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Frequent Contributor
jdirilo
Posts: 331
Registered: ‎08-27-2012

Why is it so hard to get credit after a BK?!

I had a Ch7 discharged in Oct 2009. I knew nothing about rebuilding credit at the time, I was just under the impression that I couldn't ever get credit again. I mostly had small collections and tons of medical bills that were included, as well as a couple of judgements. Well, I recently found this forum, have been keeping an eye on my credit reports and scores, and was approved for a secured card with Cap1 ($201), a secured card with my bank Wells Fargo ($500), unsecured $500 with cap 1, and $500 unsecured with NFCU. I have applied like an idiot everywhere else I can think of and just denied left and right. I tried to get an account with local CU's and all denied because of some old info reporting on Chex systems that was included in my BK and one that was settled. I tried to recon with Chase, Discover, Citi, & walmart. All of them said no way. So, is there any other place I can try and get credit? The good things on my credit are a recent car loan for $9200, several student loans($20,000) that are deferred until I finish school in a couple years, and a small personal loan for $495. All of those are paid on time, no issues there. I guess I should STOP apping for awhile, but it is just so addicting :smileysad: Any suggestions? Please be criticize constructively!

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Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Why is it so hard to get credit after a BK?!

You already have 4 cards, & you have some installment loans that are also positive.  I think you need to stop applying for more credit & try to be patient.

Latest scores: Walmart TU: 766. MyFICO TU: ---. DCU EQ: 741. PSECU EX: 756.
Regular Contributor
Comet21
Posts: 204
Registered: ‎08-29-2007

Re: Why is it so hard to get credit after a BK?!

I agree, you do not need anymore credit. Just continue to build with the credit you have.


Starting Score: TU 477 EQ 533 BK 1/27/2012
Current Score: EX 702 TU 681 EQ 652 1/10/2014
Goal Score: 700


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Frequent Contributor
jdirilo
Posts: 331
Registered: ‎08-27-2012

Re: Why is it so hard to get credit after a BK?!

Thank you. I am too impatient. I was thinking since I was approved for one, I'd be approved for another. But that isn't the case! I'm trying to really take it easy....I will attempt to "garden" for awhile. It is SO hard!

Established Contributor
aussiesareforever
Posts: 740
Registered: ‎10-04-2010

Re: Why is it so hard to get credit after a BK?!

I literally rebuilt my credit with one card. I got the Capital ONe unsecured a few months after my Chapter 7 discharge and had it as my solo card for three years before I applied for a new card. At the time I was applying for a new card, my scores were in the mid 600s.

 

I will echo what everybody else has said. Stop applying and use the cards you currently have. Be patient. Good things come to those who wait.

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)

Valued Member
algorithmslave
Posts: 68
Registered: ‎09-10-2012

Re: Why is it so hard to get credit after a BK?!


jdirilo wrote:

I had a Ch7 discharged in Oct 2009. I knew nothing about rebuilding credit at the time, I was just under the impression that I couldn't ever get credit again. I mostly had small collections and tons of medical bills that were included, as well as a couple of judgements. Well, I recently found this forum, have been keeping an eye on my credit reports and scores, and was approved for a secured card with Cap1 ($201), a secured card with my bank Wells Fargo ($500), unsecured $500 with cap 1, and $500 unsecured with NFCU. I have applied like an idiot everywhere else I can think of and just denied left and right. I tried to get an account with local CU's and all denied because of some old info reporting on Chex systems that was included in my BK and one that was settled. I tried to recon with Chase, Discover, Citi, & walmart. All of them said no way. So, is there any other place I can try and get credit? The good things on my credit are a recent car loan for $9200, several student loans($20,000) that are deferred until I finish school in a couple years, and a small personal loan for $495. All of those are paid on time, no issues there. I guess I should STOP apping for awhile, but it is just so addicting :smileysad: Any suggestions? Please be criticize constructively!


Perhaps you need to wait for the numerologist to forcast your future probability of default. 

 

Look, just be thankful that a BK is a fresh start and does not effect the score after. Atleast from my understanding. One charge off with a balance that still reports as late is way worse for the score than a BK ever will be. In addition, look at the bright side, I do not think there is a recidivism rate of BK worked into the score. Just in a perception of the lender/underwritier at the bank when they read your report. This of course falls off the radar after 'X' amount of years. 

You can wrap me in your flag, make me say a praise to your creator and make me spend your currency, but remember this, I am a loyal servant to Justice and a Patriot to none. I am free...
Regular Contributor
Guyatthebeach
Posts: 212
Registered: ‎09-04-2012

Re: Why is it so hard to get credit after a BK?!

First thing first, I feel 4 cards are enough period. You are almost three years out of bankruptcy and that is a great thing!!!! If I were you, I would let my accounts age and help increase my score. The second thing I would work on is work with Capital One and Wells Fargo to convert those secured cards into unsecured cards. You have a mix of both, and given the time after your bankruptcy you should be done with secured cards. I would also focus on your credit usage and keep balances on them low if possible at least no more than 30%.  It would be best to keep your credit card balances under 10% but that may not be realistic for everyone.  

 

If you don't mind, what is your interest rate with your NavyFed credit card?

Regular Contributor
somotao
Posts: 227
Registered: ‎08-13-2011

Re: Why is it so hard to get credit after a BK?!

Totally agree with what everyone has said....your focus now should be letting your cards age, and smartly utilizing the cards in your arsenal to get your credit score as high as possible. It is key to keep your balance under 10% and if you can manage the strategy a lot of people have advised by only letting one of your cards report a balance between 2% and 9% while the rest never report a balance in a few months your credit score will only continue to go upwards. I too am in a similar situation and have gained over 100 points since I started following the advice of people on this forum. 


Starting Score: 500s
Current Score: EQ: 693myFICO(9/7/12), TU: 710myFICO(9/2/12), EX Plus:701(lp,4/16/12)
Goal Score: 700

Wallet: Discover IT $2000, Capital One Platinum $12000, Barclays Rewards $4700, Walmart $2600, Amazon Store Card $1250.
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Frequent Contributor
jdirilo
Posts: 331
Registered: ‎08-27-2012

Re: Why is it so hard to get credit after a BK?!

Thank you everyone for your advice!

My NFCU nrewards card is an interest rate of 17.99%. I think it is the lowest one I have. I really need to stop apping! I checked my CR's again yesterday and disputed a few more collections that were paid, included in BK, and a judgement that needs to be removed also. I have been successful in removing 3 judgements off all 3 CR's so far, thanks to these forums! But, I haven't seen more score increase(which is probably because of all the stupid inq's). So would it be wise to start making payments on the charge off account? It is for about $2200. If it is worth it, then yes, I will do it! I was also thinking about making small monthly payments on my student loans. Do you think that will raise more score at all, if the loans are still in deferment? Thanks for all your help!

Regular Contributor
Guyatthebeach
Posts: 212
Registered: ‎09-04-2012

Re: Why is it so hard to get credit after a BK?!

I would definitely stop apping. You actually fine with your credit cards overall in my opinion. If you allow six months to pass after your last credit inquiry, you will see a noticable increase on your score just by not having any more inquires and letting your accounts open age.  Regarding the charged off account, why was that not included in your bankruptcy? If it was included, you should consider getting charge off removed. If it was charge off that was notin your filing, do you have enough cash on hand to payit off?  The reason I'm asking is if you do have enough cash to pay it off, you should call the collection company that has it for a settlement.

 

As for the student loans, I would let them stay in deferment while you can and use the money to build up your saving reserve.


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