Chapter 7 was discharged a few months ago, and while I was hopeful Capital One would let us open an account again, they've declined every attempt. Prior to Chapter 7, my husband and I had all the major ones, Cap One, Discovery, City, Amex, USBank, and now credit karma recommends things like Ollo, Mission Lane, Merrick Bank, but I don't know any of them. So, I'm unsure what would be our best bet.
And, just to get ahead of any potential well-meaning grand-standing, Chapter 7 was brought on after a freak event in our lives, not poor finicial decisions. Up until we initiated Chapter 7, all our bills were paid on time.
Thank you in advance!
Which cards are the best option after Chapter 7?
byu/MidnightUnusual4113 inCreditCards
Posted by MidnightUnusual4113
4 Comments
All of the Credit Karma recommended cards you listed are from predatory lenders. Given it sounds like you burned several major lenders in the bankruptcy, look towards credit unions. SDFCU has a good secured card with data points about people being able to obtain it even shortly after a Ch 7.
Which banks were included in the filing? Was it just Capital One/Discover, Citi, American Express, and US Bank? You didn’t list Chase, Wells Fargo, or Bank of America.
You’ll want to find a secured card that graduates to an unsecured card after you’ve proven yourself. Discover is usually the go to recommendation, but given you discharged them in the bankruptcy they may not welcome you back.
Did either of you or an immediate family member serve in the military? If so, Navy Federal has the nRewards Secured which tends to graduate at the 6mo mark, plus they’re just a good bank to work with.
BoA also has a couple of secured cards with good rewards, but they’re a lot less consistent with graduating them to unsecured. Might be worth a look if you don’t have a military background.
Capital One is actually very forgiving. You might be surprised. You can try the pre-approval tool and see what it says. As someone who also went through BK (13) I ended up with a few subprime cards. I cancelled all but two because they’ve actually been very good to me. No fees whatsoever. Merrick and Mission Lane will also grant increases. I know Reddit is deadset against subprime lenders, and they’re correct for the most part, but I needed someone to give me a fresh start, they were great. I also have heard decent things about Ollo, but that is only by invitation.
Make sure you pick a card with zero tacked on fees, whatever you decide!
It sounds like you’ve burned every major bank during your c7, so I wouldn’t expect to do business with them for at least a few years. Capital One tends to be more forgiving, so in a year you may see an approval.
Credit Karma gets a kickback for recommending cards to you, so their recommendations are based mostly on how much money they make from you applying to a card and not whether or not those cards are actually a good fit for you. Most of the ones you listed are also predatory lenders that you should avoid unless you have no alternatives.
How much did you burn the banks for? Your best bet is just to wait for another few months and try the preapproval tools every once in a while to see who is forgiving.