5 Years After Bankruptcy: What Are My Credit Options?

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flt678
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5 Years After Bankruptcy: What Are My Credit Options?

Postby flt678 » Thu Aug 09, 2012 11:56 am

5 years ago we filed bankruptcy (we kept the house) and since then we have still have zero debt our monthly bills around $2000 and paid on time along with having a combined income of $108,000. My credit score is 716.

I need a credit card for my new job. Will I be able to obtain a unsecured credit card? I don't want to hunt and peck for a credit card to put expenses on and affect my score. Any insight would be appreciated.


Money card
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Postby Money card » Thu Aug 09, 2012 11:42 pm

your bankruptcy is still on your report (it's suppose to be there for 7 years) although you have 0 debt, your monthly bills are paid in full. under this situation I would discuss this with the person who is in charge of your business travel, ask them if the company issues small business cards or corporate cards?

if they say no, I wouldn't suggest a credit card with chapter 7 on it I would suggest using your debit for right now.

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Postby agp » Fri Aug 10, 2012 6:06 am

Money card wrote:your bankruptcy is still on your report(it's suppose to be there for 7 years) although you have 0 debt, your monthly bills are paid in full
under this situation I would discuss this with the person who is in charge of your business travel, ask them if the company issues
small business cards or corporte cards?
if they say no I wouldn't suggest a credit card with chapter 7 on it I would suggest using your debit for right now.


To add to what he said, even if you get lucky and do get approved for a credit card, the limit will be nowhere near what I imagine you would need for your expenses (if you spend 2K monthly you'll ideally need a card with 20K limit or more). Stick with debit for now until the BK drops off your report, then you can go nuts apply for CCs.

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DavidNY
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Postby DavidNY » Fri Aug 10, 2012 7:22 am

If you are unsuccessful in getting a credit card, go to your local bank and/or credit union and get a secured card. Some banks will not work with someone with a BK on their record but other banks will.

flt678
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Postby flt678 » Fri Aug 10, 2012 8:09 am

Thank you for the replies. I am working off of a debit card attached to an old business checking account. And to clarify, the $2000 a month is for our personal bills, not business expenses. I would like a card to "build upon" one that allows for raising limits as I go. I have thought about the secured card, any idea how long it would take to convert it over to an unsecured card?

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Postby Crashem » Sat Aug 11, 2012 3:08 am

Who did you blow away credit issuer wise in the BK? BKs are tricky as you should be prepared to take some hits to discover who is BK friendly or not.

The reality is that you should have been building your credit card portfolio right after BK. As now, you will need to basically start again building credit cards and limits up. If you can afford it, you might want to do a high CL secured card (think 5k or more). Basically with 5k card reporting, you will find unsecured cards more willing to give you 5k+ unsecured. If you don't, you will find your initial cards to be much lower limits. Obviously, once you get your unsecured cards with higher limit, you can then cancel your secured card and get your deposit back.

Once I have more info, I can recommend some cards to start with. But remember credit building is an exercise with its own ups and downs. It is noticeably more complicated with a BK.
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flt678
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Postby flt678 » Sat Aug 11, 2012 9:44 pm

Well, I see I have some work to do. Would it help any if I got a Capital One card with a low credit limit ( I hear they are pretty good with low credit clients) along with setting up a secured card? like I mentioned before we have a great pay record with all our bills and a decent credit score (716) plus our income to debt ratio is not bad either ($2k+ in house bills and $108,000 income). Don't know if this matters, but when we use to have cards, they were in the $25k credit range.

Thanks for all the replies.

flt678
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Postby flt678 » Sun Aug 12, 2012 5:54 pm

Well, in the "hit" list the most prominent would be American Express. Don't expect anything there. Had several cards (business). We had a Visa with a $25k limit and a smaller Master Card <$10k, I can't remember who issued them. My business partner became ill suddenly and left the business and I could not keep it going. I tried to "package" all the creditors together and had everyone on board,
except AX. They would not work with us, so the whole deal went away.

We have been fine for years with debit cards and cash. With my new position, I am traveling frequently overseas. I would feel better not attaching thousands of dollars to my "cash" account. The company covers everything, but as an expense to be reimbursed with in one week.

Thanks again for the info.



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