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hausfrau
Posts: 178
Registered: ‎04-06-2013
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Re: Why do banks decline people for credit cards that have bankruptcy?

This is why it is called "rebuilding". One brick at a time that YOU have to place yourself. It isn't AMEX's job to just hand you a house.

We got into debt because we went from civvy pay to military pay when hubs deployed. I didn't wander around crying that it wasn't fair that we couldnt get new credit after we had shown that for whatever reason, we couldn't pay our bills.

Slapped on a fresh pair of big girl panties and slowly did what I could to pay off what was owed, and then took a responsible look at the next steps needed to obtain and keep good credit.

These financial institutions aren't your friends, they are here to make money.

Also, IMO, medical bills should be handled a lot differently than a maxed out Best Buy card. Handling medical debt like consumer debt really is putting a price on someones life.

Starting my rebuild!


Established Member
mikey4833
Posts: 90
Registered: ‎01-26-2013
0

Re: Why do banks decline people for credit cards that have bankruptcy?

[ Edited ]

hausfrau wrote:
This is why it is called "rebuilding". One brick at a time that YOU have to place yourself. It isn't AMEX's job to just hand you a house.

We got into debt because we went from civvy pay to military pay when hubs deployed. I didn't wander around crying that it wasn't fair that we couldnt get new credit after we had shown that for whatever reason, we couldn't pay our bills.

Slapped on a fresh pair of big girl panties and slowly did what I could to pay off what was owed, and then took a responsible look at the next steps needed to obtain and keep good credit.

These financial institutions aren't your friends, they are here to make money.

Also, IMO, medical bills should be handled a lot differently than a maxed out Best Buy card. Handling medical debt like consumer debt really is putting a price on someones life.

I totally agree with you there. I had a 10 month old brother who died from a rare cancer in 1991. My parents had tons of medical bills and they wouldn't treat him anymore because of it.. So this nice arab man who owned this restaurant raised $5000 to help my mother and father but he died. They had no choice but to file bankruptcy.. But my parents did it a 2nd time in 2009 when I filed. This too was because of a medical problem my dad got injured at work fell off a truck and hurt his back really bad. I carried their house payment for them and my wife is on disability that is all I had then till I got a job then now I'm back in the business but I work full time the business makes less than $500 a month gross just because its new. Everything I get I put into the business. 

 


Starting Score: TU:599 EXP: 596 EQ: 595 Starting Year 2009
Current Score: TU:715 (685 FAKO) EXP:647 (673 FAKO) EQX: 637 (FAKO 615) - All on 04/24/13 In the garden until 05/2014 because too many inq and low AAoA 1.4 mo. My BK chap 7 will be 4 yrs old July 2013
Goal Score: 760+ across the board by next year July 2014 5 yrs after BK


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Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
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Re: Why do banks decline people for credit cards that have bankruptcy?

I couldn't disagree more.  Yes, some folks fall on hard times and file BK when they had no ill intentions.  Job loss, illness, etc. gets people caught in binds that BK is their only resort for relief.  While they had no ill will, fact is they burned companies who lost out on that cash.  As well as all the people who are invested in these companies, whic h likely includes many people here with 401k's or other investment accounts.  

 

Getting the government to dictate who gets credit is just a horrible idea.   Denying on race, gender, religion etc. is of course bad but dictating that they have to lend to those who have bad credit is going to drive the costs for everyone else through the roof.  Should those that have good credit have to pay more because you defaulted in the past and the govt forces lenders to lend to you.  On top of making them lend to you it has to be at a rate that you deem to be acceptable.  For them to lower the rate they lend to you they are going to raise rates on those that have been responsible or at least have not had credit issues.  This country already penalizes those who are responsible to benefit people who feel entitled.  Doing this will take our already completely screwed up financial industry and make it even worse. 

 

*** No I am not sitting up on a high horse.  I've been denied credit and pay higher interest rates due to two 6 year old collections, one bogus and one legit.  Is it irritatiing?  Yep.  Do I think the govt should get involved?  Heck no.   

Regular Contributor
Matt6995
Posts: 127
Registered: ‎03-07-2013
0

Re: Why do banks decline people for credit cards that have bankruptcy?

There should be more controls on how a Doctor or Hospital can destroy your credit due to unpaid bills.

 

I understand and agree that people need to pay their bills but in my case the bills that were deleted were all to hospitals and Doctors.

 

Said Hospital and Doctos refused any kind of goodwill or hardship adjustments and both said they preferred to charge it off and report me for non payment.

 

This of course all due to someone else hitting my friends car. He died because of the other drivers negligence so he paid the ultimate price. Driver of semi truck spent 3 entire days in county for wreckless op so he did not pay at all.  I lost 18 months of my life trying to walk again and another 7+ years to bankruptcy.

 

In my opinion the driver and business owner who did not buy insurance or even pay taxes should have been persued for the bills and threatened instead of me.

 

Again, all my opinion.

 

 

Established Contributor
VirtualCuriosity
Posts: 839
Registered: ‎09-10-2010
0

Re: Why do banks decline people for credit cards that have bankruptcy?

My gut told me not to even reply, but I am a risk taker.  This is always a touchy subject. 

 

First, good luck to the OP rebuilding your trust to creditors.  Second, IMO there is not a bankruptcy that doesn't have victims, period.  We as humans tend to want to come up with our own personal excuse that will justify the end to the means.  Excuses are just excuses.  If we cannot be honest with ourselves, then what good is it moving forward financially?  There is a camp that believes that BK filers get a bad rap and should be forgiven sooner.  There is another camp that believes that BK filers have it too easy in terms of rebuilding credit.  The bottom line is however, is that a lot of us are here rebuilding and/or learning the FICO specifics. 

 

My personal experience is that I have also had some tragic excuses for damaging my credit, although I spent many more years paying late and fines as I would have had I just filed BK.  But, no matter the excuse, I know I could have avoided the end result with better planning.  And, I am a firm believer that everyone could have avoided at least some of the mess they had a part in creating.  I hope people continue not to judge too much since we only get sound bytes of complete histories.  Good luck to each and everyone in whatever financial situation you are in.


TU711, EQ 731 , EX 706 (As of 12/13/14) - Personal Goal = 760

UTL 0-3% at any given time on intro rate cards

Gardening since 11-21-14































Frequent Contributor
shols44
Posts: 398
Registered: ‎11-03-2012
0

Re: Why do banks decline people for credit cards that have bankruptcy?

OP I've been where you are. I jumped in feet into the real estate acquisitions and sales in 2004. 300K in profit in the first 2 years! Over 200K in business and personal lines, I stretched myself made some bad mistakes and when the bubble bust so did my bank account. I dug even deeper for more years thinking the trend would surely reverse....long story short I filed BK a few years later. 

 

I've done a decent job rebuilding and I posted a while back  "While I ever be prime again?". I don't blame banks that won't lend to me. I certainly don't consider myself high risk for default. I make above 150K yearly, have low expenses and very few liabilities. My past "financial behavior" was a result of risk that I no longer hold so my past "misfortune" is certainly not predictive of my future financial outlook.  I PIF several times a week with the few lenders that have approved me while pushing 5-6k in monthly spend. Most importantly, I have learned my lesson and know a full rebuild take time.

 

OP, I'm not sure about this because your post got confusing, I SINCERELY HOPE YOU ARE NOT TRYING TO FINANCE YOUR NEW BUSINESS WITH PERSONAL CREDIT CARDS! This was the biggest mistake of my business life. I did it because I had the lines and I exhausted them to fund my business. DON'T DO IT! If I'm wrong in my assumptions, Apologies!

 

As for your lines, stop apping-Lock your credit reports and loose the passwords for the next 6 months., garden and focus on growing your capone products via the EO as they age. Build a relationship with a local CU that you verify is BK friendly at this point for you. This will payoff in the end. 


Starting Score: 501
Current Score: 706 EQ,TU 689,EX 686
Goal Score: 720

Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Why do banks decline people for credit cards that have bankruptcy?

[ Edited ]
+1 to what shols said.

Never use a credit card to fund any significant purchase, for personal or business, unless its 0% apr offer and you can pif before offer ends or just something you can pay off easily in a few months. Otherwise, the interests fees are ridiculous.

Anything else get a personal loan.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
DaBears
Posts: 3,930
Registered: ‎10-26-2012
0

Re: Why do banks decline people for credit cards that have bankruptcy?

Good afternoon everyone!!! Happy Monday. Just a friendly reminder lets keep in nice and fun on the forums. Everyone is entitled to their opinions. If anyone would like to PM for help and advise I'll be more than happy to reply. 

 

Have a good evening everyone!!!

 

DaBears

Established Member
mikey4833
Posts: 90
Registered: ‎01-26-2013
0

Re: Why do banks decline people for credit cards that have bankruptcy?

[ Edited ]

This issue drives me crazy so I took action on it and we'll see how many people sign my petition to get creditors not to be able to use bankruptcy against you after 4+ years 1,000,000 signatures I'm going for. Citi Declined me for Citi Simplictiy catrd even after executive office review just because of a 4 year old bankruptcy its sickning. Here is the link to sign the petition. Edited.


Starting Score: TU:599 EXP: 596 EQ: 595 Starting Year 2009
Current Score: TU:715 (685 FAKO) EXP:647 (673 FAKO) EQX: 637 (FAKO 615) - All on 04/24/13 In the garden until 05/2014 because too many inq and low AAoA 1.4 mo. My BK chap 7 will be 4 yrs old July 2013
Goal Score: 760+ across the board by next year July 2014 5 yrs after BK


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Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Why do banks decline people for credit cards that have bankruptcy?

[ Edited ]

mikey4833 wrote:

This issue drives me crazy so I took action on it and we'll see how many people sign my petition to get creditors not to be able to use bankruptcy against you after 4+ years 1,000,000 signatures I'm going for. Citi Declined me for Citi Simplictiy catrd even after executive office review just because of a 4 year old bankruptcy its sickning. Here is the link to sign the petition. Edited


you can't have your cake and eat it too.

on the other spectrum, people (and banks) will be petitioning for all past BK to repay back all their bad debts and not qualify for any new cards, just so that it will lower the rates and cost for people who have been financially responsible.

 

in some countries, you are NOT allowed to have any financial products and own any property and valuable assets for 20 years after filing BK, and it's also a crime in some countries to not be able to repay your debt. IMO i think the law is fine as it is. This country gives people a 2nd chance, and even a 3rd sometimes. Look at the BK period as a time for you to grow and be mature about your finances.

 

You cannot expect lenders to lend you money right after you burned them.  

 


hausfrau wrote:
This is why it is called "rebuilding". One brick at a time that YOU have to place yourself. It isn't AMEX's job to just hand you a house.



+1 to this. You had a house, and you (or some unfortunate disaster) tore it down. So, you gotta rebuild.

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).

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