Unsecured credit cards after bankruptcy

[Liam W]

Hello,

 

Does anyone here know which bank in Canada has the most lenient lending policies when it comes to their credit cards when someone has declared bankruptcy in the past?

 

I've heard BMO will consider applications from past bankrupts after 2 years but am not sure if its true.

 

Can't go to CIBC, RBC, AMEX, Presidents Choice, MBNA, HBC as those were included in the BK.

 

Thanks!

[Stu.Padaso]

Hello,

 

Does anyone here know which bank in Canada has the most lenient lending policies when it comes to their credit cards when someone has declared bankruptcy in the past?

 

I've heard BMO will consider applications from past bankrupts after 2 years but am not sure if its true.

 

Can't go to CIBC, RBC, AMEX, Presidents Choice, MBNA, HBC as those were included in the BK.

 

Thanks!

I can't say with certainty that BMO will approve, but they approved me once when I had a couple of old write-offs/collections on my account. They were 5 years old at the time, give or take, so maybe that makes a difference. But I didn't have a bankruptcy on my report though, so it's hard to say.

 

I'm wondering if you tried National Bank. My GF's report is kind of UGH. Not bad, but not pretty either. And they gave her a fairly hefty credit limit without question. Once again, no bankruptcy on her report though so again it's hard to say.

 

I'm wondering if you tried for a Canadian Tire, HBC, or a Sears Mastercard. Or even the Best Buy Visa. One of them, if I was a gambling man, would probably be your best bet. If I were you I'd try a couple of them right on top of each other. If you're approved for them, great. If you're declined for 1 or both of them, then BMO or National would be a waste of time and a hard inquiry.

 

edit. oops. I see you listed HBC as a no-no.

 

edit2. I just remembered something. My ex-wifes niece was in a financial mess at this time last year. I'm not 100% certain if the declared bankruptcy, but I'm almost sure. She couldn't even get a cell phone. She was borrowing money left and right and had people chasing her everywhere she went. She'd start a new job and within a month people were calling her at work. In early December she was approved for a Walmart Mastercard. She didn't do it in-store as she was too embarassed to do it face-to-face, so she printed out the app from the Walmart website and mailed it in. She had to jump thru some hoops but she was eventually approved (big mistake on Walmarts part, in my opinion). I'm not sure how much of a credit limit they gave her, but she told my daughter they gave her $2500.

 

Like Canadian Tire, they have 2 or 3 levels of interest rates to allow them to be more lenient. If you have crappy credit they'll approve you...but at 28% or something. I honestly can't see them giving her a standard 19.9% rate.

Edited January 2, 2011 by Stu.Padaso

[plen]

Not sure about bankruptcies but Capital One gave me a $3000 unsecured MC despite some old collections, though they were listed as paid.

 

Why are you insistent on unsecured anyway? TD gave me a secured $1000 Green Visa once I proved all collections were paid

[Liam W]

Hello,

 

Does anyone here know which bank in Canada has the most lenient lending policies when it comes to their credit cards when someone has declared bankruptcy in the past?

 

I've heard BMO will consider applications from past bankrupts after 2 years but am not sure if its true.

 

Can't go to CIBC, RBC, AMEX, Presidents Choice, MBNA, HBC as those were included in the BK.

 

Thanks!

I can't say with certainty that BMO will approve, but they approved me once when I had a couple of old write-offs/collections on my account. They were 5 years old at the time, give or take, so maybe that makes a difference. But I didn't have a bankruptcy on my report though, so it's hard to say.

 

I'm wondering if you tried National Bank. My GF's report is kind of UGH. Not bad, but not pretty either. And they gave her a fairly hefty credit limit without question. Once again, no bankruptcy on her report though so again it's hard to say.

 

I'm wondering if you tried for a Canadian Tire, HBC, or a Sears Mastercard. Or even the Best Buy Visa. One of them, if I was a gambling man, would probably be your best bet. If I were you I'd try a couple of them right on top of each other. If you're approved for them, great. If you're declined for 1 or both of them, then BMO or National would be a waste of time and a hard inquiry.

 

edit. oops. I see you listed HBC as a no-no.

 

edit2. I just remembered something. My ex-wifes niece was in a financial mess at this time last year. I'm not 100% certain if the declared bankruptcy, but I'm almost sure. She couldn't even get a cell phone. She was borrowing money left and right and had people chasing her everywhere she went. She'd start a new job and within a month people were calling her at work. In early December she was approved for a Walmart Mastercard. She didn't do it in-store as she was too embarassed to do it face-to-face, so she printed out the app from the Walmart website and mailed it in. She had to jump thru some hoops but she was eventually approved (big mistake on Walmarts part, in my opinion). I'm not sure how much of a credit limit they gave her, but she told my daughter they gave her $2500.

 

Like Canadian Tire, they have 2 or 3 levels of interest rates to allow them to be more lenient. If you have crappy credit they'll approve you...but at 28% or something. I honestly can't see them giving her a standard 19.9% rate.

 

OK...where to start

 

Here's what I was told by the various banks' credit departments (not regular CSRs):

 

BMO: 2 years

TD: 4 years

Chase (Sears/Best Buy): 7 years

Laurentian Bank: 3 years

Desjardins: 5 years

Walmart: 7 years

 

Canadian Tire won't say

 

I've got a secured card with Capital One and have had it for almost a year now and that's reporting as being good. They did increase my limit to $1300 from $300 but I dont want to pay another $59 in fees.

 

I've also got a small unsecured line of credit (which mostly acts as overdraft protection) from my credit union as well as an unsecured $1000 loan for some dental work that has since been paid in full. BTW I had absolutely no difficulty obtaining the loan from my credit union a week after discharge and with a 557 beacon score! Sadly, the credit union just doesn't report things to CRA's except for car loans but they told me they'd gladly send something to those who ask (if I give them authorization beforehand)

 

I'm actually planning on trying National Bank. Their credit department (not regular CSR) told me that just so long as I didn't have one of their cards included in a bankruptcy AND I'd had some decent credit history since being discharged that they would consider it. The local branch also said the same thing. I'd always assumed they were tight with their lending, but I recently found out that I might be wrong. So, they would probably be worth a try. My EQ score is now 619.

 

Canadian Tire scares me a little. They're very tight lipped and basically tell me I have to apply and 'they would take a look'

 

When I had decent credit a few years ago, they actually denied me every time I tried to apply, so I don't exactly feel comfortable applying, but it might be worth a try.

 

I'm also looking at CUETS (CU Electronic Transaction Services). I did have a joint MC account with CUETS with someone else, and because it was joint and I didnt want the other person to go through hell and back, I decided to pay it instead of including it in the bankruptcy. I'm still paying it down to this day, and I've gone to my Credit Union and asked them if they could call the CUETS credit department and see what they can do. The only issue is that CUETS is now owned by MBNA (one of the no-no's) and that might throw things off. Although, at present, I have a good history with CUETS itself. CUETS is actually very pleasant to deal with; I was once 43 days late and didn't realize it because of a death in the family, and they actually forgave me! It never showed as being late, and I was completely forgiven. They have also never given me a hard time whenever I have needed a few extra days to pay.

 

Anyhow, I guess I'll try National Bank once my disputes with Equifax have cleared up.

[Stu.Padaso]

Anyhow, I guess I'll try National Bank once my disputes with Equifax have cleared up.

I always figured they were tight with their credit, but I honestly don't know where I got that idea. Like I said, I was very surprised when my GF was approved so easily...and with a very nice credit limit too.

 

I'd really like to know how you make out, so please post back and let us know. It would be nice to find out if they're poor credit and/or BK-friendly as it would be really helpful for others in the future. National Bank just isn't a bank that most people think about.

 

Good luck!

 

edit. For the record, Nat. Bank pulled Transunion on my GF's app.

Edited January 30, 2011 by Stu.Padaso

[DavidBlaine]

I hear that Royal is good with stuff like this too. A friend of mine got a card with a low limit but at least it's there to help her rebuild her credit.

 

Nadeem

[Liam W]

I hear that Royal is good with stuff like this too. A friend of mine got a card with a low limit but at least it's there to help her rebuild her credit.

 

Nadeem

 

Royal was actually one of the ones that was included in the bankruptcy, so that would be a no-go.

 

I've applied with National and am hoping for the best, but, of course, am expecting the worst. The lady at the branch did tell me if it was rejected that I could call and ask for a re-consideration, which I would intend to do.

 

My only issue I see here is that my Credit Union just doesn't report loans (with the exception of car loans) to Equifax and Trans Union. This is a slight issue because there are 2 positive items that people aren't seeing. Nonetheless, my CU did say that, with my consent, they'd be more than happy to send something regarding those items to anyone who needs it.

[DavidBlaine]

Good luck and let us know how it goes. I am in the process of trying to increase my score currently and will start a new thread outlining my experience when I get a chance. Still waiting on my scores!!

 

Nadeem

[Liam W]

Got REJECTED for National Bank. They cited the bankruptcy, and even when I demanded a re-consideration they refused to even look at one good item because 'it shows as being closed by credit grantor'.

 

Gave up on unsecured and went to TD Canada Trust and applied for their SECURED card but was also REJECTED! Another useless hard on EQ.

 

I'm presently in a fight with TD over this because of some misleading advertising on their website and also because their branch and credit department staff misled me into applying for it, even when I stated my specific situation.

 

Buyer beware: TD requires secured card applicants be discharged for 2 years before they'll even approve! This isn't noted anywhere and their branch staff don't know s**t about this rule!

 

Went back to my Credit Union, who called up CUETS Financial (their MC provider), explained my situation and was told by their credit department that a secured card would be a 'definite yes', just so long as it was indeed secured, and so I opened up a term deposit for $550 for a $500 limit card.

Edited February 27, 2011 by Liam W

[Stu.Padaso]

Well, I guess it's something Liam.

 

Sorry about the National Bank rejection. I really am. I can't help but feel a little responsible for the wasted hard inq.

 

What you said about TD doesn't surprise me. They wouldn't approve me either when I was trying to get back on my feet. If I remember correctly, the lady at my branch said they'll overlook a few late payments as long as they aren't too recent. But anything worse than that and they'll reject it. I had that stupid $40 Iqor collection thing on my report, plus a Citifinancial collection for like $4400 (and I've never done any business with Citifinancial. Never. It wasn't mine. Neither was, to be perfectly honest.) TD also wanted 110% security too. All TD would tell me was get those two things off my report and I can have the secured Visa. They didn't care about my excuses. She pretty much held her palm up and said "talk to the hand". So I just let it go. It wasn't worth it.

 

(The Citifinancial collection was pretty old and was going to drop off in less than 6 months anyways. So I never did anything to clean up my report. The Iqor thing came back to haunt me though when I got my mortgage thru TD a couple years later. Long story...)

 

Did you try Walmart? It's actually a pretty good card. Not long ago they were giving out $25 in rewards for new applicants. You had to use the card twice, once in store and once outside the store to get the $25 credit. The card itself pays 1.5% for instore purchases and 1% for everywhere else. And you can redeem the rewards right at the register with the minimum being only $5.

[LC1981]

Hello,

 

I'm in a similar position and just to advise that Walmart clearly states that you have to be out of BK for at least 7 years (I wouldn’t want you to get another hard hit on your credit)... I checked left right and center and unfortunately, NO bank will help you with unsecured credit cards after a BK (BMO will be 2 years if you are already a client). I actually have pretty good credit although I have a recent BK (no creditors were included in the BK). Everything is R1 and a FICO score of close to 700 but I have the word bankruptcy on my report and all the doors have been closed.

 

The only secured credit card that I found was from Peopletrust (I know about Capitalone also, but they don't issue cards in all provinces). You give them a minimum of $500.00 and you will get a card for $500.00.

 

 

 

Hope this helps,

 

 

 

 

[Noday]

To which credit bureau does Peopletrust report?

 

Is it worth getting their secured MC if you already have a secured MC from Cap 1?

[LC1981]

To which credit bureau does Peopletrust report?

 

Is it worth getting their secured MC if you already have a secured MC from Cap 1?

 

 

PeopleTrust reports to Equifax and Transunion.

 

 

 

It is said that’s its better to have at least 2 credit cards if you can pay them off and use them wisely. It apparently does help with your credit rating and it shows you can handle credit. However; if you can’t manage to pay them on time and always keep a high balance, having the extra card will only hurt your credit. It really depends on you...

 

 

[Noday]

Hmm, well, I pay off my credit cards every 2 weeks, when I get paid and I always pay them in full. I already have 2 secured cards: 1 visa from TD and 1 mastercard from Capital 1. Don't think I'll get another Mastercard...if only Amex would give me a card (5 year post-bk...HA!).

[Noday]

bump...why is this board so quiet suddenly?

[LC1981]

bump...why is this board so quiet suddenly?

 

LOL... well for my part, I was sick therefore; away from the computer.. I guess people are just discouraged that it is sooo hard to rebuild your credit after BK. I know I am.

 

For my part, it was not all my fault; I didn’t rank up credit card bills and personal loans etc... my taxes were done by someone that told me they knew what they were doing and it appears that person didn’t (I guess I should have double check but I trusted the person)... I owed a little over $30,000.00 in taxes... I had no other choice and it ruined me. Now creditors won’t even consider giving me any credit even though I always paid them.... Capital one doesn’t offer any credit cards in my province, so I have to cough up a minimum of $500.00 for a peopletrust MC... It’s discouraging..

 

 

[Noday]

How long ago was your discharge?

 

Mine was in 2006 and I'm still afraid to even apply for any credit cards because I don't want any hard inquiries on my credit report...Guess I won't be getting a mortgage anytime soon!

[LC1981]

 

 

How long ago was your discharge?

Mine was in 2006 and I'm still afraid to even apply for any credit cards because I don't want any hard inquiries on my credit report...Guess I won't be getting a mortgage anytime soon!

I was recently discharged (December of 2010) but I already have a mortgage and a new car. I still want to rebuild my credit though...

You were discharged in 2006, if you did rebuild your credit with secured credit cards (aprox 2 years), you should be able to get a mortgage. In general, some creditors require that you be discharged for at least 2 years. For you it's been 5 years (or you’re going on 5 years in the next few months). There are after bankruptcy lenders for mortgages out there that are quite good. One thing you have to remember is the lower the mortgage term (ie: 3-4-5 years) the lower the interest rate. If they offer you a %8 rate for 5 years but a %6.5 for 3 years, take the 3 years term.. By the time you have to renew your mortgage, the bankruptcy will be off your record and you'll be able to shop around for the best rate possible.... Of course, getting a mortgage also depends on your income, expenses etc.... but it's still worth a try. I would suggest a mortgage broker, they deal with numerous mortgage lenders and you'll have one hit on your credit report and they will get you the lowest rate possible. You have to remember that one hard hit on your credit, wont necessarily affect your rating (5-6 in a row will).



You have to remember that it's easier to get a mortgage then a personal loan (you don't pay, they take the house back, it's a HUGE security for them... )The best thing you can do is call a mortgage broker and explain your situation. I'm not a mortgage broker and I don't know you situation but if you have good income, low expenses, and a repaired credit bureau, it shouldn’t be that hard....

If you go on the bankruptcy canada dot com, they have links for after bankruptcy mortgage lenders in BC, MB, ON and QC but I'm sure they have them in all the other provinces..

[Noday]

Regarding the mortgage situation, I've solved the issue, at least for now, by agreeing to buy an income property with my parents. They have bought and paid off 3 houses with BMO, so that bank has agreed to give my parents and I a mortgage, conditional on the sale of their current property. This way, I will have a smallish mortgage to take care of (about 100K) with my parents as cosigners; hopefully, this will continue to bring up my credit to above the coveted 700 mark.

 

On the credit card side of things, I guess I'm going to wait a bit seeing as I already have a Visa and an MC both of which are secured. Perhaps in 2 years I can get an unsecured one...

[Liam W]

Well, I guess it's something Liam.

 

Sorry about the National Bank rejection. I really am. I can't help but feel a little responsible for the wasted hard inq.

 

What you said about TD doesn't surprise me. They wouldn't approve me either when I was trying to get back on my feet. If I remember correctly, the lady at my branch said they'll overlook a few late payments as long as they aren't too recent. But anything worse than that and they'll reject it. I had that stupid $40 Iqor collection thing on my report, plus a Citifinancial collection for like $4400 (and I've never done any business with Citifinancial. Never. It wasn't mine. Neither was, to be perfectly honest.) TD also wanted 110% security too. All TD would tell me was get those two things off my report and I can have the secured Visa. They didn't care about my excuses. She pretty much held her palm up and said "talk to the hand". So I just let it go. It wasn't worth it.

 

(The Citifinancial collection was pretty old and was going to drop off in less than 6 months anyways. So I never did anything to clean up my report. The Iqor thing came back to haunt me though when I got my mortgage thru TD a couple years later. Long story...)

 

Did you try Walmart? It's actually a pretty good card. Not long ago they were giving out $25 in rewards for new applicants. You had to use the card twice, once in store and once outside the store to get the $25 credit. The card itself pays 1.5% for instore purchases and 1% for everywhere else. And you can redeem the rewards right at the register with the minimum being only $5.

 

The TD thing was so stupid. As of 03-29-2011 the issue with TD is now in front of the Small Claims Court because of their unwillingness to resolve the issue. All I wanted them to do is remove the inquiry and they refused basically stating 'you initiated the application, so we're not removing it'. This is despite the fact that they provided me with misleading/deceptive/false representations with regards to their secured VISA, which is a contravention of section 17 of the Consumer Protection Act (Ontario), and the fact that I recinded my agreement with them under section 18 of the act, thereby making it null and void.

 

So, what they've done is take a potentially simple problem to resolve and made it into one huge problem.

 

Oddly enough, banks aren't immune to the Consumer Protection Act but Credit Unions apparently are.

 

Not an issue because my Credit Union is absolutely outstanding and very, very fair when it comes to lending practices. They were the first ones to give me a 'second chance', by granting me a $1000 loan for some dental work one week after my BK discharge.

 

Oh yes, I received my CUETS Financial secured MC in mid-March and couldn't be happier. While CUETS does not advertise the fact that they do secured MC's, it is an excellent product compared to a lot of the other secured offerings, not to mention its pretty easy to obtain. It only required 110% security and they've got a card with no annual fee. Not to mention their customer service is MUCH better than Capital One (NO foreign call centres). Also, no hassles re BK as it is discharged and for some reason it also didn't cost me another hard hit. I guess my CU used one from a few months ago and it would appear CUETS itself doesn't check in this situation. To get one, you need to be a member of a Credit Union that offers their products (MOST do), and you'll usually need to open up a term deposit for 110% of the limit (eg $550 for a $500 card). After 2 years, you can call them up to see if they can release the security deposit.

 

Yes, they're part of MBNA, but even though one item in my BK was MBNA, I didn't have any issues. It would appear they're seperate in many ways.

Edited April 4, 2011 by Liam W

[Liam W]

bump...why is this board so quiet suddenly?

 

LOL... well for my part, I was sick therefore; away from the computer.. I guess people are just discouraged that it is sooo hard to rebuild your credit after BK. I know I am.

 

For my part, it was not all my fault; I didn’t rank up credit card bills and personal loans etc... my taxes were done by someone that told me they knew what they were doing and it appears that person didn’t (I guess I should have double check but I trusted the person)... I owed a little over $30,000.00 in taxes... I had no other choice and it ruined me. Now creditors won’t even consider giving me any credit even though I always paid them.... Capital one doesn’t offer any credit cards in my province, so I have to cough up a minimum of $500.00 for a peopletrust MC... It’s discouraging..

 

If you don't mind me asking, which province?

[LC1981]

If you don't mind me asking, which province?

 

I'm live in Quebec (Ontario boarder).. A lot of companies (like Capital One) don't do business here ....

[Liam W]

I wanted to update this board as it seems to be very quiet...

 

I just got a new Canadian Tire MC in the mail today, not even 2 years post BK. I suppose I can attribute some of it to the 2 secured cards I've been using (Capital One and CUETS)

 

A few weeks ago, I was also approved for a $6000 loan from my Credit Union to consolidate some debt that survived my bankruptcy. The nice lady I deal with at the Credit Union was very impressed with the fact that my score was 659 not even 2 years post BK. She saw that and the loan was approved in a flash, and at a reasonable rate of 13.5%

 

The sole condition for approving the loan was that I deposit $25 of every pay into a savings account. No biggie! I can touch the money only once the loan has been paid in full.

Edited December 6, 2011 by Liam W

[jen01]

Hey, I'm in Mississauga ON, and my boyfriend beclared bankruptcy about 2 years ago. The first secured card he got after being discharged was through a company called HomeTrust, who was actually recommended by the bankruptcy company he worked with. Just recently he received approval from a second secured card through Capital One.

[jen01]

Oops, just realized your looking for an unsecured card.. sorry about my previous post.