cancel
Showing results for 
Search instead for 
Did you mean: 

Reusing creditor after bankruptcy

MacMan313
Contributor

Reusing creditor after bankruptcy

I should have my chapter 7 bankruptcy discharge in september. When I am looking to rebuild my credit and actually do things maturely this go around so I never end up in the same situation again. Im not looking to go on a credit rage, just trying to develop a solid plan to rebuild my credit.

 

Ive done some looking and have learned that Capital One is the best choice for a credit card after bankruptcy and that I should wait atleast a few months before applying.  I had an account with them that was charged off circa 2008 for non payment. (<  $500). This debt was included in my Chapter 7.

 

My question is, when I do eventually get to stage where I need to apply for a card, would this prior debt be an issue  that could keep me from getting approved. Do companies generally allow you to use their credit programs if you have been discharged from the previous debts?

 

I do not want to waste hard inquires when the time comes around.

 

 

EQ: 596 TU: 631 EX: 616 [CH7 Discharge 10/29/14] [Gardening since 3/23/15]

TruMark Rewards $2000 | Discover It Sec $1000 | Capital One Sec $800 | Walmart $400
Message 1 of 10
9 REPLIES 9
Shae123
Contributor

Re: Reusing creditor after bankruptcy

My discharge was in January 2014. Included Cap 1. Applied in February and was declined. Went with Credit One. Kohls (serviced by Cap 1) was approved in February too.  Was just approved for a Cap 1 Platinum account earlier this month.  But I've seen others apply the day they received their discharge and were approved so YMMV

Message 2 of 10
MacMan313
Contributor

Re: Reusing creditor after bankruptcy

A quick update: I applied for a Capital One card and was immediately granted approval to their secured program. It seems that they will be willing to work with me.

EQ: 596 TU: 631 EX: 616 [CH7 Discharge 10/29/14] [Gardening since 3/23/15]

TruMark Rewards $2000 | Discover It Sec $1000 | Capital One Sec $800 | Walmart $400
Message 3 of 10
HopeMission
Regular Contributor

Re: Reusing creditor after bankruptcy

Congrats Mac.  Thought I havnt specificly aplied for a Cap 1 card after discharge, I do know that alot of banks feel pretty secure issuing new secureed and even unsecured cards since you cant file Chap7 twice witthin a certian alloted amount of time.

Ex 673 | Eq 665 | 665 TU (10-9-18)
Filed BK7: 11/2014 (start score TU 749) Discharge 4/2015 578 TU

$11,500 Cap1 Spark | $7,000 Cap1 QS | $5,500 Barclay | $500 Secured card w/ Western Fed CU | $3,000 Un-Secured Fry’s First Electronic Bank | Macy's 3,500 | Disc 11,500 | $100 Un-Secured Share Loan | all Util under 3%
Message 4 of 10
MacMan313
Contributor

Re: Reusing creditor after bankruptcy

I haven't had any luck with unsecured cards.. I've tried Walmart and target, cap1 to no avail
EQ: 596 TU: 631 EX: 616 [CH7 Discharge 10/29/14] [Gardening since 3/23/15]

TruMark Rewards $2000 | Discover It Sec $1000 | Capital One Sec $800 | Walmart $400
Message 5 of 10
kawaii
Established Member

Re: Reusing creditor after bankruptcy

I had a Capital One card included in my BK (approx $2k) and I was approved for two unsecured Capital One cards within months. $3k limit on both. One was approved two months after discharge and the other three months after. They did require income verification but once I sent in a copy of my most recent paystub, I was approved.

Message 6 of 10
jim44
Established Contributor

Re: Reusing creditor after bankruptcy

That's what I heard alot too before and just after Chapter 7.  Each bank is different in how they treat customers with BK's Some will allow credit even if you've burned them in BK others insist on waiting years after or won't approve an unsecured card until your BK falls off your CR.  I've had problems with Citi and Discover Fin.  I burned both however with CIti I had a 15 year spotless payment history with them. and they still won't even give me a Citgo Gas Card.  With Discover it was a 10 year perfect history.   So YMMV, read on the forum which CC banks are BK friendly and good luck on your journey.  I admire your positive outlook through all this.


@HopeMission wrote:

Congrats Mac.  Thought I havnt specificly aplied for a Cap 1 card after discharge, I do know that alot of banks feel pretty secure issuing new secureed and even unsecured cards since you cant file Chap7 twice witthin a certian alloted amount of time.


 

Message 7 of 10
DKB140
New Member

Re: Reusing creditor after bankruptcy

If you're not sure about Capital One, I would use their pre-approval card finder link.  Soft inquiry to find their best offer before actually applying.

Message 8 of 10
Ladycape70
New Member

Re: Reusing creditor after bankruptcy

Hey there!

 

 

I had multiple CAP 1 account prior to my CH 7 discharge (April 2013). Three months later, I opened an auto loan (crappy rate, but live and learn) and opened a secured Master Card. This past June, I was approved for regular unsecured card.

 

What I like about the secured card is that (in my case) I only had to put down (I think 25.00) and got a $250 line of credit. I added some more cash to increase my limit. I can go up to $3000.00

 

The only open accounts I hold are Capital One. In my expirience, Cap One is definately an option post BK.

 

GOOD LUCK!


@MacMan313 wrote:

I should have my chapter 7 bankruptcy discharge in september. When I am looking to rebuild my credit and actually do things maturely this go around so I never end up in the same situation again. Im not looking to go on a credit rage, just trying to develop a solid plan to rebuild my credit.

 

Ive done some looking and have learned that Capital One is the best choice for a credit card after bankruptcy and that I should wait atleast a few months before applying.  I had an account with them that was charged off circa 2008 for non payment. (<  $500). This debt was included in my Chapter 7.

 

My question is, when I do eventually get to stage where I need to apply for a card, would this prior debt be an issue  that could keep me from getting approved. Do companies generally allow you to use their credit programs if you have been discharged from the previous debts?

 

I do not want to waste hard inquires when the time comes around.

 

 


 

Message 9 of 10
Pway
Valued Contributor

Re: Reusing creditor after bankruptcy

Have you tried Comenity Bank.  They are BK friendly.  I currently have an Express credit card with them.  I would also suggest opening a secured card at your credit union.  


@MacMan313 wrote:
I haven't had any luck with unsecured cards.. I've tried Walmart and target, cap1 to no avail

 

Barclay Reward MC 750|Cabela's 1k|Capital One QS1 3.4k|
|Sony Card 3.5k|
Message 10 of 10
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.