Personal Finance

Unsecured CC post-bankruptcy

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  • Apr 17th, 2015 7:59 am
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Newbie
May 1, 2006
86 posts
39 upvotes

Unsecured CC post-bankruptcy

Anyone had this append to them?

I got out of a really bad divorce bankrupt and without any real assets.

I was discharged from bankruptcy the 27th of March and submitted a request the following day to Capital One for a secured card (I was expecting the usual, $75-300 deposit for a $300 limit).

I just got the card this morning with no deposit and a $2500 limit.

Is this an error in my favour?
3 replies
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
Cereal KiIIer wrote: I just got the card this morning with no deposit and a $2500 limit.

Is this an error in my favour?
No probably not an error.

Bankruptcy is a funny thing.
While its standard policy to score post-bankrupts as extreme high risk the real truth of the matter is individuals in this state usually have a higher capacity to service any debts more so than they ever have in their lives.
So as long as your income pre-filing hasn't changed, you went from owing everything to now owing nothing.
The only major issue is, because of the bankrupt filing you will find it extremely difficult to convince any major Cdn funder to give you the chance to re-build at any acceptable rate unless there's evidence of re-established credit elsewhere first.
So far you're on the right path. May have to wait at least two or more years before approaching a main bank for any credit.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
User avatar
Dec 12, 2006
4360 posts
585 upvotes
Messed Up Area
Capital One is very leineant, thats why they have guaraunteed cards.

Great that you got unsecured, but as well you should be looking for secured one as well, as 2 lines of credit will help your credit and as mentioned CDN banks will not look at your for a while. Or even get a car loan.


I heard that some people with credit issues have double dipped capital one and applied for 2nd card product and was accepted as well to help with 2nd card.


Just make sure you keep your utilization low and your credit score will recover nicely in next year or so, been reports of some post bankruptcies jumping from 500's to high 600's/low 700's with proper credit usage. I know divorce caused your bankruptcy, so likely your credit pattern won't need to change but may need to alter it to improve your score as its going to scare you for up to 7 years..but most scaring will be gone after 2 years since discharged so make the best usage of this time.
Deal Addict
Sep 12, 2004
1575 posts
348 upvotes
Ajax
Wait 6 months and try applying for one of Canadian Tire's mastercards.

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