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    cc offer

    Please be honest with me here. Am I splitting hairs and walking to fine a line, but here is the situation.
    We filed Chap. 7 on 10/13...341 on 12/8. I know that we are not to incur any new debt between now and then. (Although if were not for this Forum, I wouldn't know that. I don't remember my lawyer or the court giving me this info.)
    Today, my wife received a "You're pre-qualified for a Blue Amer. Express Card" letter. No annual fee and 0% interest for the first 15 months.
    I'm thinking that we shoould apply tonight via the internet option. They may say no or they may ask for it back later, but on the chance that they don't, we would be starting our fresh start w/ a tremendous card.
    We wouldn't use it before our 341 or our discharge if necessary, then just put one $20-$25 bill on it and pay it off in full every month, but it would show use and help us to rebuild our credit.
    We are re-affirming our 2 cars. We are upside down according to KBB trade-in value, but pretty close in actual sale value. Mine is a 2003 Saturn L200 and hers is a 2004 Saturn Ion. We bought both on the same day, Aug. 31, 2003 and have never been late w/ a payment. Mine is 0% through GMAC and hers is around 4.5% through Citizen's Bank. We have 5 yr. loans and our payments together total $530.00.
    So our credit was pretty good until the last year. I have had heart problems for the past several years and she had breast cancer a year ago. Now I am on medical leave, but hope to be able to return to work by March or April of next year. I just couldn't afford the $700 a month I was paying to the IRS for back tax bills and then when we went through a real rough period emotionally and physically, I was late with some cc payments and my income went down to about 45% of what it was, so the two combined and they sold my cc's until they were all at 29.99%.
    Anyway, I am anxious to rebuild our credit and since this card has no fees and will not use it until it is legal to do so, what trouble could we get into for at least trying to go ahead and get it. Thanks, Art

    #2
    AMEX is notorious for being very much ANTI BK. If you have a BK on your credit report (and by now you do-mine took 2 days to show) then they will not approve you. It will be a wasted inquiry, as inquiries impact your score for 6-12 months.
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

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      #3
      ps-since you're reaffirming, your auto loans will continue to report after BK and that history will help you tremendously.
      Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

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        #4
        A pre-approval letter means nothing. I can guarantee you that they didn't pull your report. There's absolutely no way you will qualify for a no-annual-fee card with 0% interest for 15 months with a bankruptcy on your report. Haul out a magnifying glass and read the fine print. It'll say something like "...only for qualified applicants..."

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          #5
          Originally posted by AAAArt
          Please be honest with me here. Am I splitting hairs and walking to fine a line, but here is the situation.

          Anyway, I am anxious to rebuild our credit and since this card has no fees and will not use it until it is legal to do so, what trouble could we get into for at least trying to go ahead and get it. Thanks, Art

          Well, personally I only see that AMEX will be "Spinning their wheels" after they find the bad news. If they do grant you the card, Cool, you might have it for awhile and yes, they MAy cancel anyway.

          What have you got to lose? Nothing....

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            #6
            Originally posted by Lightning
            A pre-approval letter means nothing. I can guarantee you that they didn't pull your report. There's absolutely no way you will qualify for a no-annual-fee card with 0% interest for 15 months with a bankruptcy on your report. Haul out a magnifying glass and read the fine print. It'll say something like "...only for qualified applicants..."
            Lightning,
            Don't guarantee anything unless you are giving the card out yourself. I received a 0% interest card until June 2006 with 1000.00 limit 6 weeks ago. My discharge was june 7th, 2005. Trust me, I read the fine print plus called myself to verify this ( also to make sure after I received the card that the finance charges wouldn't skyrocket.) after all that, they still offered me the card (guaranteed no rise finance charge unless I default on the payment). So here I am with 1000.00 credit card. I'm paying my cable bill monthly with the card, to help re establish my credit, then I pay the bill off each month (online) . has worked out great so far.

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              #7
              Originally posted by brokemama
              Lightning,
              Don't guarantee anything unless you are giving the card out yourself. I received a 0% interest card until June 2006 with 1000.00 limit 6 weeks ago. My discharge was june 7th, 2005. Trust me, I read the fine print plus called myself to verify this ( also to make sure after I received the card that the finance charges wouldn't skyrocket.) after all that, they still offered me the card (guaranteed no rise finance charge unless I default on the payment). So here I am with 1000.00 credit card. I'm paying my cable bill monthly with the card, to help re establish my credit, then I pay the bill off each month (online) . has worked out great so far.

              Great news there brokemama. I can say for sure that while the CC companies aren't fully to blame for a person doing a BK, they should shoulder some of it.

              Simply, they could be VERY stingy with the limits and increases of credit to all or anyone. I think had I had only a limit of $2,000 per card back in 1995, I'd never had done a bk. After all, $10K is really not that much, but triple it and there you go!

              And, I NEVER lied on any of the applications...I tell you, it's a weird feleing to open the approval letter (With card) and see a limit of $6,000...Or even $5,000.

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                #8
                brokemama - we got a similar card too 2 months post-BK...and I read the fine print too.

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                  #9
                  Pre qualified is NOT the same as pre approved, mind you.

                  That just means they came across your name and info on a list. Pre-approved means that you can get the card, and that they have approved you to receive it.
                  BUSY running my own credit repair services! Sorry I don't stop in so often any more!

                  Comment


                    #10
                    The letter did say that she was "pre-approved" , however in the fine print for even pre-approved cards, it usually states something like "based upon information available to us at the time of offer. If your situation has changed, you may not qualify."
                    Just for grins, i did try several times through their web site and every time their "internal servors" were temporarily down.
                    I didn't think that she'd actually get it. It was just an experiment. Art

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