topic Re: too soon to get a CC after BK? in Credit Cards

too soon to get a CC after BK?

Anonymous — Thu, 24 Jan 2008 17:35:54 GMT

BK discharged 11/2007.

BK was due to hubby's business failure and the leasing company suing us. Only ONE personal account was supposed to get included in my BK, but Chase proactively closed my perfect account. So did my AA.com card (also perfect).

Experian credit score is 691 as of today.

The only card that didn't close was my Kohl's card (perfect history of 6 years).

We still have the house, 1 car loan, and 1 car lease. All perfect payment history of 5+ years, 4 years, and 1 year respectively.

We have plenty of money in savings, so we don't need a CC for emergency situations. I would like to get one to build up credit.

Given the facts above, should I even try to get a CC or wait until 6 months post-BK or even 1 year post-BK? I don't want a CC with an annual fee or any hidden fees, so I'm willing to wait if needed so I have more options.

TIA!

Re: too soon to get a CC after BK?

CreditDrama85 — Thu, 24 Jan 2008 17:52:36 GMT

CapOne or HSBC Discover

Re: too soon to get a CC after BK?

Anonymous — Thu, 24 Jan 2008 18:29:14 GMT

Hi mitchellejax, and welcome to the forum. There's a wealth of information here to help you, and many knowledgeable people to answer your questions.

With an EXP score of 691(providing it is a true FICO score, and not a Vantage score) IMO, you would qualify for some nice cc's. I wish I had an EXP FICO score of 691!

Take a look, and play around in the whogavemecredit.com website. Plug in your FICO score and see what pops up:

http://www.whogavemecredit.com/index.php?page=search.php&srch=score

Here's another website I've found very useful that matches scores with the appropriate cc's.

http://www.financeglobe.com/ScoreMatch/?gl&gclid=COiUr97s944CFRcbWAodswwy0w

Re: too soon to get a CC after BK?

Anonymous — Thu, 24 Jan 2008 20:01:52 GMT

I wouldn't try HSBC discover, you may be better off with orchard and the like. I would definitely give it at least 6 mos which would put you in May for Cap1. I had a friend approved for an unsecured HSBC rebuilder Plat immediately after BK. Depends on what it did to your scores.

Re: too soon to get a CC after BK?

Anonymous — Thu, 24 Jan 2008 21:02:46 GMT

I know this sounds like a dumb question, but why would CCC's close accounts that are in good standing after a person's bk?? Especially if these accounts are old and the CCC's would have seen them when they approved the applications for new credit.

Message Edited by landocalrissian on 01-24-2008 01:02 PM

Re: too soon to get a CC after BK?

Anonymous — Thu, 24 Jan 2008 21:05:26 GMT

BK is one of the biggest indicators of financial trouble. Banks have been known to close or reduce limits just because of high uti.

Re: too soon to get a CC after BK?

octavia — Thu, 24 Jan 2008 21:58:51 GMT

Michelle,

While I was still in BK13, I got a Credit One card in 2003 with $300 CL(now $1,100 CL). The CL sucked but I had no other CCs. BK13 Discharged in 2005.

In 2006 I got an Orchard Bank card (with $2,000 CL).

December 2007 received a pre-qual offer for Juniper and went for it. Only $1,500 CL though, it's a start.

Octavia.

Re: too soon to get a CC after BK?

Anonymous — Sun, 27 Jan 2008 18:49:09 GMT

I'm in a similar boat as you Michelle, here's my experience.
Ch7 filed 05/07, dishcharged 09/07
Orchard received 2 days after discharge - 300CL
Capital One 10/07 - 500CL (just received CLI to 750 for 3 on time payments, automatic, no inquiries)
Orchard #2 12/07 - 500CL
Revolution Card 12/07 - 1000CL (haven't seen this report to the CRA's yet though)
Tribute 12/07 - 1000CL
Capital One No Hassle Rewards 01/07 - 1500CL

FICO's as of 1/21 are TU 621, EQ 638, EX 614. Credit before the BK was pretty good, filed due to a business failing and have been working on the scores since 05/07 getting incorrect baddies removed from the CRA. TU is the only score I know before the discharge, it was 438 in July 07. Not a single late since I started things over and Cap1 has so far showed the most love with their recent approval of a 1500 card. No luck with Orchard yet but then I haven't tried their back door number either. The cards though have DEFINITELY helped the scores - no doubt FICO loves revolving credit - in my case anyway.

Re: too soon to get a CC after BK?

marty56 — Sun, 27 Jan 2008 18:51:50 GMT

American Express closed my card when I wnet into DMP even though the card was paid on time and had a 0 balance on it.

Re: too soon to get a CC after BK?

Anonymous — Sun, 27 Jan 2008 19:22:35 GMT

"I know this sounds like a dumb question, but why would CCC's close accounts that are in good standing after a person's bk?? Especially if these accounts are old and the CCC's would have seen them when they approved the applications for new credit."

I have no idea why they cancelled the cards. We had 4 credit cards total that weren't supposed to be included in the bankruptcy. 2 had a zero balance. 1 had a $1500 balance and a $10k credit limit and the other had a $3200 balance and a $10k credit limit. All 4 had perfect histories on them. All 4 were closed by the company leaving us with ZERO credit cards. We saw about $35k worth of credit limit disappear without any warning...

One company was stupid enough to close the account and then sue me for the balance. Uh... idiots... YOU were the one who closed the account on a perfect history credit card and then told me I didn't owe anything when I tried to argue with them to keep the account open... Thankfully, I had made a post-petition payment on it which they refunded to me before they sued me, so they pretty much ruined their case and had to dismiss it.

Re: too soon to get a CC after BK?

Anonymous — Sun, 27 Jan 2008 19:24:48 GMT

Thanks to everyone for the advice!!! I have 2 accounts that didn't get closed right/reported correctly after the bankruptcy, so I'll get those fixed on my credit report and then take the advice given here on who to try for my first post-BK credit card...

Re: too soon to get a CC after BK?

Anonymous — Sun, 27 Jan 2008 20:45:16 GMT

hi michelle

I'm going through it now. I came through bk13 with mid 600 scores but many still won't loan money because of the recent bk.

Any of the bank cards that will consider us will have less then optimal terms. Cap 1 turned me down even though other recent bk have gotten cards. They will have fees. Premier? Outrageous. Orchard Bank approved an unsecured 300 card (59 fee) before I found 2 credit unions (NFCU and EDSCU) that gave me unsecured cards.

A cheap way to get a couple of positive TLs going is to join a couple of credit unions, open a couple of secured cards and/or a secured installment loan. Borrow 300-500 and pay it off over 12 months, FICO likes more then one type of open TL.

You can use findacreditunion.com to find whats near you and call a couple. Ask them what CRA they report to so you can spread the good news around.