Could I get approved for an unsecured card with a charged off from 4yrs ago?

[Superduper2014]

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@Chrisla2077 wrote:

I have several charge-offs from 2009 and was just approved for 8 unsecureds

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Wow, that is fantastic! I guess I have to give it a shot again now then.. would you mind saying what your score is and some of the cards you got approved and how much? I am taking note !

[Ragelog]

I have a charge off that just turned 5 years old. So 2 more years until it is gone.

I have been approved for all the cards in my signature it has the when as well. My EQ08 score was as high as 690 and is now 660 due to the inquiries, average age etc.

So it is possible for sure. Takes patience a lender giving you a shot then others seem to follow.

[Chrisla2077]

I'm looking forward to  a Chase Freedom and AMEX BCE...next year. That's when all my charge-offs fall off.

[Superduper2014]

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@Chrisla2077 wrote:

I have several charge-offs from 2009 and was just approved for 8 unsecureds

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I can't imagine how one can get just approved for 8 credit cards without having great credit and even then wouldn't by the 3rd application the lender be worried you are getting too many cards in such a short period? Apparently credit is getting easier to get as of late? 

It would be great if you can share  how you did this and the credit limits and lenders that approved you. Thanks!

[Anonymous]

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@Superduper2014 wrote:

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@Chrisla2077 wrote:

I have several charge-offs from 2009 and was just approved for 8 unsecureds

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I can't imagine how one can get just approved for 8 credit cards without having great credit and even then wouldn't by the 3rd application the lender be worried you are getting too many cards in such a short period? Apparently credit is getting easier to get as of late? 

It would be great if you can share  how you did this and the credit limits and lenders that approved you. Thanks!

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Half of Chrislas cards are ones you can get with the shopping cart trick. While unsecured, they aren't nearly the same as a QS from Capital One or Simplicity from Citi

[Jamex]

With an unpaid C/O for 19,000 from 2010 showing (auto repo), as well as a paid C/O for $126 and a student loan account showing several 120-day lates from 2009, I have been approved for the following over the past year, in order of when I applied for them:

• Barclays Rewards (3/14 - Instapproved for 1K, reconned immediately to 3k, CLI after 6 mos to 5k)
• DCU Visa (6/14 - 5k)
• Amex Green (7/14 - NPSL)
• Amex EveryDay (7/14 - 1K)
• CapOne Venture (2/15 - 10K)
• CapOne Platinum Prestige (2/15 - 5K)

I've also been approved for a DCU auto loan refi, and a DCU personal loan (5k). I have been consistenly denied for a CLI on my Citi Dividend (which I've had since 2005) and was denied for a Citi ThankYou card I applied for after getting a pre-qual mailer with a specific APR. Citi has consistently cited my C/O as a reason they cannot offer me additional unsecured credit. 

My scores at time of application for all of these ranged from 670-685. Income 76k. Util at time of app ranged from a low of 8% (when I apped for Barclays) to a high of 39% (when I applied for the two CapOne cards)

So, it's definitely possible, but this is just one person's experience and YMMV. I think it helps my AAoA is over 5 years (even after adding all of the above - thanks to Amex backdating). I also spaced out the apps and was thoughtful about which banks pull from which CRAs to minimize the damage of INQs to my score (e.g., you can app for Amex, DCU, and Barclays close together because they do single-pulls from EX, EQ, and TU respectively - but then wait to let those INQs age before you app for CapOne since they'll pull all 3. DCU will also use one pull for multiple apps within 30 days, which can be very useful).

Hope this is helpful, and good luck.

[Superduper2014]

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@Jamex wrote:

With an unpaid C/O for 19,000 from 2010 showing (auto repo), as well as a paid C/O for $126 and a student loan account showing several 120-day lates from 2009, I have been approved for the following over the past year, in order of when I applied for them:

• Barclays Rewards (3/14 - Instapproved for 1K, reconned immediately to 3k, CLI after 6 mos to 5k)
• DCU Visa (6/14 - 5k)
• Amex Green (7/14 - NPSL)
• Amex EveryDay (7/14 - 1K)
• CapOne Venture (2/15 - 10K)
• CapOne Platinum Prestige (2/15 - 5K)

I've also been approved for a DCU auto loan refi, and a DCU personal loan (5k). I have been consistenly denied for a CLI on my Citi Dividend (which I've had since 2005) and was denied for a Citi ThankYou card I applied for after getting a pre-qual mailer with a specific APR. Citi has consistently cited my C/O as a reason they cannot offer me additional unsecured credit. 

My scores at time of application for all of these ranged from 670-685. Income 76k. Util at time of app ranged from a low of 8% (when I apped for Barclays) to a high of 39% (when I applied for the two CapOne cards)

So, it's definitely possible, but this is just one person's experience and YMMV. I think it helps my AAoA is over 5 years (even after adding all of the above - thanks to Amex backdating). I also spaced out the apps and was thoughtful about which banks pull from which CRAs to minimize the damage of INQs to my score (e.g., you can app for Amex, DCU, and Barclays close together because they do single-pulls from EX, EQ, and TU respectively - but then wait to let those INQs age before you app for CapOne since they'll pull all 3. DCU will also use one pull for multiple apps within 30 days, which can be very useful).

Hope this is helpful, and good luck.

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Your post is pure Gold Jamex, thanks for posting your experience and results. You certainly are very strategic and have studied your moves. I took notes. 

When you applied for the Barclays card, did you have another credit card at that time that was in good standing and with good credit history? Or you had no credit cards at all when you got them to approve you?

Barclays declined my application a year ago when I didn't have any other credit cards (all C/O and settled, but just a few) and their recon dept told me it was denied because I had no other credit cards and they wanted to see at least 1yr of credit card with good payments in order to approve me. I assume most lenders will have similar qualifications. 

[Chrisla2077]

I qualified for Express, VS , and Buckle via the shopping cart trick..however the remainder were regular hard pulls. And while no..they are not Prime cards like the Quicksilver....they are the result of hard work rebuilding..and  are being used to rebuild. 

I started with Fingerhut..went C1 ..Express and...moved forward.....I just last week. was approved for (without the shopping cart trick):

C1: Platinum -500

C1: QS1 - 500

Amazon -700

Walmart -500 

Macy's -600

American Eagle - 150

Dont' get me wrong ...I"wasn't boasting that i did something amazing...simply giving some hope to someone that might have been in a bad situation such as mine. You grow and get better with responsible use.

[Jamex]

Hey Superduper,

Yes, at the time I applied for the Barclays Rewards Card I did have my Citi Dividend (which I've had since 2005). That card did have a 60-day late on it from 2007 that was showing at the time of the application. When I called in to recon from 1k to 3k they were very friendly but wanted me to explain the C/O as well as the 60-day late. That said, it was actually the limit on the Citi card (2500) that helped them agree to bump me to 3k. It seems like with Barclay, if you have less than perfect credit, they'll take the approach of matching your current highest limit - they're willing to take a chance on you, but they don't want to be the only one.

So, if you don't have any other cc's on your report, in that case I might recommend starting with CapOne. They seem to be the most open-minded of all the prime lenders. 

The other thing I'd strongly recommend is checking out each bank's pre-qualification form for their credit cards. Barclays unfortunately got rid of theirs, but CapOne, Chase, Citi, Amex, BoA all have them. So far every card that I've gotten successfully has come after being pre-qual'd on their website (except for DCU - but in their case I got the auto refi before the cc so I knew I at least met some of their criteria). 

If you find that Amex gives you offers, for example, but CapOne doesn't, then don't worry about the conventional wisdom that CapOne is easy and go with Amex. If CapOne pre-quals you and no one else does, then start with them. Even though it's a triple-pull it's worth it if they let you get your foot in the door. You might also end up in their Credit Steps program, which can sound bad but the truth is it means a sure-fire CLI after 6 months if you pay on time every month. You can then use that CLI as a "crowbar" to app for a Barclays and have them match your CapOne limit, effectively doubling your available credit (and thus lowering your utilization if you're carrying a balance). Then, rinse and repeat. Hang on to Barclays for 6 months, get their CLI, and then apply for another card and try to get them to match Barclays.

Three other random tips. First: If/when you go for Amex, you should know that if you apply for one of their charge cards first (Green/Gold/Platinum) and get approved, and then apply for a credit card (EveryDay, Blue Cash, etc), and also get approved, you'll get both cards with just one inquiry on Experian. You should also know that if you're pre-approved for Green, you're also likely to be approved for either the Gold or Platinum since they all use the same underwriting criteria - and if they're offering 50K points for the Gold, you should definitely consider that if you can afford the annual fee. One regret I have is short-changing myself by getting the Green instead of the Premier Rewards Gold. Second: generally at this point in your rebuild I'd avoid Chase and Citi, unless you get a great pre-qual offer on their website. They both seem very sensitive to C/Os specifically, though in your case if they're paid rather than unpaid that might make it easier for you than it has been for me. Third: Don't get trapped by a "rebuilder" card like First Premier, Credit One, etc. If you completely strike out with unsecured cards from prime lenders, you'd be better up setting up a secured card with a prime lender. You'll have to put up 300-500 of your own money to start, but you'll get all of that back after a year at most, and if you always pay in full it shouldn't cost you any money at all. Whereas with one of those rebuilders, you may pay as much as $10/month plus other fees - and they can be a pain to cancel. And once you finish 6 months or a year with a secured prime card, it will almost always graduate to an unsecured card with a respectable limit - and you'll have built a track record with a prime lender you'll actually want to do business with in the future.

Overall in the past year I've gone from having total available credit of $2,500 on one card to $28,500 across 6 cards, all from prime lenders. You can absolutely get there. Good luck!

[Ragelog]

I agree with what Jamex has said.

I went from $700 in credit ($400 on a walmart card & $300 Secured Capital One) to $35,950 all with Prime lenders at least I think.

My advice try to see if you qualify for a Pre-Quailify from Chase's website. If you do then you are pretty certain for approval. Barclay is nice because you can recon their decision and I had good luck doing so I was denied initially. If you can't get an unsecured card then my advice is get a Secured Bank of America Card. Once approved you can get a Rewards card so should cover the annual fee after 6-12 month it will graduate to unsecured and usually with a CLI. Once it does you can call the analyst number and have the annual fee removed.

I think finding the first lender to approve you and give a decent credit limit is the first challenge once you have a higher limit other lenders seem more comfortable granting decent limits.

Good luck

Sam