So, are CC companies you "burned" in BK unlikely to approve a new card for you?

[DaveInAZ]

As I read through the threads I see repeated references that if you "burned" a CC company (discharged a debt to them in Ch.7) in BK, they are unlikely to approve new card for you. Capital One seems to be a repeat culprit.

I my Ch.7 BK discharged in Jan. 2011, I discharged significant debts to:

Capital One (2 accounts)

Chase Bank (2 accounts)

Citibank (1 large account)

I have avoided applying for new cards from them assuming they would turn me down and I would waste a credit inquiry affecting my score.

But, I also burned GE Money Bank, now Synchrony Bank, for 2 accounts, but they approved a Wallmart store card for me in 2/13 with $1400 credit limit, and keep raising with my paying balance in full each month, now up to $2400 limit. And then they approved an Amazon store card for me in March of this year.

I ask as I'm going to cancel my best rewards card at the end of this month - Best Buy MC - because the credit limit is only $1000 with an annual fee of $50, and it's too hard to earn enough reward zone points to justify the annual fee while keeping the monthly balance under $300/30% of credit limit. So I want to apply for a good cashback rewards card, and Citi & Capital One have some of the best ones. I'm not concerned about interest rate, I always pay CCs in full each month - I'm getting .9% intererest on my IRA savings and those jokers still want 20%+ for a CC?

[0REDSOX7]

Capital One is known to accept people back who burned them in a BK. For me, they refuse to even look at me. Chase and Citi have a good memory and you may be banned for life with them as there has been limited success post BK with these.

Have you considered Barclays? They have the Rewards MasterCard and is really good.

[mrsjr]

I would suggest Barclay, Discover, and Capital One. I burned Capital One but I now have 3 of their top credit cards. I would suggest trying their prequalification site first, though.

[DaveInAZ]

Thanks for the replies. Yes, I have a Barclay Rewards, but haven't been using it. They're good, but you got to watch them. They sent me 'transfer checks' that could be used for anything with 0% for 18 months. I needed a temp loan and used them. I saw the obvious trap - if you charged on the card you could not pay in full every month as they would apply part of my payment on the 0% promo balance and charge me 22.9% on my purchases starting on day of purchase. So, I used the checks and put the card away so I wouldn't use it until the checks promo balance was paid off. I just paid off the last of the checks promo balance in late August, as the 0% rate ended in September. They promptly raised my credit limit from $3500 to $5700, and sent me more checks. Now I tear the checks up, and will be using it only for purchases.

BTW, I just did online chat with Best Buy Mastercard. They will not waive $50 annual fee, but offered to raise the credit limit. I said thanks but no thanks, not willing pay annual fees any longer, I've recovered post BK discharge sufficiently. I currently have 3 CC cards, not counting Walmart, Target & Amazon store cards:

Merrick Bank Visa - My first non-secured CC post BK. Punishing 25.45% rate, but very decent $3100 limit, but no rewards

Best Buy Reward Zone MC - Great rewards for $$ certificates that reduce the price for BB merchandise, and $3500 annual spending gets you free shipping at BestBuy.com (i'm fart frorm a store) and added RZ points. Downside: $50 annual fee, only $1000 credit limit.

Barclay Rewards MC - No annual fee, 22.9% interest, 1% cashback, at 1000 pts. you can apply $10 credit against your balance. They've raised me to $5700 limit.

I want to close Merrick Bank Visa and Best Buy MC., and get 1 new Visa/MC with the best cashback rewards.

I tried the Capital One prequalifier and it looks like they'll approve me for their rewards card with 1% cashback. The Discover it card is tempting as it offers 5% back on online purchase & I buy a lot online, but the Goggle compare says excellent credit is needed. Credit Karma has me at 697, Fair, but my CC's with free Fico scores have it only at 660-670.

[barbaralee]

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@DaveInAZ wrote:

Thanks for the replies. Yes, I have a Barclay Rewards, but haven't been using it. They're good, but you got to watch them. They sent me 'transfer checks' that could be used for anything with 0% for 18 months. I needed a temp loan and used them. I saw the obvious trap - if you charged on the card you could not pay in full every month as they would apply part of my payment on the 0% promo balance and charge me 22.9% on my purchases starting on day of purchase. So, I used the checks and put the card away so I wouldn't use it until the checks promo balance was paid off. I just paid off the last of the checks promo balance in late August, as the 0% rate ended in September. They promptly raised my credit limit from $3500 to $5700, and sent me more checks. Now I tear the checks up, and will be using it only for purchases.

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I am curious as to why exactly you feel you have to watch Barclays. The example you cited is common credit card practice whether it is Barclays or Citibank. Barclays has some cards that I think are more than worth considering. You can also call them and request that they stop sending the BT checks.

[DaveInAZ]

I thought it was pretty sneaky - the Barclays Rewards card is targeted toward those rebuilding their credit, poor to fair Fico scores, Citibank doesn't. And they certainly didn't discose in the check offer that payments would be applied proprtionally to the previous balance and new charges - I pulled our the terms that came with the card to find that out.

Barclays targets those with poor credit with their cards, and then tries to trap them into high interest with tempting offers of 0% interest 'convenience' checks. Many won't realize that if they use the checks & still charge on the card until it's too late. Barclays certainly isn't alone in that practice, but I felt they deserved a "watch out" warning. My Merrick Bank Visa is targeted toward poor credit, it was my first non-secured card w/no annual fee, with a decent credit limit by punishsing 25.5% interest. They've never sent me any 0% checks or any other gimmicky offer.

[DaveInAZ]

Holy crap! I just got approved for a Capital One Rewards card with $10,000 credit limit and 12.9% interest! I used the pre-qualifier first. Definately closing Merick Bank & Best Buy Master card - been suffering through annual fees, low credit limits, and high interest far too long.

[barbaralee]

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@DaveInAZ wrote:

I thought it was pretty sneaky - the Barclays Rewards card is targeted toward those rebuilding their credit, poor to fair Fico scores, Citibank doesn't. And they certainly didn't discose in the check offer that payments would be applied proprtionally to the previous balance and new charges - I pulled our the terms that came with the card to find that out.

Barclays targets those with poor credit with their cards, and then tries to trap them into high interest with tempting offers of 0% interest 'convenience' checks. Many won't realize that if they use the checks & still charge on the card until it's too late. Barclays certainly isn't alone in that practice, but I felt they deserved a "watch out" warning. My Merrick Bank Visa is targeted toward poor credit, it was my first non-secured card w/no annual fee, with a decent credit limit by punishsing 25.5% interest. They've never sent me any 0% checks or any other gimmicky offer.

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By your logic, then, people with poor credit should not be given the opportunity to do balance transfers, cash advances, etc. There is nothing sneaky about it. It is upfront: You do a BT check and then make purchases then the interest will be applied for the purchases. Every credit card company does that every. single. one. There is nothing sneaky about a common practice just because it is being marketed toward rebuilders.

You are right, a lot of people are not aware that credit card companies do that, but they eventually find out. It really is the cardholder's due diligence to educate themselves on such things.

[mrsjr]

Congrats on the Capital One approval. I love them!! I, too, was approved for 10K on one of their top cards. And they gave me the lowest rate they offer, and they did you too. Awesome. My BK is 2 1/2 yrs old. Congrats again.