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Rejected by Capital One Secured?

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Member

Rejected by Capital One Secured?

I probably should have known better, but being fresh out of Chapter 7 Bankruptcy, I decided to start rebuilding my credit by applying for a Capital One Secured card.

 

An ex who I keep in contact with, from years ago, who went through Chapter 7 last year, told me Capital One gave him a card right away.

 

In my bankruptcy was about $100,000 in total debts, but about $40,000 in credit cards, and half of that was to Capital One, so I guess I'm not completely shocked that I got denied for a Secured Mastercard. (Even though it was no risk to the bank.)

 

Do credit card companies put you on a "ban" list after you file bankruptcy against them?

 

Anyway, my next stop was to Discover, which actually approved me for theirs.

 

I laughed because even when my FICO was 806, I couldn't get a Discover. I had cards from many other banks but American Express and Discover would always say no. Now Discover gives me one with a fresh bankruptcy.

 

What panicked me into filing bankruptcy is that during the troubles last year, the finance company took my car. My (different, most recent) ex, who was a co-signer, paid everything up including the repo fees, and the company never called it a repo, but thanks to the Coronavirus, he lost his job and I had started getting nasty letters from the finance people again. I had heard that if you lose the car in bankruptcy, then they can't ever report it as a repo again, so I abandoned it to my ex and if he loses it now oh well. Bankruptcy beats bankruptcy and a repo. 

 

My FICO when I re-emerged was 565, which was actually an improvement vs. everything hitting the fan and charging off, which left me around 490.

 

I read people saying that just getting approved for the secured card brought their FICO scores up 50-70 points. True? 

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Established Contributor

Re: Rejected by Capital One Secured?

Going from having no revolving accounts to one will give you a few points. Remember to let a small amount (5-6$) report on the statement. You might have been better posting in the rebuild section. There are plent of knowledgeable people there. Good luck with your rebuild. 



Starting Fico Scores:November 2019

Current Fico Scores: September 2, 2020
Goal Scores: 700 across all three
Message 2 of 8
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Community Leader
Valued Contributor

Re: Rejected by Capital One Secured?

Congrats on your Disco approval!!! Cap One is one of the lenders who doesn't hold grudges long, but you burned them for quite a bit. I'd not apply with them for a couple years at least. Yes, most major lenders have memory and blacklists. How long depends on lender and if they were or weren't included in BK.

If it takes me longer to read your signature, then it does to finish my Taco Bell burrito, I think it’s safe to say , your signature needs an edit.
Message 3 of 8
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New Contributor

Re: Rejected by Capital One Secured?

Hey, I was in a similar situation as you. No BK but I had a charge off from capital one. I was denied for a secured card with no Hard Pull meaning I was blacklisted. What helped me get off was becoming an authorized user on a capital one credit belonging to my mom and another belonging to my fiancé. After that I was pre approved, I apped and was approved. Maybe if you can find some to add you as an AU, it may help.

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Message 4 of 8
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Member

Re: Rejected by Capital One Secured?

Yeah, my husband added my as an authorized user to his Capital One Walmart Mastercard and it just hasn't shown up on my credit report yet.

 

I figured that having an account of my own would reflect more positively (or at least give me 2 revolving accounts instead of 1).

 

I briefly considered Credit One thinking that maybe that's the best I could do, but when I saw the terms ($99 annual fee _and_ a deposit) I laughed and said "Hard pass." and kept looking.

 

My mom was surprised when I told her the Discover It Secured actually has rewards points. Smiley Happy

 

I'm considering upping the deposit to enough of a "credit line" to pay my rent and harvest the rewards points. That could add up fast enough to cover the deposit after a while just on its own. They said they would automatically consider whether I still needed the deposit after 8 months and every month after that and refund it if either that happens, or if I pay off the card and close it. 

Message 5 of 8
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Re: Rejected by Capital One Secured?


@BaronHK wrote:

I probably should have known better, but being fresh out of Chapter 7 Bankruptcy, I decided to start rebuilding my credit by applying for a Capital One Secured card.

 

An ex who I keep in contact with, from years ago, who went through Chapter 7 last year, told me Capital One gave him a card right away.

 

In my bankruptcy was about $100,000 in total debts, but about $40,000 in credit cards, and half of that was to Capital One, so I guess I'm not completely shocked that I got denied for a Secured Mastercard. (Even though it was no risk to the bank.)

 

Do credit card companies put you on a "ban" list after you file bankruptcy against them?

 

Anyway, my next stop was to Discover, which actually approved me for theirs.

 

I laughed because even when my FICO was 806, I couldn't get a Discover. I had cards from many other banks but American Express and Discover would always say no. Now Discover gives me one with a fresh bankruptcy.

 

What panicked me into filing bankruptcy is that during the troubles last year, the finance company took my car. My (different, most recent) ex, who was a co-signer, paid everything up including the repo fees, and the company never called it a repo, but thanks to the Coronavirus, he lost his job and I had started getting nasty letters from the finance people again. I had heard that if you lose the car in bankruptcy, then they can't ever report it as a repo again, so I abandoned it to my ex and if he loses it now oh well. Bankruptcy beats bankruptcy and a repo. 

 

My FICO when I re-emerged was 565, which was actually an improvement vs. everything hitting the fan and charging off, which left me around 490.

 

I read people saying that just getting approved for the secured card brought their FICO scores up 50-70 points. True? 


Filed BK 6/19, DC 9/19 

Disco Secured SL$200 10/19, graduated 5/20 CL$1500

Cap One Platinum SL$1500 08/20

1st month FICO8 EX rose 33

 

TLSmiley Very HappyR

Capital One Application Terms states that an applicant is ineligible if they have had a Cap One card charged off within the past year. In my case they allowed me to apply 13 months after filing BK, 1 month before 1st anniversary of DC. Before then, application denied with no pull. After the 13 months, pre-qualed for Plat and QS1. Accepted Plat Aug 1 with SL $1000.

I qualified for Discover secured 1 month after DC. SL $200. Cycled it 4 times a month for 7 months and graduated to CL$1500. Had card 11 months now.

First month after DC with only Discover reporting, EXscore8 went from 556 to 589.

Good luck.

 


Credit Cards

Installment Loans


Re-Beginning Scores 10/19

Current Scores 9/20


Entered Garden September 16, 2020
Gardening until November 1, 2021






New Accounts 2/6, 7/12, 7/24
Message 6 of 8
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Member

Re: Rejected by Capital One Secured?


@NotRalphKramden 

Thanks for the information. The Discover Card guy wasn't real helpful when I asked if they usually went ahead and upgraded it after 8 months and returned the deposit. So I was wondering if the Secured Card was the right move at all.

 

I also just went with the $200 for now. It's gas or a restaurant bill now and then. Just enough to show I'm paying it.

 

I'm glad that Capital One didn't bother to pull my credit. 2 hard pulls would have hurt some, and gotten me nowhere. 

 

I'm actually surprised it's relatively painless and quick to spring back after a bankruptcy. They make this sound way worse than what it ends up being. Like they're going to brand you "The Bankrupt" with a literal branding iron and nobody will ever trust you again.

 

It just is what it is. 

Message 7 of 8
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Regular Contributor

Re: Rejected by Capital One Secured?

I did include capital one in my ch7 bk in 2018, and i've been trying every few months or so since then on their prequal website to see if I get any offers. They never give me one. It's been a while now since I tried again, but at this point i'm not really interested in any of their cards anyway.

 

I do have a Discover secured as well that I opened after my bk.. it's been open for 22 months and still secured with the $200 limit. Not sure why, i've never been late on it and always paid in full when I used it (it sits in my sock drawer now) That doesn't mean this will be your experience. I've read a lot of stories on here from others and it seems that for most people they do graduate even with a bk. So I would say it was the right move and probably one of the best secured cards to choose from (If you have a way to get into NFCU they have a great secured card also)

 

It sounds like you're off to a great start though. Good luck on your rebuild!



NFCU Cash Rewards $18,500
NFCU More Rewards Amex $6,500
Merrick DYL $1,400
Discover Secured $200
NFCU CLOC $500
Message 8 of 8
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