Credit Cards for Business Travel after Bankruptcy

Credit Card for Business Travel

After Bankruptcy I needed a Credit card for Business travel. Yes, I have a debit card that I could use. However, right after my bankruptcy discharge I had to travel for work for a week I used my debit card. This “was” fine because the hotel costs were already covered by my work. However, when I arrived to the hotel they put $250.00 hold on my account until after I checked out. They of course would deduct any hotel charges I had and release the hold on 250.

They wanted to make sure I had enough to cover any costs for my hotel room. You know, just incase I wanted to order some burgers, wine, porn movies etc. I still don’t make that much money that I am free and clear to just have them put a hold on my account for “possible’ charges that ‘may occur. I filed in Nov had my 341 in January and had just had my discharge when I had to travel.

After my credit less experience I wanted to get another credit card for business travel. I would just use it to pay for all my travel expenses and be reimbursed to pay off my credit card. I just filed bankruptcy and really have no desire to own a credit card. However, reality is if you are in business and periodically travel you should have a credit card. I could ask my company for an Amex card but I am too paranoid I would be declined. I wonder what questions would arise if I was denied the amex card. It’s not like I told everyone I was claiming bankruptcy.

My first thought was I need to check my credit report or more specifically check my FICO score before applying for a credit card. If it was really low I would not apply and just wait. I was wondering what my score would be. I ended up reaffirming two vehicles, house and was still paying on school loans. I actually should have some positive credit history right out of Bankruptcy. Still, I really wondered what kind of havoc my credit scored suffered after bankruptcy. The sick thing is FICO score does not define who you are but if you want to save money and qualify for loans you better have a decent score.

I finally pulled my FICO score for one of the reporting agencies and my FICO was 633. I was actually surprised it was this high. I really had figured it would be low 500’s. So, this eased my thought on applying for a credit card. I would now start my search online for credit cards after bankruptcy and see if I could read any success stories of people qualifying for credit cards after BK. I found several people talking about Orchard bank and Capitol 1. People seemed to be have success on obtaining credit card through Capitol one after they had claimed bankruptcy. I even read someone BK’d Capitol One and applied for a credit card 6 months later and was approved. I figured I would apply for the Capitol One Credit and see if I qualified.

I did have some apprehensions about applying to Capitol One because my wife had them and they seem to charge several fees and try to work the charges so you have very little credit available when you start using them. I figured I would receive a low credit limit with an annual fee. I really despise annual fees. So I was prepared to have a card with an annual fee, low credit limit and a high annual percentage rate. I went online and did a quick credit application and what do you know I was instantly approved with a $500.00 credit line and 0% interest for 6months. I did have to pay a 29.00 annual fee. That seemed too simple right out of bankruptcy to get a credit card. This actually bothered me qualifying for a credit card 3 months after the discharge of my bankruptcy or nine months after filing. I suppose it was most likely my on time payments for 8 months after reaffirming my vehicles and home.

I received my card in about 7 days and went to activate the card. So, upon verification of all the information I submitted my card was activated at 24%. Yikes, 24% for a credit card. It’s robbery I guess I have to keep on paying for filing for awhile. I was happy to find out that when I activated my card Capitol One has what they call a “Credit Steps” program where if you do the following you can get a credit increase. You need to:

1) Use your card in the first 30-60 days.

2) Make 3 consecutive on time payments

3) Not go over your credit limit

I did read about the program on other sites and I guess I can expect an increase to 1,000.00 then to $1,500.00 I figured if I can increase my limit I will try to qualify for another credit card later at some other point. I would like to get one with a decent credit limit (4K-5K) and then cancel my other credit card. My next question is can I qualify for a car loan right now; my cars will be paid off early next year. I am sure if I can qualify for a credit card after my bankruptcy in Michigan even if it was only for business travel.