topic Re: Nasty Surprise Post-BK from US Bank in Bankruptcy

Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 16:50:58 GMT

So, I applied for and I'm qualified for a Secured Skypass Visa from US Bank (meaning that until they get confirmation that they did transfer the $1,000 security deposit from my savings account, they can't say that I'm approved but I'm pretty much approved) and I was speaking with a lady at their call centre over the phone. One of my questions got her thinking and looking at my credit report and she noticed my bankruptcy (as it was filed in January of last year) and she told me that US Bank has a hard rule that they don't give unsecured credit for five years post filing, so I won't be qualified to graduate to an unsecured card with US Bank until February 2022!

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 16:52:55 GMT

Doesn't matter much, you will still be building history with them and that counts for a lot with US Bank and other banks who will note your responsible pay history.

A BK on your profile can break deals with lots of banks, it's nice that US Bank accepts it and still offers a secured card. Some secured cards don't allow a BK, which is senseless.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 16:55:36 GMT

True, but do you know if they report to the credit bureaus as unsecured or as secured? I ask because my On Tap Visa from my credit union reports as unsecured.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 17:06:50 GMT

OP,

I don't know how US bank reports but I know for sure both Wells Fargo and Discover report secured card as secured on TU. However, I don't think fico takes into consideration whether the accounts are secured or not. What matters to fico is your on-time payment for each account and your UTI.

Maybe someone else who has US Bank will chime in.

Good luck!

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 17:17:15 GMT

Out of curiousity, how is a high utilization handled historically.Like, if the first month I got my cards, my utilization is like 86% (because I did just fund three secured cards, paying $2,600 for three secured cards) and the next month and all the following months, it's closer 5%, how does that look?

Re: Nasty Surprise Post-BK from US Bank

happypill — Fri, 26 Jan 2018 17:17:47 GMT

I think the OPs concern is that they'll be holding onto the $1000 security deposit at least until 2022 and there might be better ways to put that money to work. You might consider looking into a BofA secured card. Not sure their policy on BK, but they do seem to graduate pretty regularly within a year if you treat it right.

Re: Nasty Surprise Post-BK from US Bank

Shadowfactor — Fri, 26 Jan 2018 17:25:46 GMT

I had a US bank secured card. The regular version.

It reported as a secured credit card. FICO does not calculate different for secured or unsecured. But a manual review will show it.

It’s not uncommon for banks to deny app’s Post BK for 5 years. Chase and Amex have very similar rules. Chase used to be 5 years post discharge but I’ve been reading that it’s now the entire time it’s on your credit report.
Amex is 5 years + 1 month.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 17:27:20 GMT

I've applied for their secured card (as I already have a chequing account with BoA) and I was rejected. Though, I never got a letter explaining why I was rejected. Right now though, I'm thinking about holding off on any new accounts and letting my current collection of accounts age and build a positive history with the bureaux. I already have five cards (three of which are unsecured), with one more on the way, and a creditbuilder "line of credit" through my credit union. I think if I wait six months, get my utilization down, and make good on my payments, I should be able to get some better cards.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 17:38:49 GMT

Shadow,

Darn, I was talking to a person from Chase's reconsideration line and they didn't say anything about bankruptcy being a disqualifier for the entire length of time your bankruptcy is reported. Gee, that sucks.

Hopefully, by then, I'll be able to have a bit more of a diversified credit report. My credit union says that I'm only prohibited from getting a car loan from them two years post-BK and a mortgage in four.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 19:27:58 GMT

wrote:
Shadow,
Darn, I was talking to a person from Chase's reconsideration line and they didn't say anything about bankruptcy being a disqualifier for the entire length of time your bankruptcy is reported. Gee, that sucks.
Hopefully, by then, I'll be able to have a bit more of a diversified credit report. My credit union says that I'm only prohibited from getting a car loan from them two years post-BK and a mortgage in four.

That is not true about Chase rejecting BK filers for the entire time. Someone posted that in a thread, but later updated the thread to say the information was incorrect. You will be automatically declined with Chase if you have a BK, but many have been able to reconsider sucessfully.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 19:32:07 GMT

wrote:
So, I applied for and I'm qualified for a Secured Skypass Visa from US Bank (meaning that until they get confirmation that they did transfer the $1,000 security deposit from my savings account, they can't say that I'm approved but I'm pretty much approved) and I was speaking with a lady at their call centre over the phone. One of my questions got her thinking and looking at my credit report and she noticed my bankruptcy (as it was filed in January of last year) and she told me that US Bank has a hard rule that they don't give unsecured credit for five years post filing, so I won't be qualified to graduate to an unsecured card with US Bank until February 2022!

You could use the US Bank secured card to help build your credit for a year, then close it and get your money back. It should have served it purpose by then, allowing you to qualify for unsecured cards. There's no way I would tie my funds up for 5 years in a secured card.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 19:42:40 GMT

What would I be able to use in a reconsideration call with Chase and when should I make that call? Like, once I have a year long, pristine payment history on all my cards? Or should it be longer, like two years?

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 19:49:28 GMT

wrote:
What would I be able to use in a reconsideration call with Chase and when should I make that call? Like, once I have a year long, pristine payment history on all my cards? Or should it be longer, like two years?

You can search for some of threads on Chase reconsideration to see what folks said who got approved. I don't think you will be able to get approved after a year, probably more like 3 or more years.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 19:51:34 GMT

Had to ask. I am interested in getting these nicer cards like Chase Sapphire or the United cards.

Re: Nasty Surprise Post-BK from US Bank

Dalmus — Fri, 26 Jan 2018 20:10:47 GMT

I have to ask, why do you want to get another secured card? According to your signature, you already have more than enough credit accounts for maximizing your FICO score. Remember, "nicer cards" are a want, not a need. Your FICO score and, and the automated systems of lenders, don't care if you have a CreditOne or an Amex Platinum. They only care about payment history and utilization.

I don't see the point in tieing up more money in secured cards at this point. I would let what you have age for a at least 6 months, then start checking CapOne and Layne Bryant for soft pull CLI's. Then start checking the prequalify sites: If you behave for the 6 months, you'll likely start qualifying for better unsecured cards from Capital One at the very least.

My other, unsolicited advice (that you may have seen elsewhere here) don't fall into the Store Card trap that many of did at the start of our rebuild. In the long run, having a ton of store cards is more of a clerical and security burden than they're worth, not to mention they cause you to buy things you don't need just to keep them active and open. Also, they can potentially harm you when it comes to things like insurance rates.

But congrats on the discharge... Its an amazing feeling to have the dead weight lifted from around your neck, isn't it?

Re: Nasty Surprise Post-BK from US Bank

VLGaffEsq — Fri, 26 Jan 2018 20:16:47 GMT

From my own personal experience (even with a FICOscore of 747), Amex will not give you a credit card even after a bankruptcy falls off all 3 of your credit reports UNLESS you work out something with your prenvious accounts with them. When I recently applied for the Amex Everyday Blue Cash card, they didn't hit me with a hard inquiry, but wanted me to call and discuss settling up with my previous Amex Gold card account. No thanks...I'm fine with my Well Fargo Cash Wise Visa ($7,000), Chase Freedom Unlimited Visa ($4,500), Discover It ($2,500) and CapitalOne Quicksilver Visa ($3,250). I may try and back door into an Amex branded card in a year with US Bank, but only if my credit score is over 800.

Re: Nasty Surprise Post-BK from US Bank

Anonymous — Fri, 26 Jan 2018 20:20:32 GMT

Amex will approve you once your bankruptcy is 5 years, 1 months old, as long as you never burned them.