Just Applied for First Card Post-Discharge

Anonymous · ‎06-29-2019

Hi all,

Thanks for your help as I've progressed through my bankruptcy journey! To recap, I filed on 2/8/19, had my 341 meeting on 3/12/19, and received my discharge on 5/15/19. I burned BoA, Barclay, Citi, and Marcus by Goldman Sachs and those accounts are correctly showing as IIB with a $0 balance on all of my credit reports. I also have a Discover Card and a second Barclay card reporting as IIB on my credit reports even though they had a $0 balance when I filed but my attorney insisted on listing them on the petition so I'm told that they're allowed to show as deragatory accounts.

My remaining active accounts post-bankruptcy are my student loans (six seperate accounts but all by the same lender) and my auto loan that I reaffirmed and is correctly reporting all of the payments that I've made on it since inception all the way through this month.

My current scores, as of this morning, are Equifax: 649; Transunion: 610; Experian: 620.

I did a pre-qualification check on Capital One's website and qualified for the Platinum card and the QS1 so I applied for the Platinum card and was given a $2K credit limit!

If I'm understanding correctly, my next steps are to use the Platinum card (my plan is to put my monthly MyFICO autopay on the card) and then PIF once the statement cuts. I don't think I have a need for a credit builder loan since I already have a bunch of installment loans. No sooner than six months from now, I'll apply for a Discover IT card and keep chugging along on the journey. Am I missing anything else?

Thanks again!

Anonymous · ‎06-29-2019

I like your plan. You are correct that you don't need a credit builder loan as it wouldn't do anything to help your scores. The Capital One was a good move. You could always try the prequal on Disco as much as you want since it's only a SP. GL on the rebuild!

Anonymous · ‎06-29-2019

@Anonymous wrote:
You could always try the prequal on Disco as much as you want since it's only a SP. GL on the rebuild!

Thanks for the well wishes! Would I be better off waiting to apply for the Discover card or is there no reason to wait? The path to 700 forum recommended a six month wait, which is why I didn't apply immediately.

Anonymous · ‎06-29-2019

@Anonymous wrote:
@Anonymous wrote:
You could always try the prequal on Disco as much as you want since it's only a SP. GL on the rebuild!
Thanks for the well wishes! Would I be better off waiting to apply for the Discover card or is there no reason to wait? The path to 700 forum recommended a six month wait, which is why I didn't apply immediately.

I haven't read the "path to 700 thread". I'm sure it would be helpful to show some positive payment history since the BK. I will recommend one thing though and I feel many people go wrong at this stage. Don't go out and get a bunch of crap cards just to show more accounts with positive payment history. You're rebuilding your base so ideally you need cards you can keep long term, if not forever. That is why I said Capital One was a good move. You have the ability to PC that card into something different in the future and you can keep it forever. I still have a Capital One from 19 years ago and there is no reason to ever close it.

Disco would also be a keeper forever. I understand that some people have no choice to get subprime rebuilder cards but you are different. You got a nice Capital One card that you can always keep as your oldest account. As your BK ages, more doors will open up for you and you won't be stuck with a bunch of junk accounts that you want to get rid of.

FireMedic1 · ‎06-29-2019

Let what you have grow at least 6 months. In 3 months you could upgrade the Plat to a QS and then start getting cashback. Then credit steps will give you a CLI in whatever their terms were. Bookmark this page: https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade

Like poster above said. You can check Disco's pre-qual. Its a SP. Look for a set APR if they show you cards you might like. Otherwise just keep letting things age. You'll be fine in time.

Anonymous · ‎06-30-2019

@FireMedic1 wrote:
Like poster above said. You can check Disco's pre-qual. Its a SP. Look for a set APR if they show you cards you might like. Otherwise just keep letting things age. You'll be fine in time.

I did the prequal on Discover's site and it said that they were unable to offer me anything because "STATUS OF EXISTING / PRIOR DISCOVER CARD ACCOUNT." I'll call the phone number provided on the PDF letter tomorrow but I'm hoping I'm not perminanetly burned from Discover for listing them on the bankruptcy petition even though the card was fully paid off and never had a single late payment.

*sigh*

pizza1 · ‎07-01-2019

You received that response because you burned Discover in your BK. You won't get them back for 1-3 years post DC, possibly.

Anonymous · ‎07-01-2019

@pizza1 wrote:
You received that response because you burned Discover in your BK. You won't get them back for 1-3 years post DC, possibly.

I'm confused, I thought if a bank didn't have to write any money off (i.e. $0 balance and PIF before bankruptcy), it wasn't considered burning them. Discover never, at any point, suffered a loss on my account. Did I misunderstand?

gorgon · ‎07-01-2019

@Anonymous wrote:
@pizza1 wrote:
You received that response because you burned Discover in your BK. You won't get them back for 1-3 years post DC, possibly.
I'm confused, I thought if a bank didn't have to write any money off (i.e. $0 balance and PIF before bankruptcy), it wasn't considered burning them. Discover never, at any point, suffered a loss on my account. Did I misunderstand?

You still have a major derogatory on your credit report. Whether Discover was IIB, some banks will still blacklist you for months to years before they let you get a credit product with them simply because you have a BK on your report.

Anonymous · ‎07-01-2019

@gorgon wrote:
You still have a major derogatory on your credit report. Whether Discover was IIB, some banks will still blacklist you for months to years before they let you get a credit product with them simply because you have a BK on your report.

Makes sense! I was hopeful that they'd be playing nice since I've heard they're one of the "friendlier" banks but I need to remind myself to be patient and that I'm in the rebuilding process for the long run.