Disney Visa after bankruptcy?

[MickeyMonstersMom]

I'm proud to say I have recovered from a divorce-prompted bankruptcy in 2000, having moved to double my income and living on a cash-only basis for the past 5 years. I was able to purchase a house last year, a sign (to me, anyway) that I've managed to get back to financial stability. As a result of the mortgage, I've been getting regular credit card offers in the mail, but of course they all include 24.99% APR's, and I refuse to accept that, regardless of my past credit.

At any rate, I received a Disney Visa offer last month (at 24.99%) and tossed it; although it was tempting to get the card with its Disney-related benefits - not to mention be able to rent a car with a wider variety of companies - it wasn't worth the high interest to have one. Well, yesterday I received another offer at 15%. I figure with my credit history it's probably the best I can hope for, but now am not sure I'll even be accepted. I'd hate to apply and have the inquiry on my credit report if I'll just be turned down anyway. Any financial advisors out there who could offer input? TIA!

P.S. Having been through a bankrupcty, I'm well aware of credit-related pitfalls and will never go there again. The card would only be used for small purchases like gas and paid in full each month, as well as my twice-yearly car rentals.

 

[mum4jenn]

I sent you a pm

 

[my3kids]

If it is really going to be paid in full each month, why worry about the interest rate?

 

[doubletrouble_vb]

I suspect one would worry about it because if something happens and it can't be paid in fall the interest rate would come into play...for example unemployment, serious injury or other financial disaster.

 

[aka-mad4themouse]

I'm not a financial advisor, so you can take or leave my advise.

The Disney VISA is an okay rewards card (1% rewards, awarded monthy, no annual fee and few restrictions). Be aware that there are many cards on the market that will offer you similar rewards and conditions.

If your intention is to pay on the card in full each month, then the APR does not really matter. It's only when you carry a balance that it becomes a factor.

Take the time to look into other rewards credit cards before settling on the Disney VISA. You may find another card that suits your needs better. Since it's your goal not to have too many inquiries on your credit report, you need to make sure that this is the card for you before you apply.

Good luck and congratulations on making it thru the bankruptcy and rebuilding your life. It must have been a very difficult thing to do.

 

[MickeyMonstersMom]

my3kids and doubletrouble, both of you have a point. I hadn't really thought about it - it was more of a knee-jerk reaction in principle, lol. I certainly don't plan to charge beyond the disposable amount in my checking account anyway, but I should also keep a contingency plan in mind if I rent that car and then (heaven forbid) have a medical emergency.

 

[MickeyMonstersMom]

I'm not a financial advisor, so you can take or leave my advise...

Good luck and congratulations on making it thru the bankruptcy and rebuilding your life. It must have been a very difficult thing to do.

Oh, casual "financial advisors" are certainly welcome to give input!! Thanks for those practical insights, and the congrats. Yes, I'm very happy to be on the other end of that journey.

 

[mowsluver]

My best friend was in the same situation and just recently (a couple of weeks ago) applied for the Disney Visa and got her rejection notice yesterday...

 

[4formickey]

secured credit cards come in to plan at this point. If this is an option find one that will double what you have in their saving account and this can be a way of rebuilding your credit. When I was rebuilding my credit , I had to go on special rate plans to help the process. The secure cards help me to rent the cars and plan vacations and I earned a small amount of interest.My credit was so bad I was declined for a debit card. It does take time so keep looking and try" bank rate.com". They list interest rates for credit cards and contact numbers

 

[BelleBeautyandtheBeast]

First USA/Bank One are the guys who issue the Disney Visa card. They are not "bankruptcy friendly" creditors. This does not mean you will be rejected but they typically do not issue credit cards to those with bk on their credit report. Some of the more bankruptcy friendly creditors are Providian, Target and Capital One.

Congratulations on buying your house

 

[taximomfor4]

I am very interested in this also. We were just rejected for a Disney Visa already. We have only 1 cc now (JCPenney). We got into bad financial trouble when I lost my full-time employment due to health disaster within a year of having a baby (FMLA ran out). So we struggled, refinanced the mortgage , paid off all cc's and closed the accounts. I just now am kicking myself for that! We have NO major cc's, which really does hurt. Apparently, having cc's with no money charged on them (or very little) makes up 31% of your FICA score (THE big credit score). So we shot ourselves in the foot. When we closed all the accounts, our credit got more shoddy, actually. The only thing I think we MIGHT be able to get is a cc with an annual fee, which I don't want! Seems silly to pay for something every year that we may not use!

Our credit is not HORRIBLE, just definitely not good! Our house insurance premiums, after 5 yrs with our ins co, just almost doubled, though, since they apparently started pulling credit scores. OUCH!

So which cc's do people actually get, with iffy credit?

 

[bugsy]

Oh, casual "financial advisors" are certainly welcome to give input!! Thanks for those practical insights, and the congrats. Yes, I'm very happy to be on the other end of that journey.

sent you a PM

 

[iLoveEeyore2]

I have to think they are harder to get then most credit cards. We have good credit, receive a lot of offers, have rates of 1.99% & 4.99% on balance transfers until paid, but we do have a lot of outstanding debt due to past poor financial decisions. We have never had any problems securing credit with anyone, except Disney Visa. (We usually try and take advantage of no interest/no payment offers when making major purchases. We always pay them off before they expire.) We have applied twice and were denied both times. If you are really concerned about applying and having a rejection, my guess would be that if it would be from anyone, it would be from them.

 

[ExPirateShopGirl]

One of the questions they asked when I applied for the Disney Visa online was if I had ever had a bankruptcy. I'm not sure if they automatically reject you on that basis or not. I have been using mine since they first began issuing them in 2003. I put my monthly household charges on them, like phone, cable, internet, cell, groceries, gas, etc. and pay it off every month. Even after doing this my reward dollars balance is around $450. I plan to charge our WDW package on it in mid-August to take advantage of the free interest (6 mos) on packages and also to have those reward dollars (about 30 or so from that purchase) hit my account before we go. Of course, I will pay my balance before interest charges hit, but it's a nice way to keep that money in my account that much longer.

That being said, I will probably never use my Disney Visa again after August. When we check-in in October, I will have the resort put any incidental charges on another card (5.9% CApital One - the only card I would keep a balance on if i had to.)

Good Luck!

 

[BARBARAAPPLE]

I to had bad credit and applied for www.orchardbank.com and got approved that has helped me get my scores up and the interest is high but I pay it off every month...

If you are looking to rebuild credit I would go with this card they approve most everyone..

Some people have had problems with them ,but I think that can happen with any credit card you can't please everyone and everyone has there on situations

 

[funnygarcia]

Both DH and I were turned down for the Disney Visa.

He does not have a very good credit history (has a few store credit cards) and has a low to mid range FICO score.

I had very little credit history - no prior credit cards/store credit cards, only a car payment and another installment loan for a large furniture purchase (no interest until 2006 and I can build more credit history - hey for $30 a month why not ?). I have a pretty good FICO score and scored a nice interest rate on car loan yet Disney Visa turned me down due to "no revolving credit" .

Waited four months: Applied for Citi Bank Upromise Mastercard on a whim- expected another decline and was totally suprised when I got the card at a nice rate and large limit. My first real credit card- yipee! I get 1% in Upromise account on all purchases and a bit more if shopping thru certain stores/online shopping portal. I don't use it much- mostly for trip related expenses and online shopping- and pay in full after each charge. Earned $11 so far for three purchases (air tickets being the most $$ charged ) LOL.

 

[jennwdw]

May I suggest creditboards.com. I found it a couple months ago when someone else mentioned it here and I've gained quite an education in credit and have raised my scores. If you are not familiar w/the credit game I'd suggest you check it out.

 

[EsmeraldaX]

I suspect one would worry about it because if something happens and it can't be paid in fall the interest rate would come into play...for example unemployment, serious injury or other financial disaster.

Or if one wanted to use it for a large purchase that they knew they would be paying off over 2-3 months. Nothing wrong with that if you see a good deal on something and have the card in good standing & know you'll be able to easily pay it off in a short period of time.

My SO's brother lives cash only. But he has a card for this purpose. Recently, he was in a store and saw a snowblower that had come in returned. It worked but because it was a return, it was marked waaaay down. It was one of the best on the market and so he charged it, knowing he'd be able to pay it off in about 2 months. He was not going to let a deal like that slide. IMO, that is a reasonable use of a credit card. I only know this because he mentioned feeling weird charging something when we asked him where he got it.