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Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

what doors will open 5 years out of bk?

it will be 5 years next month for my bk7...will any  new doors open for me?   this has certainly been trying and I am only half way there.

Will I possibly be able to get a personal loan?  People say doors open after 2 years but I didn't see that happen.

I have gotten some credit cards again but they are all sub prime.  Are there any credit card companies that will consider me at this point?  or any that I claimed in the bk  that maybe will give me a second chance?  I had all prime cards and that is the problem with getting re established.

thanks for any advise

Established Contributor
aussiesareforever
Posts: 741
Registered: ‎10-04-2010
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Re: what doors will open 5 years out of bk?

Most people can get a personal loan shortly after BK. What banks have you tried? This is where your local CU will be very helpful. I'm sure they would love to talk to you and give you different options.

 

What banks were included in your BK? Most of the big name banks are not BK friendly (Chase, Amex, Citi, Discover) although you will read about a handful of people who had credit extended to them with a BK reporting (Discover, Amex).

 

What cards do you currently have now? Which ones are on your wish list?

 

Congratulations on 5 years. Mine turned 4 earlier this year. Cannot 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)

Moderator Emeritus
MarineVietVet
Posts: 14,521
Registered: ‎07-14-2009
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Re: what doors will open 5 years out of bk?


daisydvm wrote:

Most people can get a personal loan shortly after BK. 


In my experience I found this to be true. I can't recall ever being denied a loan specifically based on my BK even soon after my discharge. I'm sure I paid higher interest than those with a cleaner report but obtained credit cards and financed several cars and a mortgage during my BK.

Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

Re: what doors will open 5 years out of bk?

thanks Daisey

I did apply for a loan through Household Bank 9 months after bankruptcy and they denied me due to bankruptcy.  However after 5 years I would think that would

be less a deciding factor but I checked with the bank I have my checking and savings account with and they told me it would not be approved until the bankruptcy came off'my credit reports.  I checked with a couple others and they told me the same. 

I don't have any lates on my credit report and my utilization is 30% on the cards I have now...they said that 30% was good and they would not deny me for that reason but just because of the bankruptcy.

 

I currently have 2 capital one cards..one at $2000 and one at $1250 ..Hooters card at $1250..3 HSBC cards at $300 each..can't get them to budge..Target at $300..can't get them to budge either..And Kays/Jareds cards..total $3000....

I applied for Bank of America , Barclays, Lowe's, Home Depot, Ellan Financial(visa card offered through my bank) and Bill me Later and all declined due to bankruptcy

So as you can see I am getting a little frustrated...  I don't even want to apply for a car loan because I am sure that is a no too...

Any insite on where else to look? 

I appreciate it guys!

Established Contributor
aussiesareforever
Posts: 741
Registered: ‎10-04-2010
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Re: what doors will open 5 years out of bk?

[ Edited ]

It sounds like you are doing well post BK. Keep paying your bills on time. Makes all the difference in the world.

 

The only question I want to ask is that do you really need another credit card or a loan. Seems like you have a fairly good number of cards. I know your highest limit is $2000 but you can make multiple payments a month if needed (I did the same thing for a while before I recently got my Barclay's). If you don't really need a new card, I won't really bother about applying anymore. How many inquiries do you currently have? Is that possibly contributing to your denials?

 

Bank of America is weird about BK. I won't apply to them until it comes off my record. I'm almost pretty sure they will say no. I'm not sure about all the others except for Barclay. They gave me their card and I've read on here that they are BK friendly. Do you know what your current FICO score(s) are? Barclay is great with recons. They approved me instantly for about $1700 and I was able to get a higher limit when I called them. Maybe you just need to call them if you decide to apply again and you get declined.

 

Feel free to share the current number of inquiries and your current credit score. Those might help figure out why you are having a hard time.

 

I'm not sure why your credit unions are saying no. Mine gave me a car loan about three years post BK at a pretty reasonable rate at that time (5%). I only had one credit card at that time (my Capital One) and I think my EQ FICO was around 660. I was also approved for the Capital One auto loan but went with my CU instead. You can get a car loan at a decent interest rate!!!

 

Hope things get a little easier for you soon!

 

Edited to ask: Are you checking with a credit union or just  regular bank. Credit Unions tend to be A LOT more flexible than banks. They tend to be smaller and look to form a relationship with their cutsomers. Definitely a post BK recovery's best friend.

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)

Regular Contributor
LindaLu
Posts: 191
Registered: ‎06-13-2008
0

Re: what doors will open 5 years out of bk?

thanks Daisy.

No I don't need another credit card.....well technically..lol...I just want a major credit card wih a higher limit.. When you go to a hotel for vacation for instance you have to give your credit card to pay for the room of course but they also hold a per night charge and sometimes that can get high.  I also like to have it for a buffer in case I go low on cash.

I don't really need a car loan yet.  My car is probably good for a couple more years.  My car loan is still on my credit reports but is paid off though and shows paid.. I got the car loan of course before my bankruptcy.

 

I want the personal loan for some household projects.  I also thought it would add to my "credit mix" is the phrase  think they use.

 

I didn't check with a credit union..  I have to join one..I already have a checking and savings account so I am just going to open another savins account with them just to get in the door.   I was told however by a friend  that the loans you can get from a credit union is based on how much money you have in with them .."Which kind of would defeat my purpose of taking out a loan if I had that much money in my account....I mean I wouldn't need a loan if I already had that much..
Do you know if that is so?

My scores are around 660

Also you asked in an earlier reply what cards I claimed  in my bankruptcy.  I included 3 Chase cards 2 Citibanks and 1 Discover card and some store cards.  Some of which were GEMB..so I am kind of reluctant to apply for a GEMB card  .

 

thanks for your info too!

Established Contributor
aussiesareforever
Posts: 741
Registered: ‎10-04-2010
0

Re: what doors will open 5 years out of bk?

I definitely feel your pain. I just got my highest credit limit and it is very nice to be able to charge more than $2000 worth of stuff at a time. Certainly go for it if you are needing to charge more than $2000 pretty often otherwise I think you have a good number of revolving tradelines. I think your utilization is also good but of course, it is always better to get it below about 9%. That will maximize your credit score and may help you get more approvals.

 

I've never heard about the credit union limit being dependent on your bank account limit. Naturally, your initial limit will be based on your credit score, income and existing debt. If you make a ton of money, you are more likely to have more money in the bank and are more likely to have a higher credit limit. Many people on these forums talk about printing out their credit report from this website and taking it to the local CU manager. They can give them a rough idea of what they qualify for. Of course, they will still want to pull your credit when you apply but it may tell you what direction they are leaning.

 

The one thing I also did (other than my car loan) was that I got a furniture loan. I needed new furniture and the furniture store was financing at 0% for a year. It reported as an installment loan and probably helped bump my score up a little. That is potentially something else that could help.

 

Your scores are good enough. Maybe get your utilization a little lower and apply for Barclay's again. When did you last apply? They will probably be your best bet for a decent credit limit (apart from your local CU. Don't underestimate the potential of your local CU). Call Barclays for a recon if you are denied. They are usually very good at reconsidering declined applications.

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)

Established Contributor
aussiesareforever
Posts: 741
Registered: ‎10-04-2010
0

Re: what doors will open 5 years out of bk?

Another recent Barclays BK approval- even though they do outrightly say they will not approve for the Ring card with a BK. Personally, I wouldn't apply for the Ring but I would apply for the Apple financing card. That appears to be the easiest to get with a good limit and there have been lots of BK success. Ring Link

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)


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