it was against my better judgement but I couldn't convince him otherwise at the time. That may be the reason why. 

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Posts: 2,435
Registered: ‎11-29-2012
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Re: Bankruptcy friendly credit cards


Scupra wrote:

When I initially obtained my Cap One card it had a $500 limit and was enrolled in the "credit steps program" It stated that on my 7th (can't remember exactly) statement I would receive a $250 CLI. I logged in today to see if the CLI had been applied to my card yet and to my complete surprise my limit is now showing $2,000!!!!! Not sure why it was done or how but I am going to count my blessings and accept it :smileyhappy: Happy re-building all


That's awesome, scupra!

Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 1/22/15 TU 645; EQ 605; EX 633 New goal 675
Cap1 sec $1k (SD) / Fingerhut $2k / Flagship $12k / cashRewards $12k / NavChek $15k / Amazon $2k / Von Maur $1k / Firestone $2.2k / BCU $3k / NFL $1k / QS1 $750 / Target $400 / PPSC $800 / Conoco $700 (last app 09/29/14)
Established Member
Posts: 50
Registered: ‎11-06-2012
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Re: Bankruptcy friendly credit cards

Good Scupra!  I think they are revamping their processes and realizing they will lose customers after the rebuilding is done if they didn't change

Filed BK 7: 2/28/2012 | Discharged: 7/24/2012
POST BK APPROVALS:
NFCU nRewards Secured Visa: $1000 7/12| Apple FCU Secured Visa: $1000 9/12
Toyota Finance Lease: 0% | 0.0008 MF 10/12
Barclay Apple Finance Visa: $2200 1/13
NFCU cashRewards Visa: $2500 3/13

Community Leader
Valued Contributor
Posts: 2,748
Registered: ‎07-12-2012
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Re: Bankruptcy friendly credit cards

Thanks guys! 3x CLI is ok with me anytime they want to try out new tactics! haha

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
721 EQ FICO 06/2015
720 TU FICO 06/2015
727 EX FICO 06/2015
$14k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $9k Barclay Arrival WEMC | $5.4k Cap1 Quicksilver | $6k Amazon Store | $11k Cap1 VentureOne | $5k Barclay US Airways | $500 Chase Freedom
Established Member
Posts: 16
Registered: ‎05-14-2012
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Re: Bankruptcy friendly credit cards

SO helpful to have all of you great people here helping each other. I myself got into pretty deep debt due to medical bills and went chapter 7. I burned allot of CC capitol 1 and HSBC CC and store cards. I was finally discharged, I reaffirmed my house since I have good equity in it and now looking to start rebuilding. Does anyone have any clues on what card I should apply for first or start with? i see Orchard was bought by HSBC now and was skeptical of going there. My discharge has been anout a month and a half now. I make good money but would like to rebuild credit so any advice would be greatly appreciated.

BK Discharge 03/14

Starting Score: 508
Current Score: 622
Goal Score: 720


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Current List. Capital One QS $1500, Capital Once QS $750, CreditOne $500, First Premeire $300, Amazon Store Card $600, Kohls Store Card $300.
Regular Contributor
Posts: 236
Registered: ‎09-04-2012
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Re: Bankruptcy friendly credit cards

Since you burned Capital 1, you want to go the credit union route. You may get lucky since you reaffirmed your mortgage and get an unsecured CC. If not I'm sure you can get a CU-backed CC. After 6 months of great payment history, try for an unsecured card.
Established Member
Posts: 16
Registered: ‎05-14-2012
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Re: Bankruptcy friendly credit cards

Thanks for the heads up. I will try the CU way first. Just dont want to drop a bunch of apps out there if they are not going to get approved. Also some things are sill on my credit report so I know I need to wait for them to update correct?

 

BK Discharge 03/14

Starting Score: 508
Current Score: 622
Goal Score: 720


Take the myFICO Fitness Challenge

Current List. Capital One QS $1500, Capital Once QS $750, CreditOne $500, First Premeire $300, Amazon Store Card $600, Kohls Store Card $300.
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Valued Contributor
Posts: 2,748
Registered: ‎07-12-2012
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Re: Bankruptcy friendly credit cards

A card that everyone knows is BK friendly, Express, but I wanted to be excited...

 

I just got my first pre approval in probably 5 years! Express sent me a letter with an id # to enter on their site. I know it's nothing special, but it does feel good. Happy rebuilding :smileyhappy: 

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
721 EQ FICO 06/2015
720 TU FICO 06/2015
727 EX FICO 06/2015
$14k NFCU Platinum | $25k NFCU cashRewards Sig | $15k NavChek | $9k Barclay Arrival WEMC | $5.4k Cap1 Quicksilver | $6k Amazon Store | $11k Cap1 VentureOne | $5k Barclay US Airways | $500 Chase Freedom
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