So I was hoping for some guidance about getting a credit card to start rebuilding my credit after bankruptcy. Here's the info: - Declared personal (Chapter 7) bankruptcy at the end of Feb, 2013 - it was discharged in June 2013 - I included the following banks in the chapter 7 bankruptcy: Bank of America, American Express, Barclays, Chase, Citibank, and Sears (not all of these had active accounts with balances I owed, but my bankruptcy attorney had me include everything) - I pulled my credit reports a few months after the bankruptcy was discharged and then begin correcting what I could on there - pulled them again recently and Equifax still has some mistakes but Experian and TransUnion seem to be correct now - My FICO scores are: - Equifax: 617 - TransUnion: 645 - Experian: 615 - I applied for a business credit card from Bank of America a few months ago and was told I didn't qualify but could get it through a secured means if I wanted (I have an LLC) - Last night I applied for an unsecured card from Capital One and was turned down (am waiting for the letter to arrive to request reconsideration over the phone); also applied for a Barclays card and was turnd down (also was turned down on request for reconsideration because I had included them in bankruptcy - I know it was unlikely that I would get this card, but given that they seemed to use TransUnion for their credit pulls based on creditboards.com and my TransUnion score was the highest, I figured I'd give it a shot). Now that I've already had these two (actually three if you count the Bank of America app a few months ago) hard pulls on my already damaged credit, I am not sure what to do next. I'd very much like to see if there's any way to get an unsecured/no annual fee card to help rebuild my credit (even if it's a small credit line) since I'm being very careful in watching my money since the bankruptcy and would prefer not to spend money on an annual fee or security deposit. Anyone have any ideas? If there is really no way to accomplish this, I guess I'd consider a secured card with an annual fee (although if that's the only choice, I might just opt to do nothing right now since I'm surviving OK using cash/debit card). I've read that the capital one secured card is the best (in that it has a low annual fee and a small security deposit required). Any thoughts? Also, is there anything else I could be doing to rebuild my credit? I believe (although am not 100%) that if I could get a co-signer I could probably get some of these unsecured/no annual fee cards and use that to rebuild credit, but unfortunately can't find one currently. Any ideas are welcome regarding rebuilding my credit. Thanks!
I recommend using a secured credit card for now. While you may be able to get approved for an unsecured card, it's best not to risk any more hard pulls on your score. Secured credit cards are great options for rebuilding credit, and you can then work up to getting an unsecured card. Using cash or debit won't do anything for your credit score. In my experience, the First Progress Platinum Prestige Secured MasterCard is also a good option.
Alice has a good recommendation. You might also try the Bankruptcy forum website. There is a load of information as well as questions and answers from people who have been through bankruptcy and are trying to rebuild their credit as you are. Capital One has an online application to see if you qualify for an unsecured card without doing a hard pull on your score. CO is definitely BK friendly and they usually don't require set up fees, an AU fee and their AF is reasonable. From experience I doubt that you will find bank that will offer you credit if you had a balance with them that was discharged through BK. I'm 4 years out and can't get approved for a gas card with a major bank. Pre BK, I had 3 CC's with them and 4 gas cards with only one having a balance that was discharged. And I wasn't ever late with any of them prior to filing. This bank even bought out a Capital One card I have so I do have a MC with them again. Still they won't approve me for a gas card. You'll find some banks will deny you simply because of your BK no matter how good your current history is. Again try the BK website forum. You'll find a some really good advice on managing your credit and raising your score. As time passes after BK, your score will go up if you practice good credit management. Good luck and know that you're not alone recovering from BK.
