Citi Secured Card denial with BK7

ScottsdaleDad · ‎04-24-2018

I applied for the Citi Secured Card on April 10th, and received the 7-10 day message. After not hearing anything, I called in today and was told I was declined due to my BK7. I tried to recon with a supervisor, but she told me the decision would stand because my BK was less than 2 years old. I guess I misunderstood, but I thought the card application said 2 years after filing date (my BK was filed in 12/15) not discharge date (it was discharged in 5/16).

I just wanted to update everyone in case this wasn't clear to others.

creditguy · ‎04-25-2018

I can see where the confusion would come from. I pasted the section regarding BK from Citi's website and it doesn't really make clear if it's two years from filing or discharge, however for future reference it is always safe to assume anything is from the discharge date and not the filing date. Sorry you had to waste your time and a HP on the app, it would be nice if they could just make it a little clearer to avoid confusion.

To receive a Citi® Secured Mastercard® you must meet our credit qualification criteria for this card, which includes our review of your income and your debt. If you are approved, your credit limit will be equal to the amount of your security deposit. You must not have any bankruptcy history within the last two years.

UncleB · ‎04-25-2018

@creditguy wrote:

I can see where the confusion would come from. I pasted the section regarding BK from Citi's website and it doesn't really make clear if it's two years from filing or discharge, however for future reference it is always safe to assume anything is from the discharge date and not the filing date. Sorry you had to waste your time and a HP on the app, it would be nice if they could just make it a little clearer to avoid confusion.

To receive a Citi® Secured Mastercard® you must meet our credit qualification criteria for this card, which includes our review of your income and your debt. If you are approved, your credit limit will be equal to the amount of your security deposit. You must not have any bankruptcy history within the last two years.

+1

Having gone through this personally years ago, I learned early on to assume that whenever a lender states "x years after bankruptcy" they usually mean after it was completed (discharged), not when it was started (filed).

In this case Citi's fine print does specify 'bankruptcy history', which would include the discharge, although I agree that it should have been stated more clearly.

I'm sorry our OP had to go through this, but I appreciate his sharing with us here and reminding us that with Citi it's post-discharge.

CH-7-Mission-Accomplished · ‎04-25-2018

They may or may not have approved you two years after discharge. I applied at three years post-discharge and they denied me for bankruptcy. I did a recon and still no go. I had several high limit decent cards but there was something they didn't like about me and my file. I did get in last year for $1000 at nearly four years post.

So when they don't want to approve you they can always toss out the BK 7 as a reason. They do manually underwrite these secured card apps.

pizza1 · ‎04-25-2018

OP...

I went thru this same scenario a few years ago. Their app didn't state a specific time (file date vs DC date)...just no BK within the "last 2 yrs".

Like you...applied...declined. Im not one who takes NO on the first try, so I decided to skip the middle man, and went right to the EO. I stated their nonspecific guidelines policy regarding secured card and BK, and emailed screen shots etc...

My BK File date was 5/15/13...was approved for their secured card on 6/27/16 after weeks of back and forth. They were also IIB. I also closed my card a year later because Im too impatient to wait out the 18 mo, LOL.

If you do wait it out, and they graduate you....the card turns into the Diamond Preferred which is a legacy card. At that point you could PC it to the DC if you wanted. That is if it graduates.

Good luck to you.

ScottsdaleDad · ‎04-25-2018

This is all good information. I am impatient too. The Costco card is the one I wanted for gas and travel, until I was turned down for the secured card. The approval guidelines are kind of rediculous to me given my current profile and the fact it's a secured card. I have some good cards and limits, so I've decided to give my business to lenders who gave me a chance after my bk. I have the PenFed Power Cash card and Capital One Savor, and they fill most of my main categories, so I'll be content with what I have and garden for awhile. Plus, I don't want to wait a year to redeem rewards. I like the redemptions on my current cards.