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Member
whitehat2
Posts: 19
Registered: ‎08-09-2013

Re: Bankruptcy friendly credit cards


inkedstl wrote:

i put this else where but it seems more fitting here and i need some advise on how to proceed. please note i burned cap1 in my BK for 2 accts 1500 and 2500 so i cant probably head to them. 

 

OK i am almost 11 months post bk and this is what i have done thus far:

 

paid off auto loan that was reaffirmed in BK (still fighting to get that reported correctly) and got another one 6 months ago

credit one acct. in november 2013. was given a balance increase in december to 400 from the inital 300

i pay autoloan on time monthly no issues

credit one i paid the activation/annual fee off. and have began using the card for work expenses as of end of January so during 3rd statement ( we get reimbursement every other week so i can pay it off when i get check cut after every use basically

 

the credit watch via credit one scores my TransUnion score which shows 572.

i have a myfico which is doing my Equifax showing a 635. 

 

basically i came upon this site in november.... should i garden the auto loan and credit card at this point or should i try to get a BarClay and then garden for 6 months... im not sure what their requirements are to obtain the BarClay card or which reporting agency they look at. My goal is when i hit 2 years out of BK being able to get a home and have good enough credit to do so and have revolving lines that i am able to pay off every month and collect decent rewards on. PLEASE advise. 

 


I'll give you my experience with applying for a home loan within 2 years post BK....

 

At the time of applying I was 2 years and 3 months post BK with approximately 8 trade lines with some having limits up to $25k. My credit scores ranged from 715 to 740 FICO and my debt/credit ratio was literally 0 (zero). I paid everything off and waited for all my payments to clear my credit report.  Essentially the only debt I had was my car loan.

 

In the end, my credit union denied me solely because my BK was too recent despite having no revolving debt, good income, many years at my job, etc. They advised me they'd like to see 5 years of rebuilding but, 4 years may be ok depending on the overall picture.

 

That said, I'm sure there are high risk lenders that might approve you at 2 years post BK with much higher rates/fees of course...

Valued Contributor
Scupra
Posts: 1,126
Registered: ‎07-12-2012

Re: Bankruptcy friendly credit cards


whitehat2 wrote:

inkedstl wrote:

i put this else where but it seems more fitting here and i need some advise on how to proceed. please note i burned cap1 in my BK for 2 accts 1500 and 2500 so i cant probably head to them. 

 

OK i am almost 11 months post bk and this is what i have done thus far:

 

paid off auto loan that was reaffirmed in BK (still fighting to get that reported correctly) and got another one 6 months ago

credit one acct. in november 2013. was given a balance increase in december to 400 from the inital 300

i pay autoloan on time monthly no issues

credit one i paid the activation/annual fee off. and have began using the card for work expenses as of end of January so during 3rd statement ( we get reimbursement every other week so i can pay it off when i get check cut after every use basically

 

the credit watch via credit one scores my TransUnion score which shows 572.

i have a myfico which is doing my Equifax showing a 635. 

 

basically i came upon this site in november.... should i garden the auto loan and credit card at this point or should i try to get a BarClay and then garden for 6 months... im not sure what their requirements are to obtain the BarClay card or which reporting agency they look at. My goal is when i hit 2 years out of BK being able to get a home and have good enough credit to do so and have revolving lines that i am able to pay off every month and collect decent rewards on. PLEASE advise. 

 


I'll give you my experience with applying for a home loan within 2 years post BK....

 

At the time of applying I was 2 years and 3 months post BK with approximately 8 trade lines with some having limits up to $25k. My credit scores ranged from 715 to 740 FICO and my debt/credit ratio was literally 0 (zero). I paid everything off and waited for all my payments to clear my credit report.  Essentially the only debt I had was my car loan.

 

In the end, my credit union denied me solely because my BK was too recent despite having no revolving debt, good income, many years at my job, etc. They advised me they'd like to see 5 years of rebuilding but, 4 years may be ok depending on the overall picture.

 

That said, I'm sure there are high risk lenders that might approve you at 2 years post BK with much higher rates/fees of course...


Do you mind me asking if this was conventional? Thanks!

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
691 EQ FICO 06/2014
684 TU FICO 06/2014
682 EX FICO 04/2014
$7k NFCU Flagship Sig - $8.5k NFCU cashRewards Sig - $15k NavChek - $2k Cap1 Quicksilver - $3k Barclays Arrival +
Member
inkedstl
Posts: 18
Registered: ‎02-04-2014

Re: Bankruptcy friendly credit cards

still would like insight to where i need to go from here to get my scores up. whether gardening the single card i have now would be the best bet or going for another card so that i have 2 RL and 1 installment loan. I dont do store cards as i would absolutely never use them but i am wanting to be able to cover my on the road expenses with a credit card over coming directly out of my bank account. it would be so much easier than having them hold 250 bucks on my debit card to have a nice CL or 2.

CH 7 discharged 7/13 EQ 545 TU 528
7/3/14 EQ 638
TU via Cred1 611, TU 688
EX 668
CK 638
barclay FICO 637
Member
whitehat2
Posts: 19
Registered: ‎08-09-2013

Re: Bankruptcy friendly credit cards

[ Edited ]

Scupra wrote:

whitehat2 wrote:

inkedstl wrote:

i put this else where but it seems more fitting here and i need some advise on how to proceed. please note i burned cap1 in my BK for 2 accts 1500 and 2500 so i cant probably head to them. 

 

OK i am almost 11 months post bk and this is what i have done thus far:

 

paid off auto loan that was reaffirmed in BK (still fighting to get that reported correctly) and got another one 6 months ago

credit one acct. in november 2013. was given a balance increase in december to 400 from the inital 300

i pay autoloan on time monthly no issues

credit one i paid the activation/annual fee off. and have began using the card for work expenses as of end of January so during 3rd statement ( we get reimbursement every other week so i can pay it off when i get check cut after every use basically

 

the credit watch via credit one scores my TransUnion score which shows 572.

i have a myfico which is doing my Equifax showing a 635. 

 

basically i came upon this site in november.... should i garden the auto loan and credit card at this point or should i try to get a BarClay and then garden for 6 months... im not sure what their requirements are to obtain the BarClay card or which reporting agency they look at. My goal is when i hit 2 years out of BK being able to get a home and have good enough credit to do so and have revolving lines that i am able to pay off every month and collect decent rewards on. PLEASE advise. 

 


I'll give you my experience with applying for a home loan within 2 years post BK....

 

At the time of applying I was 2 years and 3 months post BK with approximately 8 trade lines with some having limits up to $25k. My credit scores ranged from 715 to 740 FICO and my debt/credit ratio was literally 0 (zero). I paid everything off and waited for all my payments to clear my credit report.  Essentially the only debt I had was my car loan.

 

In the end, my credit union denied me solely because my BK was too recent despite having no revolving debt, good income, many years at my job, etc. They advised me they'd like to see 5 years of rebuilding but, 4 years may be ok depending on the overall picture.

 

That said, I'm sure there are high risk lenders that might approve you at 2 years post BK with much higher rates/fees of course...


Do you mind me asking if this was conventional? Thanks!


Yes - I originally applied for a Jumbo Conventional loan and was denied. I asked the loan officer if I had a chance at any of their other programs such as VA (I'm a vet) or FHA even if it was a conforming loan and she said not at 2 years post BK. BTW, it was through Navy FCU since I see you also bank with them. I found it a bit odd that they wouldn't approve me for any sort of mortgage given that I have just over $100k of unsecured credit if I add up the credit cards and line of credit I have with them. Didn't make too much sense to me.

 

One thing I will share is that my rent at the time was 1/3 of what my mortgage would have been and they found that a bit discomforting, the loan office said "that will be a drastic change for you".... I suppose next time I will inflate that number lol..

Valued Contributor
Scupra
Posts: 1,126
Registered: ‎07-12-2012

Re: Bankruptcy friendly credit cards


whitehat2 wrote:

Scupra wrote:

whitehat2 wrote:

inkedstl wrote:

i put this else where but it seems more fitting here and i need some advise on how to proceed. please note i burned cap1 in my BK for 2 accts 1500 and 2500 so i cant probably head to them. 

 

OK i am almost 11 months post bk and this is what i have done thus far:

 

paid off auto loan that was reaffirmed in BK (still fighting to get that reported correctly) and got another one 6 months ago

credit one acct. in november 2013. was given a balance increase in december to 400 from the inital 300

i pay autoloan on time monthly no issues

credit one i paid the activation/annual fee off. and have began using the card for work expenses as of end of January so during 3rd statement ( we get reimbursement every other week so i can pay it off when i get check cut after every use basically

 

the credit watch via credit one scores my TransUnion score which shows 572.

i have a myfico which is doing my Equifax showing a 635. 

 

basically i came upon this site in november.... should i garden the auto loan and credit card at this point or should i try to get a BarClay and then garden for 6 months... im not sure what their requirements are to obtain the BarClay card or which reporting agency they look at. My goal is when i hit 2 years out of BK being able to get a home and have good enough credit to do so and have revolving lines that i am able to pay off every month and collect decent rewards on. PLEASE advise. 

 


I'll give you my experience with applying for a home loan within 2 years post BK....

 

At the time of applying I was 2 years and 3 months post BK with approximately 8 trade lines with some having limits up to $25k. My credit scores ranged from 715 to 740 FICO and my debt/credit ratio was literally 0 (zero). I paid everything off and waited for all my payments to clear my credit report.  Essentially the only debt I had was my car loan.

 

In the end, my credit union denied me solely because my BK was too recent despite having no revolving debt, good income, many years at my job, etc. They advised me they'd like to see 5 years of rebuilding but, 4 years may be ok depending on the overall picture.

 

That said, I'm sure there are high risk lenders that might approve you at 2 years post BK with much higher rates/fees of course...


Do you mind me asking if this was conventional? Thanks!


Yes - I originally applied for a Jumbo Conventional loan and was denied. I asked the loan officer if I had a chance at any of their other programs such as VA (I'm a vet) or FHA even if it was a conforming loan and she said not at 2 years post BK. BTW, it was through Navy FCU since I see you also bank with them. I found it a bit odd that they wouldn't approve me for any sort of mortgage given that I have just over $100k of unsecured credit if I add up the credit cards and line of credit I have with them. Didn't make too much sense to me.

 

One thing I will share is that my rent at the time was 1/3 of what my mortgage would have been and they found that a bit discomforting, the loan office said "that will be a drastic change for you".... I suppose next time I will inflate that number lol..


unfortunatley you are not the only person that has said NFCU is a little conservative when it comes to a mortgage. My plan was try app for a mortgage just a couple months shy of 3 years post d/c, it will be an FHA and I really hope I can find a decent lender! I will be staying under $200k so hopefuly that helps my chances. Good luck whitehat2 and thank you for the info.

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
691 EQ FICO 06/2014
684 TU FICO 06/2014
682 EX FICO 04/2014
$7k NFCU Flagship Sig - $8.5k NFCU cashRewards Sig - $15k NavChek - $2k Cap1 Quicksilver - $3k Barclays Arrival +
Valued Contributor
Scupra
Posts: 1,126
Registered: ‎07-12-2012

Re: Bankruptcy friendly credit cards


inkedstl wrote:

still would like insight to where i need to go from here to get my scores up. whether gardening the single card i have now would be the best bet or going for another card so that i have 2 RL and 1 installment loan. I dont do store cards as i would absolutely never use them but i am wanting to be able to cover my on the road expenses with a credit card over coming directly out of my bank account. it would be so much easier than having them hold 250 bucks on my debit card to have a nice CL or 2.


So all you have is an auto loan and the credit one card? When was your discharge? General rule for Barclays is 6-12 months of revolving history AFTER the discharge for approval. Have you tried the Cap1 pre approval site? Many people were able to get back in with Cap1 after burning them, as always YMMV. Are you a member of any CU's?

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
691 EQ FICO 06/2014
684 TU FICO 06/2014
682 EX FICO 04/2014
$7k NFCU Flagship Sig - $8.5k NFCU cashRewards Sig - $15k NavChek - $2k Cap1 Quicksilver - $3k Barclays Arrival +
Member
inkedstl
Posts: 18
Registered: ‎02-04-2014

Re: Bankruptcy friendly credit cards

That is all i had, i went on a mini app spree this week and got barclay rewards 1k and cap1 300. i was discharged im guessing march of 13 off the top of my head. not sure if there is someone else i should apply with at this point and then garden everything or just stick with the 3 i now have and the installment loan and wait it out... trying to get a sharp rise in score as quick as i can... really would like to refi my installment loan this year with improved credit and save 8-9 percent.

CH 7 discharged 7/13 EQ 545 TU 528
7/3/14 EQ 638
TU via Cred1 611, TU 688
EX 668
CK 638
barclay FICO 637
Contributor
capitalkid
Posts: 104
Registered: ‎11-02-2012

Re: Bankruptcy friendly credit cards

Each of the following was apped for in the same week in april 2013.  At this point I was over 8 years Post BK.

 

Discover IT, onscreen message said to call in to discuss a few things.

They approved with 4K after I explained my BK.  

 

Barclay UPromise MC. Initial Denial.  

I called the backdoor sticky and the credit analyst had me explain my BK, then approved me for 2K.

 

Citi Dividend Visa.  Denied 

I called the backdoor sticky and was approved for 2200 after BK explanation

 

Chase Slate

Denied. no approval on recon.  Reconned 3X and wrote a letter to the EO.

 

  

All denied no success with Recon.  

7.5 Years post BK, I had apped for Discover,

6.5 years post BK Barclay Apple Itunes card 

7 Years post BK LL Bean Visa 

 

2014, over 9 years post BK

Chase Sapphire Preferred Approval upon recon , explain BK 5K starting line.

USAA amex and MC 7K on each line instant approval .

 

I struggled a long time.  I was denied over and over for many many years.  I had plenty of shark cards that i dumped off at the 8 year mark.  I dont think there is any easy way back from BK, just unrelenting perseverance.  

 

Good luck to all starting down that road.

 

JCP Platinum 6.5K. I Barclaycard UPromise MC 5K. I Discover IT 6K. I Sears MC 4.6K. I USAA Amex 7K. I USAA PLatinum MC 7K. I CSP 5K. I Lowes 8.5K. I Paypal MC 6K. I Dell Preferred 2.5K. I Citi HHonors Reserve 3.2K. I CarCareOne 2.4K. I Best Buy 4K. I Care Credit 5K. I Capital One (Credit Steps) Platinum 2.7K. I Roamans $800 I Chevron Visa 1500.
New Member
mm406
Posts: 1
Registered: ‎03-09-2014

Re: Bankruptcy friendly credit cards

I have a BK D/C 12/08 and my EQ Fico is 717. I'm sure my scores would be much higher if I had discovered this information about FICO and rebuilding credit years ago.
New Member
TryingtoRebuild2
Posts: 9
Registered: ‎10-17-2013

Re: Bankruptcy friendly credit cards

My husband's post chapter7 rebuild has been: Filed 7/13, Discharged 10/13. Cap One Plat MC $300 starting limit the day after discharge. It just graduated to $1300 CL with the credit steps program. I wanted to report this because I have read some people on here saying that Cap One only gives a 50% increase, we were excited. We also have a Cap One Auto Loan for 24K at 7% we got this one month out 11/13. Perfect all on time reporting, paying a little extra each month. I just apped him a Barclay Card and he was approved for the Aspiring Prime Rewards card with a $1,000 CL so that was at the end of 4/14. I hope this might help someone looking at what to app for. We both also have an inquiry from our Credit Union when we joined in 8/13 in case that factors in to the Barclay approval. I have read this board over and over to try to get the best rebuild possible for both of us and it has been so super helpful!!


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