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Credit Card next steps

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Credit Card next steps

Hello all!

 

I filed Ch7 in Dec 2017 and was discharged March 2018. In my rebuild, I have been very careful and selective. I opened a Self Lender loan (I have another post regarding advice for paying that off), obtained an auto loan from Santander (high interest rate, but neccessary as my paid for vehicle died), a secured Discover and an unsecured Quicksilver Cap One. My inquiries are related to the credit mentioned, as I have not gone crazy seeking credit from everyone. I have steered clear of all the predatory credit card offers and personal loans.

 

I am seeking advice on what third (non predatory/high fees) credit card I could qualify for, as I want to continue to be smart with my apps and not waste inquiries. My current FICO 8 scores are as follows:

 

Equifax: 633

Experian: 646

TransUnion: 634

 

I expect to get some score increase this month when I pay off the balances on the cards except for one, using AZEO to let a less than 8% balance report on one card. Currently the Discover has a $0 balance, and the Quicksilver has a $200 balance out of a $500 credit limit. Total utilization across the board is 33%.

 

Any suggestions?

Message 1 of 7
6 REPLIES 6
Senior Contributor

Re: Credit Card next steps


@Etherial73 wrote:

Hello all!

 

I filed Ch7 in Dec 2017 and was discharged March 2018. In my rebuild, I have been very careful and selective. I opened a Self Lender loan (I have another post regarding advice for paying that off), obtained an auto loan from Santander (high interest rate, but neccessary as my paid for vehicle died), a secured Discover and an unsecured Quicksilver Cap One. My inquiries are related to the credit mentioned, as I have not gone crazy seeking credit from everyone. I have steered clear of all the predatory credit card offers and personal loans.

 

I am seeking advice on what third (non predatory/high fees) credit card I could qualify for, as I want to continue to be smart with my apps and not waste inquiries. My current FICO 8 scores are as follows:

 

Equifax: 633

Experian: 646

TransUnion: 634

 

I expect to get some score increase this month when I pay off the balances on the cards except for one, using AZEO to let a less than 8% balance report on one card. Currently the Discover has a $0 balance, and the Quicksilver has a $200 balance out of a $500 credit limit. Total utilization across the board is 33%.

 

Any suggestions?


I don't know if you are looking for a secured or non-secured card - but maybe try checking the prequalify sites for various banks like Citibank, American Express and others.  Another option is to check with any credit unions that you qualify for, as they tend to be kinder towards members than big financial institutions.

If you are looking at secured cards, I might suggest the CitiSecured (it can graduate in 18 months, but some reports have it graduating at 12months).   It can graduate to the Citi Diamond-Preferred, which can be PCed.   

I was pretty specific in the cards I got, as well - both secured cards (once I could qualify) were cards that can graduate (so I don't lose the account history), and can be product changed into cards that I want (Graduated Citi I can PC to the Double Cash, the graduated USbank Visa can be PCed to the Cash+)


EQ: 795 | EX: 785 | TU: 783 | Accounts: 2/6 6/12 10/24
Happy practitioner of AZE6or7or8
Message 2 of 7
Moderator

Re: Credit Card Next Steps

To offer a suggestion it would be good to know what credit cards you included in the BK as they are most likely not going to be issuing you new credit until some time has passed.
"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 3 of 7
New Contributor

Re: Credit Card Next Steps

Gdale6,

 

I burned Cap One, but they let me back in with an unsecured card even before discharge. I have a secured Discover now, but didn't burn them in the BK as I didn't have a Discover card prior. All other cards IIB were basically retail cards (Shell, Marathon, Victorias Secret, Macy's store card, Target store card, Kohls) and a Best Buy Visa.

 

I'm NOT interested in retail cards, as I feel these are of no real benefit to me; I've learned from my mistakes, and am not seeking credit for the sole purpose that "I can get the card". Ideally, I would like either a secured card that can graduate and grow, or an unsecured card from a reputable financial institution. I've read the fine print on most major banks sites, and some don't provide minimum qualifying info or comment on a discharged bankruptcy. I know that the SunTrust secured card and the Citi secured card do state that any bankruptcy must be 2 years post discharge. Otherwise i haven't been able to find solid data points either from the lenders website or the MyFico forums.

Message 4 of 7
Moderator

Re: Credit Card Next Steps


@Etherial73 wrote:

Gdale6,

 

I burned Cap One, but they let me back in with an unsecured card even before discharge. I have a secured Discover now, but didn't burn them in the BK as I didn't have a Discover card prior. All other cards IIB were basically retail cards (Shell, Marathon, Victorias Secret, Macy's store card, Target store card, Kohls) and a Best Buy Visa.

 

I'm NOT interested in retail cards, as I feel these are of no real benefit to me; I've learned from my mistakes, and am not seeking credit for the sole purpose that "I can get the card". Ideally, I would like either a secured card that can graduate and grow, or an unsecured card from a reputable financial institution. I've read the fine print on most major banks sites, and some don't provide minimum qualifying info or comment on a discharged bankruptcy. I know that the SunTrust secured card and the Citi secured card do state that any bankruptcy must be 2 years post discharge. Otherwise i haven't been able to find solid data points either from the lenders website or the MyFico forums.


I would get in with a local CU or one/several of the national ones (DCU, NFCU if you can get in, SDFCU to name a few). CUs are more willing to work with you in a rebuild than commercial banks.

 

I also removed your duplicate thread on this from the CC forum and consolidate answers in this thread as cross posting of same subjects isnt inline with our TOS and it leads to confusion by the members, thanks for your understanding on this.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 5 of 7
New Contributor

Re: Credit Card Next Steps

Thanks Gdale6!

Message 6 of 7
New Contributor

Re: Credit Card Next Steps

Just wanted to reply with some updated info and data points; hopefully it may help someone else out, because that's what this community does and everyone here has helped me tremendously over the years.

 

I live in Georgia, and contacted Delta Community Credit Union. Their lending guidelines for an individual post discharge is as follows:

 

- 13 months post discharge to be eligible for secured products (auto loans, mortgages, etc)

- 36 months post discharge to be eligible for unsecured products (credit cards, LOC, etc)

 

They stated that at 13 months you are eligible to apply for a secured credit card, but it doesn't unsecure, graduate, or grow past your deposit amount. At 36 months, they would re-evaluate your profile to determine eligibility for an unsecured card. Further, they stated they aren't neccessarily inquiry sensitive, nor do they have a "minimum" FICO score to qualify, but look at your total rebuild since discharge and how well you've re-established. I hope this information is useful.

Message 7 of 7
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