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Secured cards after bankruptcy

Valued Contributor

Secured cards after bankruptcy

Hello all. I’m filing Chapter 7 soon and will hopefully be discharged completely before June. I wanted to know if anybody had any knowledge about good, nonpredatory secured cards I could apply for after bankruptcy. The “Bankruptcy friendly” thread is a bit cluttered. I’m including the following banks:
BofA
Capital One
Citi
Chase
Discover
NCSECU
PayPal Credit
I bank with Wells Fargo and M&T. I know WF has a secured card that graduates, so I may talk to a banker after discharge and discuss my options. I did want just two cards to build with until the bankruptcy falls off. I owe Capital One a good bit of money, so not sure if I’d even get approved for their secured
Amex Green| Capital One Quiksilver $21.5K| Marriott Rewards $7K| Spark Cash Select $6K| Citi Platinum Select AAdvantage $6.4K| Citi Double Cash $6K| Chase Freedom $5K| NCSECU $5K| Discover IT $2.9K| Citi Forward $2.9K|
Message 1 of 19
18 REPLIES
Established Contributor

Re: Secured cards after bankruptcy

Your including some of the major banks, some who have very long memories about BK.

I would take that money you wanted to open the secured card with and try to pay make payments on atleast one of those cards to try to get current and see if you can keep it
FICO 8 Scores as of 05/2018
TU - 688
EX-755
EQ- 686

Cards:
US Bank Altitude Reserve-5K
Amex Premier Rewards Gold- NPSL
Chase CSP -6.5K AU
US Bank FlexPerks Travel Rewards Visa - 6K
Amex Delta Gold -2K
Amex Delta -22K AU
BoA Travel Rewards 6k
Discover IT $600
Message 2 of 19
Valued Contributor

Re: Secured cards after bankruptcy

Not an option, they’re all closed. Also not a good thing to do right before filing.
Amex Green| Capital One Quiksilver $21.5K| Marriott Rewards $7K| Spark Cash Select $6K| Citi Platinum Select AAdvantage $6.4K| Citi Double Cash $6K| Chase Freedom $5K| NCSECU $5K| Discover IT $2.9K| Citi Forward $2.9K|
Message 3 of 19
Community Leader
Established Contributor

Re: Secured cards after bankruptcy

@Icy, congrats on geting the ball rolling on your BK. There is nothing sweeter than the sound of silence when the phone stops ringing off the hook. 

 

I just wrapped up the second year of my rebuild after my Chapter 7 discharge in November of 2015. I know what you mean about predatory cards, as I started to rebuild with a Credit One card and my Cap One. I was irritated that I had to spend $80 to get a $500 CL on Credit One, but I have come to believe that in some cases (especially mine) it's possibly just the cost of doing business and keeping the card for one year isn't bad. That card along with my Cap One, gave me a huge kick start. I used them both several times a month and made multiple payments so they always posted at zero. I did this over and over for six months. 

 

I know you may not be able to get in with Cap One right away but I would say, consider a secured card at a local credit union as an option. While I was doing my first six months, I sent out emails to a zillion local credit unions, explaining that I had just been discharged from a Chapter 7 and told them that I was looking to build a relationship with a local credit union and I was wondering if they worked with people who  were rebuilding. A bunch never answered, some said no and a couple said they were happy to work with me. They both offered secured cards with no original HP and while I never took them up on the card offer, I went with one that was a game-changer for my rebuild.

 

You may find that there is a local CU that would love to help you get reestablished. Another amazing option is Navy Federal CU if you have ever served in the military OR have a family member who served. They are VERY BK friendly and have a great secured card option.

 

Your BK will be in the rear view mirror soon and you'll be on your way to a fresh start. I will look forward to following your journey and I wish you major success in the very near future.

Smiley Very Happy

 

Chapter 7: Discharged November 2015
Total Revolving Credit Lines 1 month post discharge: $2600
Total Revolving Credit Lines 1 Year post discharge (Nov. '16): $86K, Total with installment loans: $174K
Total Revolving Credit Lines 24 months post discharge (Nov '17): $207K, Total with installment loans: $350K
11/15 Fico 8: EQ-585, TU-550, EX- 551
01/18 Fico 8: EQ-707, TU-704, EX-691
Inquires: Next subject please.
Awards: World's VERY worst gardener x 1000! 'I'd like to thank the academy...'

Message 4 of 19
Frequent Contributor

Re: Secured cards after bankruptcy

OP, the very first post of the BK friendly thread has the info you need for the first several lenders you list. People have a lot of luck with Cap1 and Disco, but the others have a long memory (even if not IIB, they know you have a BK on record and want to see a long history of rebuild before they will accept you, again check that first post for more specific per lender).

As for NC and Paypal, that unfortunately will take some searching or hopefully someone will answer here. 

I see you IIB Cap1, even people who did so have some luck with them. You may want to get a few cycles of positive revolver history reporting first, and an installment loan (e.g. car loan, student loan, SSL). 

 

FYI - you get a FICO score bump for having three revolving TLs. There's no law saying you HAVE to get three, but just so that you know that. 

 

Best of luck OP.

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
Message 5 of 19
Community Leader
Super Contributor

Re: Secured cards after bankruptcy


wrote:

@Icy, congrats on geting the ball rolling on your BK. There is nothing sweeter than the sound of silence when the phone stops ringing off the hook. 

 

I just wrapped up the second year of my rebuild after my Chapter 7 discharge in November of 2015. I know what you mean about predatory cards, as I started to rebuild with a Credit One card and my Cap One. I was irritated that I had to spend $80 to get a $500 CL on Credit One, but I have come to believe that in some cases (especially mine) it's possibly just the cost of doing business and keeping the card for one year isn't bad. That card along with my Cap One, gave me a huge kick start. I used them both several times a month and made multiple payments so they always posted at zero. I did this over and over for six months. 

 

I know you may not be able to get in with Cap One right away but I would say, consider a secured card at a local credit union as an option. While I was doing my first six months, I sent out emails to a zillion local credit unions, explaining that I had just been discharged from a Chapter 7 and told them that I was looking to build a relationship with a local credit union and I was wondering if they worked with people who  were rebuilding. A bunch never answered, some said no and a couple said they were happy to work with me. They both offered secured cards with no original HP and while I never took them up on the card offer, I went with one that was a game-changer for my rebuild.

 

You may find that there is a local CU that would love to help you get reestablished. Another amazing option is Navy Federal CU if you have ever served in the military OR have a family member who served. They are VERY BK friendly and have a great secured card option.

 

Your BK will be in the rear view mirror soon and you'll be on your way to a fresh start. I will look forward to following your journey and I wish you major success in the very near future.

Smiley Very Happy

 

Chapter 7: Discharged November 2015
Total Revolving Credit Lines 1 month post discharge: $2600
Total Revolving Credit Lines 1 Year post discharge (Nov. '16): $86K, Total with installment loans: $174K
Total Revolving Credit Lines 24 months post discharge (Nov '17): $207K, Total with installment loans: $350K
11/15 Fico 8: EQ-585, TU-550, EX- 551
01/18 Fico 8: EQ-707, TU-704, EX-691
Inquires: Next subject please.
Awards: World's VERY worst gardener x 1000! 'I'd like to thank the academy...'


Dude...That is bright blue! Seriously, any chance we can tone that down a little LOL? I couldnt even read it,  I had to look away, my eyes crossed, LOL.Smiley Wink

(BK7 d/c-08/2013/FICO-400's) ~ Current scores....Your guess is as good as mine! ???
Scores being held down by tons of INQ/New acts Smiley Wink
Message 6 of 19
Community Leader
Established Contributor

Re: Secured cards after bankruptcy

@pizza, hopefully that's better! Sorry about that, doesn't look so bright on my phone!

Have a good week ahead!!

Smiley Very Happy

Message 7 of 19
Community Leader
Super Contributor

Re: Secured cards after bankruptcy


wrote:

@pizza, hopefully that's better! Sorry about that, doesn't look so bright on my phone!

Have a good week ahead!!

Smiley Very Happy


Ahhhh, thats WAY better to my old eyes, LOLOL... thank you sweetpea! Smiley Happy

(BK7 d/c-08/2013/FICO-400's) ~ Current scores....Your guess is as good as mine! ???
Scores being held down by tons of INQ/New acts Smiley Wink
Message 8 of 19
Regular Contributor

Re: Secured cards after bankruptcy

Just a heads up that I've heard Wells Fargo will freeze your bank account when you file.  My attorney told me if I had any money there to get it out before I filed.  Since you have a credit card with them, they WILL find out you filed.

Message 9 of 19
Established Member

Re: Secured cards after bankruptcy

I bank with Wells Fargo and they didn't freeze my account when I filed. I had no issues with them at all. I also opened a secured card with them about a month after discharge. My discharge was this past summer.
Message 10 of 19