Recommended Credit Cards

[TurnThePage]

I am curious about why anyone who has just gone through bankruptcy or any other credit nightmare would want to immediately start getting back into debt with credit cards

Ironically enough, having credit cards is the only way to start rebuilding your credit. Otherwise there will be no positive information in your credit file since bankruptcy, and it takes years to repair the damage. Also, many hotels and car rental companies, for instance, require @ least one major credit card. Having said that, however, I do agree that selecting a credit card with a high monthly or annual "maintenance fee" is ridiculous, particularly those First Premier or Orchard Bank cards. I saw one credit card offer that starts you out with a $150 annual fee & 35% APR! Avoid these scams @ all costs! The offers do get better. I recommend Capital One, a "bankruptcy friendly" creditor.

[IBroke]

I am curious about why anyone who has just gone through bankruptcy or any other credit nightmare would want to immediately start getting back into debt with credit cards, and even worse-- credit cards with a monthly or yearly fee.

If all you want is to have something positive on your credit report, consider something without any annual or monthly fees-- mail order catalogs which offer credit. You could order something cheap like some towels from someplace like Fingerhut and then pay it off. And then never use it again. It would be a positive account on your credit report, without costing you all these fees, and you wouldn't be tempted to over-spend with it.

Usually, cards/accounts from these companies aren't "respected" by potential future lenders the same way as a major credit card account. Don't ask me why but that's how it is. For some reason, those accounts might not even be considered by some credit-scoring models when it comes to the calculation of your utilization. I have an account from years ago with a $12,000 CL and it is virtually useless. Not to mention the fees they charge before they open these accounts in the first place. Often, the stuff they sell is junk AND overpriced.

Opening CC-accounts doesn't mean you go into "debt" - and matters how you handle these accounts. Considering the tiny CLs that the majority of subprime cards initially offer, I can't see a risk, either..

[GoingDown]

I am curious about why anyone who has just gone through bankruptcy or any other credit nightmare would want to immediately start getting back into debt with credit cards, and even worse-- credit cards with a monthly or yearly fee.

If all you want is to have something positive on your credit report, consider something without any annual or monthly fees-- mail order catalogs which offer credit. You could order something cheap like some towels from someplace like Fingerhut and then pay it off. And then never use it again. It would be a positive account on your credit report, without costing you all these fees, and you wouldn't be tempted to over-spend with it.

[zpbk13]

LoveBubbles5 - did you try Barclay's? I was surprised how quick and painless the process was and I just received the card in the mail last night. Also HSBC is a good company to try for a card post-bk. I hope this helps.

[LoveBubble5]

Hello, I filed BK in July 2010 (discharged in October 2010). In January I applied on by own sporadically right at the store and got a Sears card with a $60 annual fee, $ 400 limit. I have applied for a Home Depot card (denied), and I think but can't remember for another one somewhere.

My SO has applied at Sears, Home Depot, other places and nobody will give him a CC. He has never filed a BK, but does have negative medical accounts on his credit report. Years ago he had a foreclosure (no CC's), and other negative things- as well as a lot of positives because of auto loans. All of that has dropped off. I'm thinking he's getting denied because 1.) the negatives, and 2.) lack of credit.

I would like a higher credit limit, not necessarily to use but show that I have it. I would also like another CC, but don't know where to apply for better rates. My SO would also like to get a CC, but who in the world will give him one?

[zpbk13]

Barclay's just gave me a $1500 line with no annual fee. I think the interest rate is 16.99%. Worth a try to apply for it if you want to reestablish your credit.

[fooked]

HSBC just gave me an $850 line with no annual fee. Rate is 19.99%.

[JvilleGarden]

Got approved for a $500 Secured Visa frm Community First Credit Union in Jacksonville, FL. No fees, 14.4% interest rate, and graduates to unsecured in 2 years. Also has a rewards program. Just using this to rebuild the credit score, which is already at 646. They also refinanced the car we bought a couple of months ago for 4.99% interest. I am THRILLED!!

[Carloscda]

F.Y.I

Discharged chapter 7 on Jan 5, 2011. My current credit score is a 678 from equifax

I never applied for a Secured credit card-
Navy Federal Credit Union (unsecured Mastercard) $ 12,000 limit

Used car loan yesterday for $21,000 I only put 1000 down. It wasn't easy but obtained 8.00 percent from ALLY from the dealership. I was turned down by everyone else

I would recommend if you need a car try Ally and if you have any Military background go to Navy Federal Credit Union.

Congrats!!

[rpg]

Credit cards and car loan after bankruptcy

F.Y.I

Discharged chapter 7 on Jan 5, 2011. My current credit score is a 678 from equifax

I never applied for a Secured credit card-
Navy Federal Credit Union (unsecured Mastercard) $ 12,000 limit

Used car loan yesterday for $21,000 I only put 1000 down. It wasn't easy but obtained 8.00 percent from ALLY from the dealership. I was turned down by everyone else

I would recommend if you need a car try Ally and if you have any Military background go to Navy Federal Credit Union.

[CCsAreEvil]

Was rejected for First Tech, but I was trying to apply for unsecured. There does not appear to be a reason given. It could be (no surprise) the BK discharged about 18 months ago now. Also, remember that CapOne keeps updating the "Date Reported" to Exp and TU on my discharged account with them. So, since it appears they can legally do this for about 7 years, I think I'm royally screwed. Again, by CapOne which continues to do this, this will always show that I have a derogatory item within the recent 30 days.

The ironic thing is, I opened a new CapOne line which is $750 right now... go figure. I never leave a balance, but my interest rate on that account is I think around 25% (I haven't really checked exactly since I never pay interest anyways).

[scmichael]

CCsAreEvil

No problem. I have higher than 700 on those FAKO scores like the ones found on truecredit, but my real Fico on myfico dot com is 693 right now.

Why is your case still opened? I am sure that can't be good when applying for credit.

I'm no expert, but I would be careful closing those smaller accounts before you open a bigger one. Some credit is better than none.

Not sure about the weight of secured vs unsecured, but I did see that my credit reports did say "secured card" in the description.

FYI, First Tech reports to all 3, but only pulled from Experian. I would check your Experian credit report.

One other thing is that I looked at buying my car and First Tech had excellent financing rates. For "B Tier", Audi offered something like 3.85 and First Tech offered 3.24% and no fees.

You should call them and ask what your rate would be even though you aren't a member. Call Asaf he's great (again, I get nothing by recommending him he's just very diligent). They need your real Fico score though as far as I know, not that Advantage or whatever score.

Let me know how it goes with First Tech. I fixed my credit report so I wonder if I can get an unsecured card with them. I probably wont since I just want a few cards and the Audi Lease should help my credit.

Good luck

[CCsAreEvil]

thanks for the info scmichael. I'm betting based on your experience, I will most likely be turned down. I'm just trying to bump my score up just some more because I will probably be applying for a used auto loan in the near future. There's no way I'm going to buy new.

Anyways, my recent FAKO scores are 630, 670, and 700. However, I found out that CapOne (another thread) is hurting my two lower scores because it keeps reporting monthly updates on my IIB credit card account with them. so, maybe getting another card will help much.

Lastly, I may just end up closing all these toy limit cards and just open up one larger secured card... however, last I read, people said secured cards were reported differently and don't have as much weight (for better FICO scoring) as unsecured (if anyone wants to chime in on that).

[scmichael]

CCsAreEvil

I only have an Orchard and now the secured First Tech. Both increased my score. I would think that if you have more then 2 or 3 small or large limit cards that would look bad. Also if you use them close to their limit.

I only make one or two purchases a month <$100 just to keep them active.

I applied for the First Tech unsecured. They send you notice by mail. I can't remember how long it took but not too long as I recall. Customer service can't help during this time so dont bother.

My bk was discharged on 5/4/10 and my credit score was about 680 (real Fico). I got turned down. I think it was a really stupid mistake, a rookie one at that.

I think I got turned down because one of my accounts had a 0 balance, but I forgot to have them change it to "included in bk". I had done it for all the others, but I saw a 0 balance and just overlooked it.

You get an official letter that says "you were declined for" and then I think there was a checked box. Either way it was very official and didnt really say why I was declined. No offers or anything like that. Very official.

PS. My score is now 693 and I got 2nd Tier financing for a new 2012 Audi A6 lease. Not bad.

[iswmle]

Yes, let us know! I have a secured card with them but am waiting a few more months before I request for an unsecured card.