Approvals with a BK7

[Swordfish20]

Looking for advice/recommendations.  I had a BK7 in 2013.  Since then my Fico8 went from 597 to 764.  I had four credit cards - two Capital One, a USAA, and a Barclaycard.  Recently the Barclaycard and one of the Capital One cards closed without notice due to inactivty.  Never heard of that happening but it did and my scores immediately dropped around 20 points on all three CRs (Equifax 24 pts!).  The two cards totalled $7k in credit.  Both remaining cards have limit of $20k each.  No other negatives on CRs except the BK.  Only 1% credit utilization.

I applied for a Chase Sapphire Preferred yesterday to increase credit availability, and because I heard it was a greaat card, only to discover that my BK automatically disqualified me.  I called the recon number, no luck with the BK.  It cost me a hard pull and 2 points.

First, will it help my score to get another card and increase my credit availability again?  Second, any recommendations for cards for with higher credit limits that won't deny because of a BK?

[recoveringfrombk7]

Cards should get used once per 6 months to avoid closure.  In the current economy/pandemic I'd probably aim for every 4 months to be safe.

Need to know who you burned in the BK to make recommendations.  Are you a member of a credit union?  They tend to be generous with limits even for post-BK.

[Swordfish20]

I burned AmX Gold, AmX Delta Skymiles, Capital One, and BBT.  Capital One gave me another card with $20k credit after three years.  Got the USAA as an authorized user on my mother's account and at her death they switched it over to me.

I am a member of Pentagon Federal.

Strangely enough I show preapproved for an AmX card but I don't take that seriously since I am most likely black listed.  AmX would not increase my credit availability anyway.

Thanks for your help.

[Swordfish20]

FYI my Fico 9 scores are EQ825, TU820, EX809 if that helps.  Just don't want to run into the auto BK denial again. 

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[recoveringfrombk7]

If you burned AMEX the word on the street is they'll never forget unless you repay in full.  They sometimes offer a way back in with Optima, but it can be hit or miss and right now things are a bit weird all around with the pandemic.

Are you looking for specific rewards?

I think Discover, potentially Citi, PenFed are all good options.  

Some of the prequal tools are down because lenders are using stricter criteria at the moment.  I think Discover might still be up, but I'm not sure what you'll see for a SL.  I think PenFed might be your best limit wise.

[Guyatthebeach]

Swordfish20,

I had my chapter 7 bankruptcy discharged in 2012, so I can relate. Chase will decline you due to the bankruptcy. I had got delined last year from Chase and the agent I spoke to said I'd be declined until my bankruptcy falls off my CR.  There are others on the forum that have been declined from Chase with BK's. 

I would look for local and regional banks that are offering preapprovals for cards, like BB&T and Regions bank.  If your member of Sam's Club or Costco, take a look at their cards. I would also space out applications ever 6 moths to a year.  I do believe you will get those points back just by letting the accounts age and keeping utilitization low. 

Guyatthebeach

[Swordfish20]

Thanks for the advice.  Just did the preapprovals for Discover and BBT (soft pulls).  Discover only wants to give me a prepaid card (nope) and BBT preapproved all three of their cards.  Also just joined NFCU since my father was retired Army.  Are their cards a) worth it and b) difficult to get?

[Guyatthebeach]

My Discover preapproval started with a SP but turned into a HP. I did get a Discover Card with $11k credit line. 

The BB&T cards were all SP's. 

Navy Federal is an excellent CU. I didn't join until 4 years after my bankruptcy. Their cards are very easy to get. I have the cash rewards and the Flagship Visa. I actually use Navy Federal to take advantage of their CD rates.  

Guyatthebeach

[recoveringfrombk7]

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@Swordfish20 wrote:

Thanks for the advice.  Just did the preapprovals for Discover and BBT (soft pulls).  Discover only wants to give me a prepaid card (nope) and BBT preapproved all three of their cards.  Also just joined NFCU since my father was retired Army.  Are their cards a) worth it and b) difficult to get?

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Definitely go NFCU.  Your first card may have a lowish limit, but your second at 91 days/3 statements will be quite high.  Plus, they give good CLIs.

My BK is fresher than yours and my scores lower.  My first card was $3900.  At 91/3, I got approved for a second card at 12.5k and my first card went up to 9900.  I would suggest not applying for Flagship first.  There is no SUB this quarter (normally $500 value) and the minimum approval is for a 5k SL which is atypical for the first card with them.

They are awesome customer service wise and super about rebuilding post BK.  I do all of my checking and DD with them and also some certificates.  They don't have good savings rates, so I use other CUs for that. 

Welcome to the Navy fam!!

[Anonymous]

Sorry to hear that.   I have a Bk Chpt 13 6 1/2 year ago.  3 years after my BK i got 2 Cap 1 cards, Navy Fed cards, got my first AMEX last year and this year I picked up 4 Amex cards, 2 BB&T cards, card from BBVA and a card from DCU.   Rooms to Go card if that counts for anything.  Got approved for a Pen FED card but I didn't like the CL so i decided to not get it.  Have you tried calling to see if you can get them reopened?

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@Swordfish20 wrote:

Looking for advice/recommendations.  I had a BK7 in 2013.  Since then my Fico8 went from 597 to 764.  I had four credit cards - two Capital One, a USAA, and a Barclaycard.  Recently the Barclaycard and one of the Capital One cards closed without notice due to inactivty.  Never heard of that happening but it did and my scores immediately dropped around 20 points on all three CRs (Equifax 24 pts!).  The two cards totalled $7k in credit.  Both remaining cards have limit of $20k each.  No other negatives on CRs except the BK.  Only 1% credit utilization.

I applied for a Chase Sapphire Preferred yesterday to increase credit availability, and because I heard it was a greaat card, only to discover that my BK automatically disqualified me.  I called the recon number, no luck with the BK.  It cost me a hard pull and 2 points.

First, will it help my score to get another card and increase my credit availability again?  Second, any recommendations for cards for with higher credit limits that won't deny because of a BK?

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