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Secured credit cards

LuckyB338
Regular Contributor

Secured credit cards

Hey all,

 

I had filed for ch7 bankruptcy late last year and had my trustee hearing Jan 2021. As of current, the estate has been abandoned by the trustee but I haven't received the discharge as it usually takes a few months. 

I have been adviced by my attorney to go forward and start the credit rebuilding process. In order to do so I would like to apply for secured credit cards. 

I want to open 2 US Bank cards at 5k each and go from there. Please suggest any other secured cards with high limits. Thank you 

Message 1 of 16
15 REPLIES 15
mycreditscoreisfair
Frequent Contributor

Re: Secured credit cards

If I were you, I would focus more on getting cards that graduate to unsecured more so than the initial credit limit. Since, you'll essentially be paying to borrow your own money.

 

Discover and Capital One both have secured options. Discovers initial credit limit can be up to $2,500. And Capital One can have an initial credit limit of $1,000. Both can graduate to unsecured cards in about 6 months.

 

They also both have preapproval websites, so you can check if you're qualified without getting a hard credit pull, which is nice.

 

From what I've read, Capital One seems to be one of the quickest to forgive post bankruptcy/financial issues.

Starting score (January 2020): 454
First goal (December 2020): 580
Current score: 665
Current goal: 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today Smiley Happy
Message 2 of 16
blindambition
Community Leader
Senior Contributor

Re: Secured credit cards


@mycreditscoreisfair wrote:

If I were you, I would focus more on getting cards that graduate to unsecured more so than the initial credit limit. Since, you'll essentially be paying to borrow your own money.

 

Discover and Capital One both have secured options. Discovers initial credit limit can be up to $2,500. And Capital One can have an initial credit limit of $1,000. Both can graduate to unsecured cards in about 6 months.

 

They also both have preapproval websites, so you can check if you're qualified without getting a hard credit pull, which is nice.

 

From what I've read, Capital One seems to be one of the quickest to forgive post bankruptcy/financial issues.


The US Bank secured does graduate now, not just HD version.

OP, I would also consider Discover, BofA, and even Citi. While Cap One presently graduates, they have changed that multiple times, along with 3 HP and a most likely bucketed card. Good luck!

Message 3 of 16
LuckyB338
Regular Contributor

Re: Secured credit cards

Burned citi, chase, Amex, disco What are my chances?
Message 4 of 16
mycreditscoreisfair
Frequent Contributor

Re: Secured credit cards


@LuckyB338 wrote:
Burned citi, chase, Amex, disco What are my chances?

I can only speak a bit for Chase and Discover. But, just based on what I've read, I don't think any of them are too forgiving.

 

I had a charged off Chase card, and haven't been able to get back in with them (it's been about 20 months). I doubt I will be able to since I caused them about a $10k loss. I never had a Discover card but it was difficult to get in with them for just a secured card. They declined me a few times based on credit score and new credit lines.

 

I would definitely look into Capital One. They approved me for an unsecured card (albeit, with a small $750 credit limit) when Discover wouldn't even approve me for a secured card.

 

I think your best bet will be trying the pre-approval sites to see what they say before taking a hard credit pull.

Starting score (January 2020): 454
First goal (December 2020): 580
Current score: 665
Current goal: 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today Smiley Happy
Message 5 of 16
blindambition
Community Leader
Senior Contributor

Re: Secured credit cards


@LuckyB338 wrote:
Burned citi, chase, Amex, disco What are my chances?

Not an option for quite awhile. Cap One is best bet, along with Navy Fed if eligible to join.

Message 6 of 16
LuckyB338
Regular Contributor

Re: Secured credit cards

Cap one gave me pre qual for secured

Message 7 of 16
OmarGB9
Community Leader
Super Contributor

Re: Secured credit cards


@LuckyB338 wrote:

Cap one gave me pre qual for secured


Was that all that came up?

 

You may have to also consider the non-traditional options such as OpenSky, Petal, Green Dot. They're not the greatest, but they're a step above, say, Indigo, Blaze, and First Premier, which, although unsecured, have ridiculous fees associated with them.


Last App: 04/05/2021
Penfed Signature Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 8 of 16
mycreditscoreisfair
Frequent Contributor

Re: Secured credit cards


@OmarGB9 wrote:

@LuckyB338 wrote:

Cap one gave me pre qual for secured


Was that all that came up?

 

You may have to also consider the non-traditional options such as OpenSky, Petal, Green Dot. They're not the greatest, but they're a step above, say, Indigo, Blaze, and First Premier, which, although unsecured, have ridiculous fees associated with them.


I can attest to OpenSky being decent. When Discover initially rejected me, I had no credit open lines. And, like an idiot, I just applied for Discover without pre-approval because I thought there was no way I could get rejected for a secured card. I was wrong.

 

I went with OpenSky because there's no credit check and it's basically the closest thing you can get to guaranteed approval. I deposited the smallest amount and essentially just use it for a positive trade line and more on-time payments.

 

I believe you can deposit up to $3,500 with OpenSky if I recall correctly. The downside is that it will never become unsecured and you won't get your money back unless you close the card. And it has an annual fee of $35, I believe.

Starting score (January 2020): 454
First goal (December 2020): 580
Current score: 665
Current goal: 670

Declined credit cards: First Premier Bank, Verve, Self, Credit One, Today Smiley Happy
Message 9 of 16
LuckyB338
Regular Contributor

Re: Secured credit cards

Citi pre App site down? 

I checked disco they didn't show anything, instead they said they're going to send me a letter...I did burn them

Message 10 of 16
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