cancel
Showing results for 
Search instead for 
Did you mean: 

How is it that credit card co's don't catch on to this ....

tag
Blodreina
Established Contributor

Re: How is it that credit card co's don't catch on to this ....


@Anonymous wrote:

@chwebb1 wrote:

@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 


 

Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015


Although I understand your point, I'm fairly sure if someone went out and bought a boat on a CC, the BK courts would raise at least one eyebrow at that purchase. I know of someone who had $5000 in gardening work done, used their CCs for it with the full intention to declare BK weeks later, and the BK court wouldn't allow this person to declare BK because they had just spent all of that money on gardening work.

 

But I think that I would be a lot less likely to use my CCs if the bank could say "Oh, I see that you're using your card to buy groceries, we won't be able to collect our money/goods if you declare BK, transaction declined". And to be quite honest, it doesn't really seem to be any of the bank's business what I spend my money on as long as I pay the bill when it comes. But then again, I also don't generally charge things to my CCs that I can't afford to PIF when the bill comes.



Maybe you , me and myfico users are more responsible or have learned to be more responsible using our cc's  . But it kind of sucks when you see people fresh off BK getting a new house ( who cares about apr on the loan) the fact that they ot a new house after destroying there credit is unfair to those that had a couple bumps on the road and didint BK but because o  couple blemishes can't get a new car or anything, now a days you can't even get. Decent job be without a good credit score !!!!


This.  I always wondered how people who have declared BK seem to recover so quickly.

Message 11 of 36
chwebb1
Established Contributor

Re: How is it that credit card co's don't catch on to this ....

I would think that most people care about what APR they are given on loans since that directly affects how much interest you pay over the life of the loan.

 

Something else to consider is that people right out of BK won't be able to get decent cards with usable limits. Most people out of BK  have secured cards, or cards like first  premier or credit one, and pay through the nose for that credit. And they get $300 or $500 credit limits. I don't know about you, but that kind of limit is completely useless to me, and I assume it's useless to most people.

 

Finally, if you burn a major bank, it may be many years in order to get back in.

 


@Anonymous wrote:

@chwebb1 wrote:

@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 


 

Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015


Although I understand your point, I'm fairly sure if someone went out and bought a boat on a CC, the BK courts would raise at least one eyebrow at that purchase. I know of someone who had $5000 in gardening work done, used their CCs for it with the full intention to declare BK weeks later, and the BK court wouldn't allow this person to declare BK because they had just spent all of that money on gardening work.

 

But I think that I would be a lot less likely to use my CCs if the bank could say "Oh, I see that you're using your card to buy groceries, we won't be able to collect our money/goods if you declare BK, transaction declined". And to be quite honest, it doesn't really seem to be any of the bank's business what I spend my money on as long as I pay the bill when it comes. But then again, I also don't generally charge things to my CCs that I can't afford to PIF when the bill comes.



Maybe you , me and myfico users are more responsible or have learned to be more responsible using our cc's  . But it kind of sucks when you see people fresh off BK getting a new house ( who cares about apr on the loan) the fact that they ot a new house after destroying there credit is unfair to those that had a couple bumps on the road and didint BK but because o  couple blemishes can't get a new car or anything, now a days you can't even get. Decent job be without a good credit score !!!!


 

 

 

 

 photo NUS000000180_160X101_STRAIGHT.gif photo DISCOVER_IT_LG.gif photo card_1.png photo night-launch.png photo NUS000000012_160X101_STRAIGHT.gif photo bankamericard-better-balance-rewards-credit-card-small.png
$15000 ........... $12500 ............ $11750 ............ $10000 ........... $9400 ............ $5000 ............. $5000
In the Garden until at least November 2015
Message 12 of 36
Anonymous
Not applicable

Re: How is it that credit card co's don't catch on to this ....

If you play it right , you could have prime card with decent limits 2 years after BK . Its been done by A LOT of people on this forum and others .

Message 13 of 36
chwebb1
Established Contributor

Re: How is it that credit card co's don't catch on to this ....


@Anonymous wrote:

If you play it right , you could have prime card with decent limits 2 years after BK . Its been done by A LOT of people on this forum and others .


But I assume you have to deal with the likes of FirstPremier or CreditOne for those two years, right? Because as someone who hasn't gone through BK, it seems like the fees they charge are absolutely crazy. I don't ever see paying that much for a credit card, let alone one with a useless $300 or $500 limit.

 photo NUS000000180_160X101_STRAIGHT.gif photo DISCOVER_IT_LG.gif photo card_1.png photo night-launch.png photo NUS000000012_160X101_STRAIGHT.gif photo bankamericard-better-balance-rewards-credit-card-small.png
$15000 ........... $12500 ............ $11750 ............ $10000 ........... $9400 ............ $5000 ............. $5000
In the Garden until at least November 2015
Message 14 of 36
Anonymous
Not applicable

Re: How is it that credit card co's don't catch on to this ....

I have heard of Capital One and Barclays being BK friendly, as long as they know you can't declare again for another 7-10 years.  

Message 15 of 36
Trivolve
Contributor

Re: How is it that credit card co's don't catch on to this ....


@mikelo22 wrote:

@Anonymous wrote:

people applying for a ton of credit cards buying a lot of stuff sometimes very expensive stuff like rolex's and boats and then BK everything ., would the creditors be able to take away the boat and Rolex , cause I've seen people leave BK pretty good , keeps 2 cars , house , everything , from far away you would have never know the person just BK ! I think all cards should be (NPSL) and then be at the creditors discretion to approve or not approve the purchases , like amex charge , visa sig. 


 

Citi Double Cash 1k, CSP 5k , Chase United 5k , BOFA Cash 4.5k , Discover it 1k , Chase Slate 2k , Chase Freedom 1k , Hilton Amex 3k , U.S. Airways 7.5k , Amazon Store $500
Gardening from now on last app 2/10/2015


The assets you listed like a boat, rolex, etc would very likely be liquidated to the creditors. 

 

Yes, there are ways to hide assets, like if such an item was a "gift" from a friend/family member, etc. But even this is difficult as there will be holds on all your bank accounts and creditors' attorneys and the Trustee will be poring over every single credit transaction/bank withdrawal that you make. I work at a firm that deals with creditors' rights in bankruptcy and you wouldn't believe the kinds of things people try to pull during proceedings. But rest assured, the BK Trustee is going to be very thorough and there are very serious repercussions if you're caught trying to hide away something. 

 

There was one case several years back where a person tried to hide over $400K in merchandise behind a "fake" wall in a warehouse he owned. Rest assured, it was discovered and he is now behind bars for that and many other criminal things he attempted.

 

So what you describe is, shall I say, a popular archetype, but it's really nothing more than a straw man. That kind of stuff doesn't happen in BK.


What about charge-off? I always wondered if someone could do what OP described and hide for 7 years after the debt has been CO, then the statue of limitations on the debt would have expired and the CO would have dropped off the credit report

[Total CL: $97K] Citi Forward, BoA BankAmericard Travel Rewards, Discover It, Chase Freedom, Chase Hyatt, AMEX Blue Cash, AMEX Hilton Hhonors, Chase Sapphire Preferred, Citi Thankyou Preferred, Barclaycard Arrival Plus, AMEX Platinum, Chase IHG
Message 16 of 36
Kostya1992
Established Contributor

Re: How is it that credit card co's don't catch on to this ....

You hire a BK lawyer and they tell you exactly what to do to keep everything.

TU08 FICO850
EX08 FICO850
EQ08 FICO850

Message 17 of 36
Anonymous
Not applicable

Re: How is it that credit card co's don't catch on to this ....


@chwebb1 wrote:

@Anonymous wrote:

If you play it right , you could have prime card with decent limits 2 years after BK . Its been done by A LOT of people on this forum and others .


But I assume you have to deal with the likes of FirstPremier or CreditOne for those two years, right? Because as someone who hasn't gone through BK, it seems like the fees they charge are absolutely crazy. I don't ever see paying that much for a credit card, let alone one with a useless $300 or $500 limit.


Not if you know better.

Message 18 of 36
northface28
Established Contributor

Re: How is it that credit card co's don't catch on to this ....


@Anonymous wrote:

@chwebb1 wrote:

@Anonymous wrote:

If you play it right , you could have prime card with decent limits 2 years after BK . Its been done by A LOT of people on this forum and others .


But I assume you have to deal with the likes of FirstPremier or CreditOne for those two years, right? Because as someone who hasn't gone through BK, it seems like the fees they charge are absolutely crazy. I don't ever see paying that much for a credit card, let alone one with a useless $300 or $500 limit.


Not if you know better.


Lot of misinformation in this thread. 

BK Discharged 9/11

Cap1 Quiksilver Visa Signature $41k| Discover IT $24k| Barclays Uber VISA $16.2k|BOA Cash Rewards $8.4k| BOA BBR $6k|AMEX Cash Magnet $12.8k|AMEX BCP $16.6k|Huntington Voice $5.5k|Citi Double Cash $5.7k| US Bank Cash+ $6.5k
Message 19 of 36
northface28
Established Contributor

Re: How is it that credit card co's don't catch on to this ....


@chwebb1 wrote:

@Anonymous wrote:

If you play it right , you could have prime card with decent limits 2 years after BK . Its been done by A LOT of people on this forum and others .


But I assume you have to deal with the likes of FirstPremier or CreditOne for those two years, right? Because as someone who hasn't gone through BK, it seems like the fees they charge are absolutely crazy. I don't ever see paying that much for a credit card, let alone one with a useless $300 or $500 limit.


If you know what youre doing, you wont ever have to touch either of those products and the only "useless" limit youll have is a secured card. Thats only if your income cannot support a high deposit on a secured card.

BK Discharged 9/11

Cap1 Quiksilver Visa Signature $41k| Discover IT $24k| Barclays Uber VISA $16.2k|BOA Cash Rewards $8.4k| BOA BBR $6k|AMEX Cash Magnet $12.8k|AMEX BCP $16.6k|Huntington Voice $5.5k|Citi Double Cash $5.7k| US Bank Cash+ $6.5k
Message 20 of 36
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.