topic Re: Rebuilding credit after bankruptcy… which cards? in Rebuilding Your Credit

Rebuilding credit after bankruptcy… which cards?

simicalif — Fri, 22 Aug 2025 23:19:50 GMT

My chapter 7 discharge just came through. I am now looking to rebuild my credit. Obviously a credit card will need to be acquired. My concern is for the future. I have pre approvals for the capital one saver card and a mission lane card. Both with no annual fee, high internet rate as expected, not sure the limit on the savor card but the mission lane is $3k. I'm not looking to open a bunch of accounts and start spending wildly, I definitely learned my lesson, but I'd like one card that will help me rebuild. I've heard good things about both, but I'm worried about both these cards being seen as subprime to other future lenders when I eventually look to acquire better cards/a new vehicle when the time eventually comes. That being said, I stopped payments on my credit accounts a year before filing my bankruptcy so my scores aren't great, so wondering if by the time I'm into my repair enough to advance if the subprime label won't be really effecting me that much?

I bank with Unify Financial Credit Union, and I hear that in the past they were very friendly post bankruptcy discharge but in recent months they've tightened up. I'm looking to try and get into PenFed but after my divorce I'm currently living with family and the only utility bill I have is my cell phone bill. I burned my local credit union and NavyFed as well.

Any recommendations or experiences would be much appreciated. Thank you!

Re: Rebuilding credit after bankruptcy… which cards?

JoeRockhead — Fri, 22 Aug 2025 23:42:20 GMT

For now your choices are going to be limited. Nothing wrong with either, or both of those choices. Your main concern should be to reestablish a positive payment history, and show responsible credit use.

Consider getting two to three cards over the next 6 to 12 months and practice AZE1 (AZEO). Better cards will come down the road.

Re: Rebuilding credit after bankruptcy… which cards?

FicoMike0 — Fri, 22 Aug 2025 23:47:11 GMT

I would avoid subprime cards if possible, but they don't actually hurt your credit, they still count as "paid as agreed" accounts, they're just dead end. Capone is not considered subprime, but they are bk friendly and offer low end cards. There is a difference between 'savior' and 'savior one', the latter has a fee. Capone also offers secured cards. The advantage of Capone is that as your credit improves, they usually offer to upgrade, or product change you to better cards. This does not involve a hard inquiry and keeps the issue date, helping with account age.

I have not read any bad things about mission lane, but I don't see them as a path forward.

I don't understand the comment about utility bills and penfed. I've never been asked for a utility bill by any cu or bank. Anyone can join penfed.

Re: Rebuilding credit after bankruptcy… which cards?

Patient957 — Fri, 22 Aug 2025 23:50:47 GMT

@simicalif wrote:
My chapter 7 discharge just came through. I am now looking to rebuild my credit. Obviously a credit card will need to be acquired. My concern is for the future. I have pre approvals for the capital one saver card and a mission lane card. Both with no annual fee, high internet rate as expected, not sure the limit on the savor card but the mission lane is $3k.

I would take either or both, as long as they have no annual fee. Capital One has more long term growth potential, IMO, but ML might have a higher initial limit and grow faster, at least at first.

If you pay your statement balance(s) in full each month, which is definitely the recommended approach to a rebuild (and beyond), then interest rate doesn't matter.

I've heard good things about both, but I'm worried about both these cards being seen as subprime to other future lenders when I eventually look to acquire better cards/a new vehicle when the time eventually comes.

This isn't a thing, so don't worry about it. They're both bank issued credit cards. The only thing that will matter about these tradelines is how you manage your balances and payments.

Good luck on your rebuild!

Re: Rebuilding credit after bankruptcy… which cards?

simicalif — Fri, 22 Aug 2025 23:53:45 GMT

@FicoMike0 wrote:
I don't understand the comment about utility bills and penfed. I've never been asked for a utility bill by any cu or bank. Anyone can join penfed.

I tried to join PenFed recently and they asked for documents to verify my physical address, either two utility bills in my name at that address, or a lease agreement. Since I have no utility bills besides my Verizon wireless bill, and I live with family members currently I have no lease, so I didn't go any further into the process than that.

Re: Rebuilding credit after bankruptcy… which cards?

FicoMike0 — Sat, 23 Aug 2025 00:04:21 GMT

I've lived at the same address a long time, I guess that's the difference. Do to get mail from your present bank? Ask for you statement to be snailed? That would give you a mailed doc.

Btw, here's an offer,

https://www.capitalone.com/bank/offer300/

Re: Rebuilding credit after bankruptcy… which cards?

Varsity_Lu — Sat, 23 Aug 2025 01:40:12 GMT

Savor is not a subprime card. I'd go with it because it's a great card. Many people, myself included, carry it daily and plan to keep it long term. No lender is going to see that card in your file and think negatively.

Re: Rebuilding credit after bankruptcy… which cards?

FicoMike0 — Sat, 23 Aug 2025 01:48:11 GMT

Ditto @Varsity_Lu , I like savor to.

With recent bk, the op was likely offered savor one, the same card with a $39 af. Still not bad, break even is $1300 spend in the 3% cat. Should eventually upgrade to no fee.

Re: Rebuilding credit after bankruptcy… which cards?

simicalif — Sat, 23 Aug 2025 02:02:58 GMT

I was pre-approved for "Savor Rewards for good credit" up to 3% cash back, no annual fee... but the "for good credit" part makes me think I might not get that after a hard pull... now I'm wondering. Don't wanna hit a hard pull right out of the gate for nothing...

It also said I was preapproved for a quicksilver card as well as a platinum card, all three with no annual fee... but 29.74% interest for all 3... what to do...

Re: Rebuilding credit after bankruptcy… which cards?

Patient957 — Sat, 23 Aug 2025 02:40:04 GMT

@simicalif wrote:
@FicoMike0 wrote:
I don't understand the comment about utility bills and penfed. I've never been asked for a utility bill by any cu or bank. Anyone can join penfed.

I tried to join PenFed recently and they asked for documents to verify my physical address, either two utility bills in my name at that address, or a lease agreement. Since I have no utility bills besides my Verizon wireless bill, and I live with family members currently I have no lease, so I didn't go any further into the process than that.

Maybe @FicoMike0 joined back in the Stone Age, before we had utilities let alone utility bills. (Of course, you know I'm only kidding, Mike.)

PenFed has become a total PITA. Here is what they demanded of me:

Which is not unreasonable, at least in priciple. But I won't even get into the run around and terrible customer experience joining was for me. But I was finally able to satisfy them with a Real ID drivers license, with the correct address, and social security card. I hadn't seen my SS card in decades, so I had to order a new one. (I think my original SS card was issued at some point back in the Stone Age.)

Re: Rebuilding credit after bankruptcy… which cards?

Varsity_Lu — Sat, 23 Aug 2025 12:27:53 GMT

@simicalif wrote:
I was pre-approved for "Savor Rewards for good credit" up to 3% cash back, no annual fee... but the "for good credit" part makes me think I might not get that after a hard pull... now I'm wondering. Don't wanna hit a hard pull right out of the gate for nothing...

It also said I was preapproved for a quicksilver card as well as a platinum card, all three with no annual fee... but 29.74% interest for all 3... what to do...

Well, any pre-approval tool will run the risk of a HP denial. But if you want to keep subprime starter cards off your report, Savor is your best bet based on what you have presented. I mean, Mission Lane is clearly a subprime lender designed for rebuilds and beginners. Savor is not.

Re: Rebuilding credit after bankruptcy… which cards?

Patient957 — Sat, 23 Aug 2025 15:09:18 GMT

@simicalif wrote:
I was pre-approved for "Savor Rewards for good credit" up to 3% cash back, no annual fee... but the "for good credit" part makes me think I might not get that after a hard pull... now I'm wondering. Don't wanna hit a hard pull right out of the gate for nothing...

IMHO, you're overthinking this.

In Capital One speak, "for good credit" means "without a SUB." If you're preapproved, the "for good credit" shouldn't deter you from applying, unless of course you're hoping for a SUB, which in your case you're not. Capital One's preapproval tool is generally considered to be reliable. Is it a guarantee? No, but it's about as good as someone in your position (early rebuild) can hope for.

And even though Capital One does a triple hard pull (all 3 bureaus), one hard pull is not the end of the world.

If you just can't stomach the risk of a HP denial, and you didn't burn Amex in your BK, you can try for a BCE with a no ding denial. Can't hurt. But risking HP denials comes with the territory, and as stated earlier, Capital One preapproval is pretty reliable. I would apply directly from the link on the preapproval page.

Re: Rebuilding credit after bankruptcy… which cards?

Patient957 — Sat, 23 Aug 2025 15:05:14 GMT

@Varsity_Lu wrote:
Savor is not a subprime card... No lender is going to see that card in your file and think negatively.

I agree with this. But do lenders/underwriters really care about credit card brand? I don't think so. I don't think it factors in.

Re: Rebuilding credit after bankruptcy… which cards?

Minimalist — Sat, 23 Aug 2025 21:20:13 GMT

What was the reason for needing the bankruptcy in the first place? Was it credit cards? If that's the case I would seriously consider holding off on any applications for another six months after discharge and learning to live off cash, on a budget, and below your means. After that six months if all is working out I would then go for one credit card, and up to 2 or 3 every six months to a year, whatever you're comfortable with. And the Savor would be a nice choice if it's still offered at that point.

Don't put yourself in a similar situation in 8-10 years when you can file again.

Re: Rebuilding credit after bankruptcy… which cards?

simicalif — Sat, 23 Aug 2025 22:58:46 GMT

@Minimalist wrote:
What was the reason for needing the bankruptcy in the first place? Was it credit cards? If that's the case I would seriously consider holding off on any applications for another six months after discharge and learning to live off cash, on a budget, and below your means. After that six months if all is working out I would then go for one credit card, and up to 2 or 3 every six months to a year, whatever you're comfortable with. And the Savor would be a nice choice if it's still offered at that point.

Don't put yourself in a similar situation in 8-10 years when you can file again.

It was credit cards mostly, but I was working on paying them down and avoiding any baddies on my reports, but then I filed for divorce. Then we had to move out of our cheap housing much sooner than I anticipated due to a breakdown in relations between my wife and room mates. In order to keep a roof over my kids head I really had no choice but to stop paying.

I definitely will not be letting that happen to me ever again. I'm simply trying to rebuild correctly.

Re: Rebuilding credit after bankruptcy… which cards?

FicoMike0 — Sun, 24 Aug 2025 00:25:33 GMT

Keep in mind, good credit is a score of 670 to 739. On a range including very good and excellent, good isn't really so good. It's the middle range.

Re: Rebuilding credit after bankruptcy… which cards?

AndySoCal — Mon, 25 Aug 2025 03:35:16 GMT

@simicalif I would suggest this credit card from Fortera credit union. I am a member of this credit union. I have not applied for one of there cards yet. To me the card linked below is designed IMO for consumers in your situation

https://forteracu.com/banking/personal/credit-cards/core-credit-card

Fortera will take new members from anywhere in the world US nothing to join

Re: Rebuilding credit after bankruptcy… which cards?

simicalif — Mon, 25 Aug 2025 07:14:03 GMT

Interesting... I can't find jack squat about them online besides you and one other member on here lol. How are they banking wise?

Re: Rebuilding credit after bankruptcy… which cards?

AndySoCal — Thu, 28 Aug 2025 13:42:33 GMT

@simicalif I am only using them for savings only not checking. I have only one checking account by design. When I have questions they are helpful. When I put in Fortera Credit Union reviews. Here is one of the sites that was in the results.

https://wallethub.com/profile/fortera-credit-union-13308814i

Re: Rebuilding credit after bankruptcy… which cards?

radgrapes — Mon, 01 Sep 2025 11:09:20 GMT

Mission Lane, Credit One and (Ally) Merrick seem to be the most friendly post BK and if you use them responsibly all three will give you automatic CLI within months...Our BK discharged 11/24 and we are well on our way to revuliding with these cards already.