Can't get approved for an unsecured credit card?

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VtheBear
 
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Joined: Tue Dec 20, 2011 5:35 pm
Location: San Francisco

Can't get approved for an unsecured credit card?

Postby VtheBear » Tue Dec 20, 2011 6:03 pm

Two years ago I had a failing business and had to go through a debt settlement with Citi and American Express on 3 cards. I've settled the debt per the arrangement paying 30% - 50% of the debt on each card, and since then I've gotten two secured credit cards and I still hold on to my unsecured card with Bank of America. I've made all my payments on time, but I'm unable to get any unsecured credit cards or increases in my credit limit. My highest limit is $500.

I would rather pay for most of my purchases on a rewards card with a limit of around $4K, that I will pay off every month, but I keep getting dinged because of my charge offs. Will I have to wait the entire 7 years for this to clear, or should I start to get approved for an unsecured credit card in another year or two?

Thanks.


ooxs
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Postby ooxs » Wed Dec 21, 2011 8:52 am

I understand your frustration, but unfortunately what they didn’t tell you is that debt settlements can be equal or worse than bankruptcy. In your case you made the right choice and normally after five to six years you will be able to get any card and possibly American Express.

What you need to do is stop applying for high end cards. You are hurting your credit and only going to get denied. You need is to apply for Orchard Bank Credit Cards, get something with a low 39 dollar membership but at least it will be unsecure and the possibility of a CLI.

After a year of history with them, you will start getting targeted offers from banks like Merrick, capital One and so on.

Check your pre-qualification for Visa (4 cards available)

Welcome to the forum and let us know if you have any additional questions.

VtheBear
 
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Joined: Tue Dec 20, 2011 5:35 pm
Location: San Francisco

Postby VtheBear » Wed Dec 21, 2011 6:46 pm

Thanks! Yeah I knew when I choose to go into settlement the backlash would be a credit freeze for me for the next few years. I was hoping there could be a shortcut though.

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Pete838
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Postby Pete838 » Sun Dec 25, 2011 10:25 am

Any time you 'negotiate' a repayment less than the actual balance you can expect the account to show as a charge-off, and as long as they are on your CR you can expect the more prestigious cards and cards for excellent credit to turn you down.

The good news is that current trade lines that are reporting as paid on time/as agreed will eventually push down the negatives, and in a few years the charge-offs will drop completely.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
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