November 5, 2011 at 9:04 pm #1928
Here’s a very interesting article I found today, about why some people get denied for a secured card: “Secured Credit Cards: Not Everyone Qualifies”
Eligibllity depends on each bank’s policies (the following is taken from the previous article):
Citibank: It depends on the individual’s situation. Declined to disclose the factors that it considers when making credit decisions.
HSBC: Applicants who provide a security deposit get approved, unless a background check with the credit bureaus turns up a discrepancy related to the identity of the applicant. Recent bankruptcies do not make you ineligible, and credit scores are not a factor in the company’s decision.
Capital One: If the courts have discharged your debts, an applicant would be immediately eligible for a secured card. Capital One also considers the applicant’s ability to repay. “Our goal is to provide reasonable access to credit with the appropriate guardrails in place,” said Sukhi Sahni, a spokeswoman for Capital One.
Bank of America: Generally speaking, applicants must be out of bankruptcy for a year, and must have another relationship with the bank, like a checking account. Delinquencies on other accounts are also likely to result in a denial. “Over time, we would want to see that they demonstrate the ability to manage their finances responsibly because ultimately the goal is to graduate them to a nonsecured card,” said Betty Riess, a spokeswoman for Bank of America.
Wells Fargo: Applicants must be out of bankruptcy for a year. The bank also looks at a variety of other factors, including FICO credit scores and payment history. Wells Fargo only issues credit cards to current bank customers as a general policy.November 7, 2011 at 2:21 pm #2601ambersunParticipant
Interesting, thanks! I really thought everyone qualified for a secured card if they had the money….wow!November 8, 2011 at 3:27 am #2602Christie0909Participant
Anything about certain income requirements?November 8, 2011 at 3:37 am #2604
Well, judging from the article HSBC (Orchard Bank) could be a good option for you as it says: “Applicants who provide a security deposit get approved, unless a background check with the credit bureaus turns up a discrepancy related to the identity of the applicant.” It doesn’t say anything about income.
Plus, ambersun just mentioned on another thread that they have a pre-approval form to see if you qualify (soft inquiry).November 8, 2011 at 4:11 am #2605Christie0909Participant
okay, sounds great. ThanksJune 16, 2013 at 4:31 am #3328
It does seem hard to get approved for just one. I have a cap one. Hi fontana man your insight has been valuable as i have visited but never registrated before here.also have a another one (authorized unsecured) thanks to my wife. I am trying for a third one but i really prefer the one on one with the customer service anybody know any local bank in chicago with a secured card that reports but easy to get? I should mention i have a decent score of over 700 but a bk on my record. I really need a card that converts badly!June 24, 2013 at 10:30 pm #3331
Welcome to the forums. Sorry it took me a little while to respond but things here have been a bit slow lately.
I believe both Orchard and Credit One are BK friendly, though I would avoid Credit One, their fees are pretty high.
Going to a local credit union sounds like a good idea. You have a good credit score, I’m wondering if you could get an unsecured card somewhere. How recent is your BK?June 25, 2013 at 12:11 am #3332
I think Orchard is now controlled by cap one they bought them out recently. I am involved in a credit union although they dont offer secured cards. My bk was filed in 10/2005.June 25, 2013 at 12:11 pm #3333
That’s right, I forgot about the CapOne-Orchard merge.
Have you tried applying for an unsecured card at your credit union? You already have a relationship with them, your BK is 8 years old and you have a good credit score (is that a FICO score?). I think you have a good chance.
Check out this thread, apparently this guy was able to get a couple of Amex cards in a similar situation as yours. He was also approved for an unsecured card at Alliant CU. It looks they have a couple of locations in Chicago: http://ficoforums.myfico.com/t5/Credit-Cards/Good-Credit-but-8-yr-old-Bankruptcy/td-p/851746June 25, 2013 at 7:56 pm #3334
Sounds great alliant is my current credit union. However my big mistake was in part due to ignorance I have too many inquiries on my file and only cap one took me in I tried store cards and other easy to get cards like gas cards and got turn down because of the multiple inquiries i wasnt aware how bad that was for my score. But the fact that i had that bk there made me feel like i had nothing to lose. I regret my recklessness in handling that.June 25, 2013 at 10:08 pm #3335
Well, in that case you just need to be patient and wait until some of the inquiries fall off. In the meantime the two accounts that you have will age a little bit, which is good. I think the CapOne card is great for re-establishing credit. How long have you had CapOne for?
You might still have a chance at your credit union if you apply in person and explain your case, but if that fails, you have those other two accounts to work with.June 25, 2013 at 11:43 pm #3337
2 and perhaps 1 more my wife just got a nice discover card! She already shares one with me her unsecured cap one thats why i have 2 so maybe she would continue being generous. Forget lexington law my wifey is the best credit fixer there is. I couldnt ask for a better wife.June 26, 2013 at 8:13 am #3338
Great. Kudos to your wife!June 26, 2013 at 12:36 pm #3339
Thanks she is amazing. Well anyway if she adds me on i think i can be patient with getting more cards on my own down the line. After that i want to mix up my credit with a few small personal loans to prepare for the big one(dream home).
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