Establishing better credit

VAA616 · ‎07-28-2021

Is it better to apply for cc's and risk denials or to wait for pre-approvals? I'm very interested in PenFed because of what I've read in this forum. I opened a savings account last week. C7 was discharged 2/20. Fico: EX=683, EQ 661, TU=675.

Horseshoez · ‎07-28-2021

@VAA616 wrote:
Is it better to apply for cc's and risk denials or to wait for pre-approvals? I'm very interested in PenFed because of what I've read in this forum. I opened a savings account last week. C7 was discharged 2/20. Fico: EX=683, EQ 661, TU=675.

I was discharged in March 2020 and got approved by PenFed in March 2021 with scores very similar to yours. I'd say give it a shot.

Chapter 13:

Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
Filed: 26-Feb-2015
MoC: 01-Mar-2015
1st Payment (posted): 23-Mar-2015
Last Payment (posted): 07-Feb-2020
Discharged: 04-Mar-2020
Closed: 23-Jun-2020

I categorically refuse to do AZEO!

In the proverbial sock drawer:

jmw1 · ‎07-28-2021

@VAA616 wrote:
Is it better to apply for cc's and risk denials or to wait for pre-approvals? I'm very interested in PenFed because of what I've read in this forum. I opened a savings account last week. C7 was discharged 2/20. Fico: EX=683, EQ 661, TU=675.

Go for soft pull preapprovals (see thread on myfico forums for this), preappovals in the mail for no annual fee, and secured cards. If you literally can't get a single approval on a secured card, then go for one card with an annual fee. Soft pull preapprovals that say bankruptcy as one of the denial reasons means you have no chance at getting the card right now. You might have to wait 6 months, 12 months, or 24 months after the bankruptcy. A lot of banks are moving to their own scoring systems don't rely on FICO much anymore so hard inquiries can hurt more than the FICO score suggests up to the 24 months they are on the report. So I wouldn't burn hard inquries unless I was pretty sure the chances of approval are high due to a soft pull preapproval.

chalupaman · ‎07-29-2021

At this point, it wouldn't hurt to give such cards like Penfed a go. You can also start having other tradelines as well, though you should also be getting preapproval stuff in the mail as well.

Tradelines: Macy’s - $18k, Penfed Power Cash Rewards - $10k, Ethan Allen (TD Bank) - $5.7k, Kay Jewelers - $5.5k, Appliances Connection - $5.3k, Jared - $5.25k, Best Buy (Citi) - $5k, Dell Preferred Account - $3.5k, Samsung - $3.2k, Firestone CFNA - $3.2k, Capital One Platinum - $3k, Mercury MC - $2.25k, Williams Sonoma - $2.1k, Wayfair (Fortiva) - $2k, Amazon Store Card - $1.8k, Apple Card - $1.7k, NFCU cashRewards - $1.5k, CareCredit - $1.5k, B&H Photo - $1.5k, Adorama - $1.25k, Ebay MC - $1k, Sam’s Club MC - $1k, American Eagle - $1k, Ollo MC - $600, Mission Lane Visa - $500, NY & Company - $500, Walgreens - $500, Home Depot - $500, Target RED Card - $500, CapOne Secured MC 0 AF - $500, Penfed Overdraft LOC - $500

Current FICOS: Mid 640s-50s on all reports, Ch 7 BK D/C Aug 2019
Starting scores: EX - 534, EQ - 574, TU - 516 | Total TLs: $91k approx | Total Utilization: 17%, getting this back down

Guyatthebeach · ‎07-30-2021

VAA616,

Penfed is a solid credit union with good customer service and an excellent portfolio of products. You have the scores to get approved. If you already 12 months of solid payment history post bankruptcy, then go on and apply. If you don't, wait until you do, then apply. The credit history will help get you approved.

Also as someone else previously commented, check out the preapproval thread. I know for a fact the Comenity Toyota Visa is solid. I have a friend that got hers 2 years post bankruptcy. With your scores, you have a solid chance.

Guyatthebeach

Red1Blue · ‎07-30-2021

Good luck with your rebuild.