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A few questions for the experts

Rowenofpts
New Member

A few questions for the experts

Hey guys,

 

Long story short, I had a chapter 7 bankruptcy that was discharged in January 2020. The following cards were discharged:

 

Chase freedom: 5k

Chase Amazon Prime VISA:  3k

Wells Fargo VISA: 25k

Wells Fargo Loan: 17k

AMEX: 3,500

CITI: 5k

Discover: 9,500

 

Since Bk7, I have acquired a Credit One card (1 month after BK), and a Capitol One card (6 months after BK). 6 more months have passed now, and I am wondering what my next move should be.

 

What I REALLY want, is that Amazon Prime VISA back, because I spend a lot on Amazon and Whole Foods, and that would put money back in my pocket. However, this card is owned by Chase, which I had burned in the BK. Is this card completely off the table, even with a good credit score? If so, for how long?

 

I know you guys always say Chase is stingy with post-BK, but since it’s Amazon and not a card directly with them, does that make a difference? Should I chance this?

 

My other option (and only because they’re basically guaranteeing that I’ll get approved) is ANOTHER Capital One card, which I just got a pre-approval offer for today because they say I’ve had such great history so far. This would be an incredibly safe route since I know I’ll get approved, plus Ive had a great experience with them so far. I could continue building/gardening for the next half-year so that I can make a riskier move 6 months from now. My question to this is, is having 2 credit cards under the same company just as beneficial to FICO/credit score as having cards reported from two separate companies? Would this be a waste of an inquiry? Should I go with another company?

 

If you guys could help me answer these two questions and also maybe give me some advice on where you think I should go from here, it would be much appreciated.


Goal: to raise credit score

 

Current scores:

TU: 682

EQ: 685

EXP: 678

Message 1 of 7
6 REPLIES 6
FinStar
Moderator

Re: A few questions for the experts

Hi @Rowenofpts and welcome to the forums.

 

Unfortunately, Chase will be out of the picture for >10 years per the IIB.  This will likely be the scenario for the others as well, except for maybe Discover or Citi which can yield different outcomes post-BK for a variety of different profiles.

 

There's an alternative option such as the Amazon Prime store card through Synchrony Bank. If approved, you can still receive 0% APR financing on select purchases and 5% back on Amazon.  I believe you can also purchase Whole Foods GCs.

Message 2 of 7
sarge12
Senior Contributor

Re: A few questions for the experts


@Rowenofpts wrote:

Hey guys,

 

Long story short, I had a chapter 7 bankruptcy that was discharged in January 2020. The following cards were discharged:

 

Chase freedom: 5k

Chase Amazon Prime VISA:  3k

Wells Fargo VISA: 25k

Wells Fargo Loan: 17k

AMEX: 3,500

CITI: 5k

Discover: 9,500

 

Since Bk7, I have acquired a Credit One card (1 month after BK), and a Capitol One card (6 months after BK). 6 more months have passed now, and I am wondering what my next move should be.

 

What I REALLY want, is that Amazon Prime VISA back, because I spend a lot on Amazon and Whole Foods, and that would put money back in my pocket. However, this card is owned by Chase, which I had burned in the BK. Is this card completely off the table, even with a good credit score? If so, for how long?

 

I know you guys always say Chase is stingy with post-BK, but since it’s Amazon and not a card directly with them, does that make a difference? Should I chance this?

 

My other option (and only because they’re basically guaranteeing that I’ll get approved) is ANOTHER Capital One card, which I just got a pre-approval offer for today because they say I’ve had such great history so far. This would be an incredibly safe route since I know I’ll get approved, plus Ive had a great experience with them so far. I could continue building/gardening for the next half-year so that I can make a riskier move 6 months from now. My question to this is, is having 2 credit cards under the same company just as beneficial to FICO/credit score as having cards reported from two separate companies? Would this be a waste of an inquiry? Should I go with another company?

 

If you guys could help me answer these two questions and also maybe give me some advice on where you think I should go from here, it would be much appreciated.

 

Current scores:

TU: 682

EQ: 685

EXP: 678


The Chase Amazon Prime card is still a Chase card, and subject to the same over-writing of equally tiered Chase cards. If anything the card is harder to get than such cards as the Chase Freedom. That seems to be true of all co-branded cards with Banks, with the possible exception of the Citi Costco card. Since it also acts as the Costco membership card, they would likely be slower to close that one due to non-use, as long as membership is maintained. I am not even sure of that, but since I actually paid the membership fees with another card last year, I may soon find out.

TU fico08=844 09/16/21
EX fico08=833 09/16/21
EQ fico09=829 09/16/21
EX fico09=823 09/16/21
EQ fico bankcard08=864 09/16/21
TU Fico Bankcard 08=879 09/16/21
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 3 of 7
Anonymous
Not applicable

Re: A few questions for the experts

OP, I'm not sure what your goal(s) are.  You first mentioned wanting the Amazon card again due to your Amazon spend, which makes sense.  After that you suggest another Capital One card more or less just because you know you can get it and ask if you should try for a different card.  This to me sounds like you're trying to get a card just to get a card, which is fine too if your goal is in fact just trying to increase your number of open revolvers.  I guess my point is it would be a good idea to clarify this in order to garner the most appropriate responses from members.

Message 4 of 7
Aim_High
Senior Contributor

Re: A few questions for the experts

Welcome to My Fico Forums, @Rowenofpts.

 

Wow, looks like you burned most of the "big boys" in your BK and agree with FinStar that they are off the table for a very long time. Smiley Sad  I wouldn't even waste my time with any "IIB" lender right now, including Chase.

 

The Synchrony Amazon card is a great suggestion.  Retail/store cards in general would be one more way to add new revolving accounts.  However, make sure to add useful ones that you will naturally use and to keep them as a minor part of your overall lineup. 

 

While rewards are great when you can get them, the more important thing for you to focus on now is that goal of rebuilding your profile.  It's fine to have multiple cards with one lender and two cards with one bank helps your FICO just as well as-if they were with different banks.   Remember that lender diversity is a smart goal, and putting too many eggs into one credit basket can be very risky if adverse action occurs.  Just read recent threads on the forums of many members who lost huge credit limits with Synchrony as well as some other lenders, and some of those members had not diversified across other banks.  Ouch.  That can really hurt.

 

The largest national banks in terms of assets that you DIDN'T burn would be Bank of America and US Bank.  You're probably not ready to apply for either of those now, but as you build your profile those would be the safest large national banks to go to first.  Also, Truist is a new bank that is a merger of BB&T and Suntrust, and will probably be a large player going forward. 

 

I would start with that additional Capital One card.  Over time, I would add some good cards from credit unions. If you are eligible for membership (either by direct military service or through service of a family member including parents, grandparents, or siblings,)  Navy Federal CU might be a good recommendation.   Or just find a good credit union local to you, open some deposit accounts, and apply for credit.  

 

Since you burned most of the largest national banks, another option would be to try to get a foot-in-the-door with more regional banks.  Which ones would depend on your location.  Some names that issue credit cards might include PNC, Regions, BBVA, Key, TD, Fifth-Third, BMO Harris, Union, M&T, Bank of the West, Huntington National, UMB, or FNBO.  In some cases, the card products might not be as attractive as some of the larger lenders but building your credit is most important.

 

While installment debt is factored differently than revolving credit card debt, it will help your profile if you have an installment loan such as an auto loan in good status or repaid. 

 

There is a "rebuilder" forum which offers much better support and information than the credit card forum.  This is a good resource for you.    Go to:  https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

 

Good luck with the process! 



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 28 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 5 of 7
longtimelurker
Mega Contributor

Re: A few questions for the experts

If the main goal is to start getting good rewards on Amazon and Whole Foods, then as suggested, going for the Sync Amazon card is the thing to do (and, as @FinStar says, get WholeFoods gift cards from Amazon, they sell them in various denominations from $25-$200).   But to deal with the sensitivity of Sync, don't apply for many (any?) cards shortly after.    So if you want more cards, perhaps including the Cap One, decide which is the first priority!   If Amazon/WF spend is high, I would prioritize the Sync card and then wait.

Message 6 of 7
minski
Established Contributor

Re: A few questions for the experts

Affinity FCU has a visa sig card that gives 5% cash back on bookstores which includes Amazon up to $3500, and 5% on rotating categories, too. Also, 2% cash back on gas, restaurants, supermarkets, watch, listen and ride services. 1% all else. No AF or FTF
Message 7 of 7
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