Reply
Regular Contributor
Posts: 190
Registered: ‎01-15-2009
0

Secured Cards

My 13, if lucky, will discharge within the next 50 days or so..... (i'm not counting  :smileyvery-happy:  )  can i start applying for secured cards to start ramping up my credit score or should i wait until the discharge?  I've read about the USAA Secured card being an option and I'm a USAA member.

 

Thanks!

FICO Scores: (EX-735-11/12) EQ-757-12/03 (TU-750-11/12)
Discover FICO: 750 - 12/17 Walmart FICO: 740 -1/06
USAA FAKO: EX-742 EQ-761 TU-761

Macys $2.5k - USAA Secured $2.5k - NFCU $20k - Discover $3.3k - Cap One $2000 - Nordstrom $3.5k - Wells Fargo $1k - Walmart $2.3k- The Limited $900 - Victoria's Secret $1,150- Bloomingdales $2k- JCP $700
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Secured Cards

I'd personally wait.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Secured Cards

I would apply. I also filed Chapter 13 in 2005 with a 5 year repayment plan. I acquired an auto loan in 2008 and a unsecured Orchard Bank card in 2009. The auto loan was approved by the trustee and the credit card did not need trustee approval and I was also approved for the card with a $300 limit. Those two new trade lines helped jump start my recovery tremendously! By the time I was discharged in 2011, I had a credit limit of $1100 on the card and a year later was approved for a Capital One Cash Rewards card with a $2000 limit. The limit was raised to $2500 a couple of months ago. And I now have two more credit cards, a Chase Freedom and a Best Buy store card with limits of $1000 and $2500.

A 5 year Chapter 13 BK is too long of a period to wait to apply for a new credit. People need a car perhaps because one is aging and there are many other factors to why applying for credit before a Ch 13 discharge makes sense. One of those factors is the need to rebuild. The sooner you start, the sooner you will recover after BK 13 discharge.

I wouldn't have closed on a brand new home last month, have a brand new Acura TL with tier 1 lease financing, and 4 credit cards with a total limit of $7100 if I hadn't started the rebuild before discharge by establishing new credit.

Start now!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
Posts: 50
Registered: ‎11-06-2012
0

Re: Secured Cards

I'd wait simply because many 13ers get unsecured cards right out of discharge once the DC is reported.  It is not uncommon for a 13er to have scores in the 700's after DC in a 5 year plan because the BK will be old and about to fall off in two more years, and most of your IIB accounts should have fallen by now.

 

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

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.