Harm in applying for credit card during cp

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undersc0re

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Harm in applying for credit card during cp
« on: March 14, 2017, 07:56:07 PM »
Is there any harm in applying for a credit card during cp, say your halfway through paying it off or whatever, a normal credit card through cibc, walmart, or costco.

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NotATrust-E

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Re: Harm in applying for credit card during cp
« Reply #1 on: March 14, 2017, 08:25:31 PM »
As long as you successfully complete your proposal, I don't see a particular harm to acquiring an unsecured card. However, the effect of a rejection may be magnified for a future lender.

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undersc0re

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Re: Harm in applying for credit card during cp
« Reply #2 on: March 14, 2017, 09:40:26 PM »
I have not successfully completed it yet :-(
Was wondering if it is possible to get one during it
Also wondering if it is allowed or if a person could get in hot water

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NotATrust-E

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Re: Harm in applying for credit card during cp
« Reply #3 on: March 14, 2017, 10:27:37 PM »
It's possible for you to receive a credit card while in a proposal. I assume you will have a difficult time getting approved.

So far as I know, there is nothing in the Bankruptcy Act that stops you from getting a new credit card or otherwise penalizes you for doing so. The point I was trying to make earlier is that if you do not successfully complete your proposal AND you got a card during the proposal, that could look bad.

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Toby

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Re: Harm in applying for credit card during cp
« Reply #4 on: March 15, 2017, 12:16:16 AM »
Is there any harm in applying for a credit card during cp, say your halfway through paying it off or whatever, a normal credit card through cibc, walmart, or costco.

Don't even bother applying to CIBC. I recommend Affirm Financial, or the Capital One Guaranteed MasterCard for your first card.

Once you have a bit of credit history re-established then try Canadian Tire or Costco next.
« Last Edit: March 15, 2017, 12:19:48 AM by Toby »

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CP_2_be_BetteR

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Re: Harm in applying for credit card during cp
« Reply #5 on: March 15, 2017, 09:08:41 AM »
Capital one costco mastercard... I was approved on the spot 2 years into my proposal.

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LT

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Re: Harm in applying for credit card during cp
« Reply #6 on: March 15, 2017, 01:10:23 PM »
Unless you get rejected by everyone else, don't bother with Affirm.  I originally got approved for $1000 at 28.6% interest and $84 fee/year.  They recently changed it to $144/year and 39.99% interest.  The yearly fee of $144 is bad enough, but 39.99% interest!!!! What a bunch of crooks.  Even though I never kept a balance, that interest rate is just outrageous.  I cancelled it right away. 

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Wetcoaster

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Re: Harm in applying for credit card during cp
« Reply #7 on: March 15, 2017, 05:06:59 PM »
How long after the CP is paid off should we apply for different cards? 

I have a Peoples Trust M/C and my wife the Affirm M/C that we have had for 6 months.

The CP has been paid off since early January.

Unfortunately Capital One was part of our CP so they are ruled out as of now.

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undersc0re

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Re: Harm in applying for credit card during cp
« Reply #8 on: March 16, 2017, 09:59:48 AM »
1 year into my cp and my online application seems to be good....its on its way credit score of 551. I imagine the credit limit will be very low if it even does mail out to me. I assume this will not build my credit rating until my cp is paid off and off the report and my foreclosure is off the report. I found it surprising that my Telus cell bill is on the report.

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Wetcoaster

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Re: Harm in applying for credit card during cp
« Reply #9 on: March 16, 2017, 06:15:00 PM »
Unless you get rejected by everyone else, don't bother with Affirm.  I originally got approved for $1000 at 28.6% interest and $84 fee/year.  They recently changed it to $144/year and 39.99% interest.  The yearly fee of $144 is bad enough, but 39.99% interest!!!! What a bunch of crooks.  Even though I never kept a balance, that interest rate is just outrageous.  I cancelled it right away.

Ours was $84 a year and got a letter in the mail today saying it is being raised to $108 a year....no change in interest rate.  No way we will cancel as we do not carry a balance and we cant get another card right now.
« Last Edit: March 16, 2017, 06:17:27 PM by Wetcoaster »

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LT

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Re: Harm in applying for credit card during cp
« Reply #10 on: March 16, 2017, 08:00:57 PM »
That's odd, I wonder why they raised my interest rate? Every story is different. I got a Capital One Costco MC with a $10K limit. This is with a 510 credit rating and half way through a CP.  My mother applied for the same card with a 690 credit score and was rejected.

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Jennykk

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Re: Harm in applying for credit card during cp
« Reply #11 on: March 17, 2017, 11:59:06 AM »
Unless you get rejected by everyone else, don't bother with Affirm.  I originally got approved for $1000 at 28.6% interest and $84 fee/year.  They recently changed it to $144/year and 39.99% interest.  The yearly fee of $144 is bad enough, but 39.99% interest!!!! What a bunch of crooks.  Even though I never kept a balance, that interest rate is just outrageous.  I cancelled it right away.

I got a letter from Affirm that they're increasing the fees and rates. I can't cancel it yet as I just got the card for 2 months now.

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Anoushka

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Re: Harm in applying for credit card during cp
« Reply #12 on: March 18, 2017, 11:14:58 AM »
We are both 2 years into our CP and applied for the Canadian Tire Mastercard. Both accepted. We each started with a limit of $1000 and an interest rate of 25%. After a couple months we each got an increase to $3500. I am now at a limit of $5000 and they reduced the interest rate to 20%. The Canadian Tire card has no annual fees like Capital One, and it seems like a lot of people on here have been successful in getting a card through them. May want to give them a try.

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undersc0re

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Re: Harm in applying for credit card during cp
« Reply #13 on: April 03, 2017, 12:22:59 PM »
I was approved for costco capital one with 6000 limit at 19% interest rate, being an executive cardholder for last 2 years might have helped, not sure how they go about approving. Hopefully that limit stays and hopefully it can help build my credit rating eventually. It will be nice to have this for all the things in life that you need a credit card for where debit credit does not work!

My credit score did drop 20 points when it saw my new credit card though :-(
« Last Edit: April 05, 2017, 03:26:14 PM by undersc0re »

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tuneman

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Re: Harm in applying for credit card during cp
« Reply #14 on: June 17, 2017, 09:53:04 AM »
Your credit is already terrible due to the CP, so no real harm in trying to get a Capital One M/C or a Affirm Mastercard. Even though they are high user monthly fees, just don't carry a balance, be religious and pay off that Affirm M/C every month. It's way better than Payday loans if you are in a cash crunch.

I applied for a Affirm M/C 1 year into my proposal (was approved by Affirm November 2016). While in my CP, I made all my mortgage payments and paid off a vehicle loan as I kept that secured asset. All three of these things helped and I was approved for an unsecured Capital One M/C for $5000 two weeks after I paid off my proposal (June 2017). My next step is to try for a Canadian Tire M/C in a few months and then cancel the Affirm.

 

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