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Cap one told me no

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    Cap one told me no

    I received my discharge for my Chapter 7 on the 17th and pre-applied for a Cap One card today to begin rebuilding. Prior to filing, I was a user on my wife's card and we had excellent, on time, 100% paid in full status with them for 6 mos prior to filing.

    They told the both of us no, and that sucks because we were banking on getting another card based on our good history with them. I burned discover in the bankruptcy. We were planning on going to Navy Fed and applying for secured cards. I have money in the bank there to put down towards a deposit and Dec marks a year that I've been banking with them. (my wife has been there for years before we were married)

    Please advise

    #2
    A Secured Card is a good way to go; I applied at CapitalOne shortly after my Discharge and promptly got denied; I applied again a month later and got approved. Here's the wrinkle with the CapOne Secured card; the max credit limit you can obtain with a deposit of $849 is only $1,000; nowhere near enough to be even remotely useful for my normal monthly spending habits. I tried paying it off once per week so I could keep using it, but apparently that triggers some sort of an Anti-Money Laundering protocol which in turn means they put a hold on the funds you paid for 12 days (meaning even though the card is paid off, you can't use it). After two months I paid the card off and closed it.

    My next step was to research banks which have Secured Credit Cards which allow for much higher credit limit possibilities. I found three good options, Bank of America (my then current bank) with a max deposit/limit of $5,000, Wells Fargo with a max deposit/limit of $10,000, and TD Bank with the same limits of BofA.

    My BofA experience: I applied at BofA and they also declined me because of the Chapter 13; I'd been banking with them for eight years by then and moved a fair amount of money through the accounts and was stunned with I got the denial. I appealed, and got denied a second time. I then wrote the CEO and made suggested they were going to lose my business. After two weeks without a response, I closed all of my accounts.

    Wells Fargo: I decided to make them my third option as there are exactly zero branches in my region of the country.

    TD Bank: Lots of branches in my region, and best of all, there was no issue opening a Secured Credit Card with a $5,000 limit. I anticipate they will unsecure the card in February and free up the "locked" savings account with my security deposit in it.
    Latent car nut.

    Comment


      #3
      Absolutely get a secured card! Shop around, some have lesser deposit amounts required or lesser annual fees. After a few months if you do it right, you should be able to qualify for a small-limit unsecured card. Rule of thumb...use the card for no more than 30% of balance and pay it off.
      Chapter 13 - May 2014
      Broke but not broken...

      Comment


        #4
        I started nearly the same as shipo only I went straight for the $5,000 FNBO American Express Secured card. It's still in my wallet. I travel for work, so it was my lifeline. It had enough elbow room to travel 2-3 weeks which was plenty of time to be reimbursed and to pay down the bill.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

        Comment


          #5
          Originally posted by May2014 View Post
          Absolutely get a secured card! Shop around, some have lesser deposit amounts required or lesser annual fees. After a few months if you do it right, you should be able to qualify for a small-limit unsecured card. Rule of thumb...use the card for no more than 30% of balance and pay it off.
          One thing I would add to your comments is, in the case of the three banks I listed above which offer Secured Credit Cards, once you fulfill the "good behavior" requirements (which typically range from five to seven months of usage coupled with a stellar payment history), they refund or release your security deposit and you end up with a secured card in the same amount as you originally secured. Said another way, I am over five months into using my TD Cash Credit Card which has A) a $5,000 deposit kept in an interesting bearing locked savings account, and B) an identical limit of $5,000; come February of 2021 the savings account will be unlocked and I will end up with an Unsecured Credit Card with that same limit of $5,000.
          Latent car nut.

          Comment


            #6
            I think it’s just to soon. It’s been almost a year since my discharge and my husband got approved for capital one so I tried and was denied . He added me as a authorized user. I’ve noticed positive activity all of a sudden. I’ve got increases in credit lines without asking . The first year of filing its hard to get much more then a department store card. But hey, it’s a start .

            Comment


              #7
              Originally posted by Layla55 View Post
              I think it’s just to soon. It’s been almost a year since my discharge and my husband got approved for capital one so I tried and was denied . He added me as a authorized user. I’ve noticed positive activity all of a sudden. I’ve got increases in credit lines without asking . The first year of filing its hard to get much more then a department store card. But hey, it’s a start .
              Agreed, the point many of us are trying to make is, there are some credit card issuers willing to grant Secured Credit Cards with reasonably high limits as soon as 4-weeks post-discharge. Obtaining a Secured Credit Card, in addition to providing you the flexibility and benefits of having a card for things like car rentals and rewards, having one effectively jump starts your road back to a good credit rating.

              My thinking is this, if one cannot afford to tie up some money in the form of a security deposit for roughly six months, then having a credit card of any type is probably not a good idea. However, if you have the liquidity to tie up that chunk of money to secure a credit card, then it is a fair bet you will be financially capable of managing having a credit card without abusing it.
              Latent car nut.

              Comment


                #8
                I screwed up



                So my wife got 2 of the letters in the mail with the pre approval codes. Ran hers, yeah looks good they're gonna get in touch in 7-10 days. Figure it's the new address we're moving into but looks like she got it.



                I tried for a card too since I was on a roll. Denied. Hard inquiries on both of us



                I'll do what we did last time and roll with her card, and have me on as a user? That seemed to help me



                Waiting to get paid and have a subsequent off day so that we can both go to Navy and try there

                Comment


                  #9
                  Pepsibottle1, then I take it you have no desire to try a Secured Credit Card; yes, no?
                  Latent car nut.

                  Comment


                    #10
                    Originally posted by shipo View Post
                    Pepsibottle1, then I take it you have no desire to try a Secured Credit Card; yes, no?
                    I do when I have enough capital built up to go into the branch and try. I'm just afraid they're gonna tell me the same thing Cap did - too many inquiries.

                    Effing dealer shot gunned me when I traded my wife's car in

                    Comment


                      #11
                      Pepsibottle1, you should easily be able to obtain a Secured Credit Card today.
                      Latent car nut.

                      Comment


                        #12
                        Originally posted by Pepsibottle1 View Post
                        I received my discharge for my Chapter 7 on the 17th and pre-applied for a Cap One card today to begin rebuilding. Prior to filing, I was a user on my wife's card and we had excellent, on time, 100% paid in full status with them for 6 mos prior to filing.

                        They told the both of us no, and that sucks because we were banking on getting another card based on our good history with them. I burned discover in the bankruptcy. We were planning on going to Navy Fed and applying for secured cards. I have money in the bank there to put down towards a deposit and Dec marks a year that I've been banking with them. (my wife has been there for years before we were married)

                        Please advise
                        Cap 1 is strange. They are generally very interested in extending credit to the newly discharged, with an annual fee of course. And they have been begging me for years to take out a new car loan.

                        Comment


                          #13
                          Originally posted by Pepsibottle1 View Post
                          Effing dealer shot gunned me when I traded my wife's car in
                          What do you exactly mean?

                          Comment


                            #14
                            Originally posted by joshuagraham View Post

                            Cap 1 is strange. They are generally very interested in extending credit to the newly discharged, with an annual fee of course. And they have been begging me for years to take out a new car loan.
                            I've gotten two credit cards from CapitalOne since my discharge earlier this year, and neither was attached to any fees, initiation, annual, monthly, or otherwise.
                            Latent car nut.

                            Comment


                              #15
                              To update, since last posting my wife first was approved and now I am approved. All is well, we are going to make small purchases and pay these off in full to boost our credit score. Woohoo!

                              Comment

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