When to apply

[msml_2020]

My Chap 7 BK was discharged on 11/14. I’ve been reading the forums, and I know I need to open 3 CC’s to rebuild. I have a car loan, and a student loan that is in deferment. The car loan is reporting 2 months of satisfactory payments. I’ve gone over all three reports, and everything has been updated to IIB. Scores are in the mid 500’s across the board. Here’s a list of who I burned:

Cap One
Credit One
Synchrony (store branded cards, no major cards)
Comenity (same as Synchrony)
Target

I’ve checked the pre-qualify sites for Disco, Cap One, Credit One, Merrick, Kohl’s, and Indigo. No one will touch me. My current CU is also a no-go. I have my mom’s DD214 from the Navy, so I plan to talk to NFCU about opening an account around the first of the year, but I figure it will be awhile before they will consider me for their secured card. I’m continually amazed at the success of people who are getting approved right after DC, some with scores similar to or even lower than mine. I’ve been with the same company for several years, and my salary is about $55k annually. Any advice on how I should proceed?

[FireMedic1]

Welcome @msml_2020 You can start with OpenSky no HP to get started. No one matches after BK. Some get things right away. Some have a hard time. Might be it hasnt updated to DC on your reports as of yet as the final outcome of the case.

[Anonymous]

@msml_2020 - Congratulations to new beginnings.  Does your credit report show your discharge date?

[calyx]

Welcome to the forums, @msml_2020 

I second the Opensky card - I had it when I started building as well.    They don't do a hard pull, only a soft pull to verify identity, and their credit limits are whatever you wish to secure with them.   You don't have to get three cards at once - some people have pretty good luck getting one every 3 or 6 months as their scores improve.  They only charge an annual fee, and I don't consider them predatory.

Just getting one revolver reporting will help you get your scores kickstarted.

You might want to check with Citibank for a secured card as well - theirs has no annual fee and can graduate (if you go secured, I always push for those that will graduate and can be product changed later for better cards, so you can keep your history).    Navy Fed also has a secured CC that will graduate.      I think with a BK, secured might be the safest/best way to go.     Try to stay away from predatory lenders that charge fees or companies where you pay for a credit line if you buy overpriced items through them.

[msml_2020]

@Justme79 - yes, all three CRA's are showing my DC date of 11/14.  I had one account on Transunion still showing charged off for Credit One, with a balance of $1169, so I disputed it because it was most definitely IIB.  To my surprise, TU removed it completely.

I received an offer today in the mail from Aspire, issued by The Bank of Missouri.  Here are the details:

Initial CL $400 (I suspect I could be approved for a smaller amount, and that this is the max)

APR 36%

Annual Fee $99 (They take this off the top, reducing the available CL from the get-go)

Monthly Fee $8.95 per month, but the fee isn't billed for the first 12 months that the account is open

My question about this offer is this - If I take it, pay the $99 in full when the statement drops, charge like $20 a month on it and PIF, then close the account right before the one year mark, would this be a good strategy, or should I stick with a secured like Open Sky?  The fine print says they do report to all three CRA's, although I did read another thread from two others who advised that they don't report for 3-4 billing cycles.

As for the Citi Secured, I looked at their website, and it stated that you can't have a bankruptcy in the two years prior to applying.

[FireMedic1]

There are some CC companies that take a long time to report. Reporting over paying almost $300 a year for a secured card. Thats easy. OpenSky. Thats crazy paying yearly and add monthly fees. There are other secured cards that only do a yearly fee. Or one time fee.

[Anonymous]

@msml_2020 - Try TD Bank

[Anonymous]

Hi I’m new here and saw your post. I’m 2.5 mo post discharge. I started with Credit one and Milestone a mo prior to discharge to build my file up. I was surprised but they approved me before discharge date. I knew I had to buy a car as soon as I got the DC. It helped up my score from the low 5’s to low 6’s. Soon as I was approved for a car and carried low balances the score kept improving. My goal was to get Disco secured. I kept trying via the pre qual app until it finally approved me last week. I’m at (Experian)630 now and climbing. Try to get a secured card first like some others have stated. A lot of the offers coming in the mail are really awful high opening/ maintenance fees. Sometimes you do have to pay the price for BK but of you can avoid it really try. Good luck. 👍🏼

[FireMedic1]

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@Anonymous wrote:
Hi I’m new here and saw your post. I’m 2.5 mo post discharge. I started with Credit one and Milestone a mo prior to discharge to build my file up. I was surprised but they approved me before discharge date. I knew I had to buy a car as soon as I got the DC. It helped up my score from the low 5’s to low 6’s. Soon as I was approved for a car and carried low balances the score kept improving. My goal was to get Disco secured. I kept trying via the pre qual app until it finally approved me last week. I’m at (Experian)630 now and climbing. Try to get a secured card first like some others have stated. A lot of the offers coming in the mail are really awful high opening/ maintenance fees. Sometimes you do have to pay the price for BK but of you can avoid it really try. Good luck. 👍🏼

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Good advise and congrats on your new ride and scores @Anonymous