Rejected by Capital One Secured?

[Anonymous]

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? 

[BmoreBull]

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. 

[blindambition]

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.

[JustJay119]

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.

[Anonymous]

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.

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. 

[NotRalphKramden]

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@Anonymous 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? 

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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

TLR

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.

[Anonymous]

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@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. 

[Anonymous]

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!