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I thought rebuilding was going to be impossible

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    #16
    I got the secured Discover card, and that's pretty much going to be it for me. I will either use it for gas or monthly subscription services, but I like the cash life now. No annual fee, cash back, refundable deposit, and is usually converted to unsecured.

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      #17
      Originally posted by threnners View Post
      I got the secured Discover card, and that's pretty much going to be it for me. I will either use it for gas or monthly subscription services, but I like the cash life now. No annual fee, cash back, refundable deposit, and is usually converted to unsecured.
      Congratulations on the Discover card. Keep in mind, if you are thinking to buy a car or a home, the higher your FICO scores are, the lower the interest rates, and having only one credit card is not optimal from a scoring perspective. The consensus is you need a minimum of three (and some say five) credit cards plus some sort of an installment loan (mortgage, car loan, student loan, or personal loan, secured or otherwise) to get the maximum "bonus points" for your FICO scores.

      I understand living on a cash basis, I do that as well and have no reason to change, however, I'm now leveraging three different credit cards (all paid in full each month before the due date), all with different rewards structures, and have benefited to the tune of about $500 in rewards over the last year, that is effectively "found money" which I wouldn't otherwise have.
      Latent car nut.

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        #18
        Originally posted by shipo View Post

        Wow, my experience was exactly opposite of yours. Last year following my Chapter 13 discharge I applied for a BofA secured card (I'd been a banking customer of theirs for many years at that point); they denied me because "I was either about to file for bankruptcy, or in an active bankruptcy". I appealed and sent them proof of my discharge; they denied me a second time.

        I promptly closed all of my banking accounts with BofA and walked them across the street (literally) to TDBank; they were more than happy to open the accounts AND give me a secured TDCash card with a $5,000 limit. Better still, the secured version of the TDCash card graduates very quickly, especially compared to the BofA card; mine graduated to unsecured exactly six months after my first charge.
        It is my understanding that TD has much lower standards for its secured card than BofA. Supposedly, anybody who applies (within reason, I guess) is approved as long as they are willing to put up the money. I got that info from someone at TD. BofA still exercises some relatively strict underwriting evidently even for its secured cards.

        I have both but BofA remains my preferred bank.

        I also didn’t have any wasted inquiries on cards for which I wasn’t approved. By the time I applied for the BofA one month post-discharge, I was already in possession of cards totaling a CL of $10,000, and with no wasted inquiries.
        Last edited by Jeffster; 06-22-2021, 11:29 PM.

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          #19
          I’ll let my cards age now, but am building relationships with another bank and a few credit unions in the hope that one day I can avail myself of their own credit products. I guess a disclaimer is in order as, despite the financial bind I ended up in pre-Chapter 13, I always managed my checking account and didn’t end up in Chexsystems.
          I’ve opened checking and savings at Bank of the West, and checking and savings at Kinecta CU; Alliant CU and Los Angeles Federal CU. I’ve placed modest amounts in each.

          The point of my post is not to boast as I, clearly, have a lot of rebuilding to do. The point of my post, however, is to show that rebuilding is possible with just a little planning, and maybe just a little luck. I believe that my initial Capital One approval just days after my discharge opened the door for more offers, and my good relationship with BofA helped getting my foot in the door with their secured card.

          For anybody considering Chapter 13, it really was the best decision I ever made. No longer do I dread the phone or emails. The 3.5 years I spent in BK taught me financial discipline, and the memory of my life prior to filing serves as a reminder for the future.
          Admittedly, I had an outstanding attorney, and I was fortunate in enjoying a positive change to my income that enabled me to get an early discharge.

          I felt like a loser when I showed up on my attorney’s doorstep but he quickly allayed my fears and feelings of failure. Once filed and confirmed, it was like a giant weight was lifted off my shoulders. The path was laid out for me, and as long as I fulfilled my part of the bargain, I was on my way back to enjoying my life once again. My only regret was not having done it sooner.

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            #20
            Originally posted by Jeffster View Post

            I felt like a loser when I showed up on my attorney’s doorstep but he quickly allayed my fears and feelings of failure. Once filed and confirmed, it was like a giant weight was lifted off my shoulders. The path was laid out for me, and as long as I fulfilled my part of the bargain, I was on my way back to enjoying my life once again. My only regret was not having done it sooner.
            Great words!
            I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13!

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