Bank of America Partial Secured - Should I Apply?

[Anonymous]

Hi all. I've been following these boards for a couple of years and just decided to become a member. I don't really know where to start here, as this site is HUGE, so forgive my lengthy first post..

2008 - CH7 BK (due to fall off in the next month or two I suppose)

2010 - Student loans charged off for ~$9k

2011 - Repo w/ Santander

2012 - Santandar charged off for ~$11k (they just sold it to Cascade recently as reflected in their comments but Cascade hasn't added a collection record yet)

2014 - Medical collections out the wah-zoo (about 15 in all totalling ~$8k for broken leg w/ no insurance)

2015 - Another medical collection (ER visit w/ insurance, never received bill, went straight to collections.. still fighting) -- on a positive note: but got a Capital One Secured (750 on deposit, now 1050 but never graduated) and an auto loan (paid off in 2016)

2016 - Credit One Visa (SL 300, now 900) and another auto loan ($25k now $21.5k) and a recreational (motorcycle) loan ($10k now $7.5k)

2017 - Merrick Bank Visa (SL 750, now 1500), Credit One Mastercard (SL 800), Sync/Care Credit (SL 500), Sync/Amazon Prime (SL 200), Sync/Walmart (SL200), First National / Legacy (SL 600), Genesis / Kay Jewelers (SL 1500), and completed Student Loan rehab program and got all bad marks removed and new loans started

2018 - Comenity/Victoria's Secret (SL 350), Comenity/J Crew (SL 350)

Since 2015 when I opened the Capital One, I've had a 100% perfect payment history on all my credit cards, student loans, auto/rec loans, everything. My score is currently 657 on TU because my BK fell off a few months ago.. Experian/Equifax are around 590. I currently have $7950 in total for revolving credit lines, and my utilization is at 9%.

I desperately want some "real" credit cards, i.e. prime lenders.. big banks. I'm tired of these 26+% APRs and annual fees and other ridiculousness.

Bank of America just sent me an offer for the partially secured card. $500 SL for $99 deposit. I almost feel like $500 is a slap in the face considering it's hardly a bump from my store cards and lower than any one of my subprimes.. but I've read so many good things about these cards graduating with CLIs in ~6 months.

I've tried applying for BoA, Chase, Discover, and Capital One (unsecured) throughout the past year and got turned down by them all.. and I really want the Discover IT :-(

I'm wondering if I should apply for the regular Bank of America card first, and if that fails, THEN take their partially secured offer.. or if that would take away the offer that's on the table? Or should I just "garden" for 2 more months and wait for my BK to fall off completely? or just take the BOA partial secured now and hope for a Discover offer in 2 months (I've heard of that happening here too).

In any case, much love to you all. You've all helped me so much. I'm grateful for all your contributions.

[Anonymous]

Got too antsy and decided to pull the trigger.

Denied for BoA unsecured

Denied for BoA secured

.. got really disappointed and decided to go on a spree

Approved for Amex Delta Skymiles Gold SL $1000

Approved for Chase Freedom Unlimited SL $1000

Go figure.

P.S. CreditKarma: 657TU / 643EQ, Discover Credit Scorecard FICO 629 (Ex?)

[Anonymous]

Yeah, BoA hates me. Denied for their SECURED card. At the same time, I received a Discover Secured, NFCU Cash Rewards, PenFed Power Cash Rewards, AMEX PRG & Delta Skymiles. BoA is super conservative IMO, but screw them! Congrats on your approvals :-) 

[Anonymous]

Congrats!! You have met your current goal. When the cards with annual fees come up, cancel a month early. Then garden for a while. Let you cards grow for a year. Then you bankruptcy will be long gone. Good luck!

[Anonymous]

I'm sorry, but i have to be honest here...you're applying for way too much credit, and maybe credit companies that are crappy and you wont' even use..IMO. Why didnt you wait for Ch7 to fall of? it's just around the corner. You can call the agencies and actually get it removed now.

[Anonymous]

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@Anonymouswrote:
I'm sorry, but i have to be honest here...you're applying for way too much credit, and maybe credit companies that are crappy and you wont' even use..IMO. Why didnt you wait for Ch7 to fall of? it's just around the corner. You can call the agencies and actually get it removed now.

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Well, I probably should have signed up and started asking questions before the app spree. Had I done that, perhaps I would have gotten 100% approvals without that CH7. My logic was as follows:

1) I have a CH7 due to fall off next month -- I know this is going to give me a big boost because so many lenders cite it in their denials

2) I have 8 or so medical collections due to reach SoL next February -- I'm waiting for this because then I have bargaining power

3) I have a repo due to fall off next July -- I'm waiting for this so I can finally refi at a lower rate (currently 9.95%)

So, I figure:

1) apply now while I have the BK, and 6 months from now, in Aug/Sep, when I request CLIs from my big-name cards, they'll see a real nice improvement and grant me some nice CLIs.

2) 6 months later, my collections will be 5+ years, and all my INQ's from 2016 when I applied for my auto and recreational loans and 3 cards will have fallen off, I'll apply for another round of CLIs, and hope to be approved since that'll be a real nice improvement in my profile.. also, since the collections will then be 5+ years, they'll have lost some of their impact and raised my chances of securing some favorable settlements

and finally, 3) 6 months later, I'll hopefully have a real nice looking profile, be able to secure a real nice refi on my car and motorcycle, then hit up my cards for another CLI and dump all my subprime cards..

What do you think? Terrible 18 month plan? Good direction? I'm all ears!

[Meanmchine]

Hate to break it to you, but a near 10 year old BK still hanging around your reports has almost no inpact on your current situation. People here are flying high in their rebuilds with 3-5 year old BKs.  Yours is 10. There is a thread out there that shows you step by step how to get a 700+ score within 2 years of yout discharge date. I suggest looking for it. Id have done it for you but March Madness is on and my attention span is comprimised atm.

[Anonymous]

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@Meanmchinewrote:

Hate to break it to you, but a near 10 year old BK still hanging around your reports has almost no inpact on your current situation. People here are flying high in their rebuilds with 3-5 year old BKs.  Yours is 10. There is a thread out there that shows you step by step how to get a 700+ score within 2 years of yout discharge date. I suggest looking for it. Id have done it for you but March Madness is on and my attention span is comprimised atm.

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Every decline letter I get lists, at the top of the reasons why, serious delinquency / public record filed

Every card that has pulled TU (from which the BK has gracefully fallen) has approved me

[Meanmchine]

The problem is YOUR FILE. If you dont believe me, your TU report does not have your BK reporting yet your score is only 657. Whats holding it down. You cant blame the BK

[Anonymous]

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@Meanmchinewrote:

The problem is YOUR FILE. If you dont believe me, your TU report does not have your BK reporting yet your score is only 657. Whats holding it down. You cant blame the BK

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I believe you, I wasn't disputing that.. just explaining my theory as to why in 6 months from now I think my overall credit picture would be better without it there and why I figured applying for prime cards now rather than after it's off was a good idea. I'll definitely never claim to be right -- but, rather, uneducated and inexperienced if anything!