Re-building Credit after Bankruptcy

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bicRoller
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Re-building Credit after Bankruptcy

Postby bicRoller » Sat Mar 14, 2015 10:03 pm

Alright so after bankruptcy a few years ago, I've now got a stable income and finances and am looking to get a secured card to start re-building my credit - I'm thinking if I start now, by the time my bankruptcy disappears from my credit history I will be in pretty good shape.

So far I've looked at:

Capital One Secured Master Card - Annual Fee $29, 22.9%, min $200 deposit
Primor Visa Gold from 1st Choice Bank - 9.99%, min $200 deposit
Progress Platinum Elite MasterCard - Annual Fee $29, 19.99%, min $300 deposit
Open Sky Credit Card - Annual Fee $29, 17.50% min $300 deposit

My question is I've only dealt with Bank of American before so I really have no experience with these other companies and some of them I've never even heard of. I'm leaning toward the Primor VISA Gold since it has a low interest (not that I plan on keeping a balance but just in case), but I've never heard of 1st Choice Bank before?

Is there any one of these that stand out among the others? Or are they all pretty comparable?

I'm also thinking since Capital One seems the most famous (only one I've heard of) it could lead to an easier time getting a normal credit card with them in the future.

Does anyone have any advice on these cards or on getting and using secured cards in general? I'd really appreciate it!


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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Mar 14, 2015 10:44 pm

I've heard good things about SDFCU's secured card. I think anyone can join for a small fee through the American Consumer Council.

BofA has a reputation for sometimes declining customers for their secured card. Given the bankruptcy in your history, I wouldn't expect an approval from BofA. But the BofA card, if you can get one, may eventually convert to an unsecured card.
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bicRoller
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Postby bicRoller » Sat Mar 14, 2015 10:55 pm

Thank you for the suggestion I am looking up the SDFCU now. Googling can only get me so far and there are so many options to choose from

I'm not thinking of getting a secured card through Bank of America since I don't think they'd approve me right now either

LessIsMore
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Postby LessIsMore » Sun Mar 15, 2015 9:13 pm

I noticed you're in Dallas, Texas. Try the secured VISA card through:

GO Federal Credit Union
5429 LBJ Freeway, Suite 600
Dallas, Texas 75240
214-742-6551

http://www.mygofcu.org/loans/credit-cards

The application button is near page-bottom.

P.S. I filed a Chapter 13 in 2006 - discharged in 2011. After discharge, I rebuilt my credit based on a secured VISA card through my credit union in Washington state. I now have 14 unsecured credit cards with no annual fees.
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CCRider
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Postby CCRider » Sun Mar 15, 2015 10:01 pm

bicRoller wrote:Alright so after bankruptcy a few years ago, I've now got a stable income and finances and am looking to get a secured card to start re-building my credit - I'm thinking if I start now, by the time my bankruptcy disappears from my credit history I will be in pretty good shape.

So far I've looked at:

Capital One Secured Master Card - Annual Fee $29, 22.9%, min $200 deposit
Primor Visa Gold from 1st Choice Bank - 9.99%, min $200 deposit
Progress Platinum Elite MasterCard - Annual Fee $29, 19.99%, min $300 deposit
Open Sky Credit Card - Annual Fee $29, 17.50% min $300 deposit


IMO Capital One Secured is the way to go when rebuilding credit. They have the name recognition and you don't have to join a credit union to get the card. Once you've established a track record with them over time they can upgrade you to an unsecured card which none of the others on your list can do to my knowledge.

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Mar 15, 2015 10:13 pm

CCRider wrote:IMO Capital One Secured is the way to go when rebuilding credit. They have the name recognition and you don't have to join a credit union to get the card. Once you've established a track record with them over time they can upgrade you to an unsecured card which none of the others on your list can do to my knowledge.


Capital One has name recognition, yes, but...
1. Name recognition doesn't matter for FICO purposes - only subjectively when an analyst is manually reviewing a report, and it won't necessarily matter then.
2. In those rare cases, Capital One is hardly on par with American Express, Chase, or US Bank.
3. Cap One has a reputation for encouraging people to apply for new cards, and actual same-account upgrades are less common.
4. Cap One's fees are higher than credit unions

The listed card options are there mostly because those cards advertise a lot so are well-known and get a large market share from people in a hurry. That doesn't mean they are the best options.
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bicRoller
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Postby bicRoller » Mon Mar 16, 2015 5:40 pm

LessIsMore wrote:I noticed you're in Dallas, Texas. Try the secured VISA card through:

GO Federal Credit Union
5429 LBJ Freeway, Suite 600
Dallas, Texas 75240
214-742-6551

http://www.mygofcu.org/loans/credit-cards

The application button is near page-bottom.

P.S. I filed a Chapter 13 in 2006 - discharged in 2011. After discharge, I rebuilt my credit based on a secured VISA card through my credit union in Washington state. I now have 14 unsecured credit cards with no annual fees.


Thank you I am checking out the GO FCU you suggested - if you don't mind me asking how do you get it discharged so fast within 5 years? Everything I've read has said either 7 or 10 years depending on the whether it's chapter 13 or 7.


Thanks everyone so far on the comments on Capital One as well. I was also leaning towards them based on name recognition but I did notice higher fees from them as well.

I have checked out the suggested SDFCU mentioned above and it's only $15 dollars for a lifetime membership in ACC so that I can join the credit union - that's not too bad in my opinion.

I am looking at the GO FCU and it has a slightly higher interest rate so right now my top choice is SDFCU but I think I'm going to look around a little more and then get this done soon.

I am planning on using the card to pay some small monthly bills each month that I can set up to auto pay

bicRoller
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Postby bicRoller » Mon Mar 16, 2015 6:34 pm

I also have another question - does it matter whether the CU or Bank report it as "secured" or not? I mean I guess I assumed credit score companies would know but I've seen this point listed on other sites that explain and talk about different secured credit cards for rebuilding credit

takeshi
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Postby takeshi » Tue Mar 17, 2015 8:35 am

Not for scoring purposes.

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Postby LXMALIBU » Sun Mar 29, 2015 10:10 am

The credit cards that you can apply for after Bankruptcy Chapter 7 is Capital One. I file for BK Chapter 7 in January. It is now end of March and Capital One approved me for 2 Unsecured credit cards for a credit limit of $1000.00 each. Now this was a hard inquiry on my credit report. But I am so Happy that I am getting a second chance. I will not take my credit for granted this time. with the chapter 7, collections started being deleted from my credit report. As well as every trade line ending with a zero balance. which drives up your credit score. My credit score before chapter 7 was 502, it is now 665 with the bankruptcy showing. Applied for JCP and got the response 7-10 day letter in the mail . I applied for Kohls and was told that more information is needed look for a letter in the mail. Also Capital One was one of the creditors included in my bankruptcy. So for anyone looking for a fresh starts, start with capital one and do your best, to take off any old inquiries that are expired, or that you believe are inaccurate . start fresh and start new. everyone gets a second chance.



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