topic Re: Can't get approved in Bankruptcy

Can't get approved

ProudMomof5 — Wed, 22 Aug 2012 20:09:25 GMT

This is crazy. I have been working on rebuilding my credit since I filed a Chapter 13 over a year ago. I was approved for one credit card last year and I have paid it on time every month. I'm getting a little frustrated though because when I spoke to a broker I was informed that I need more credit. How can I get new credit when I can't even get approved and if I have too many inquiries hit my credit report it will drop my score.

Re: Can't get approved

Anonymous — Wed, 22 Aug 2012 20:22:44 GMT

Have you tried getting secured cards?

Re: Can't get approved

Poorboi — Wed, 22 Aug 2012 22:45:29 GMT

Is your case discharged?

Re: Can't get approved

Poorboi — Wed, 22 Aug 2012 22:46:48 GMT

How long is your credit history

Re: Can't get approved

ProudMomof5 — Fri, 24 Aug 2012 18:34:25 GMT

I didn't try any secured credit cards. My question with those is, will they really help me rebuild my credit. My credit score has jumped over 100 points since I filed Chapter 13 last August. I'm only about 30 points away from 620. I really want to purchase a house within the next six months and I need to re-establish credit but I only have one credit card. I'm still paying my car note through my Chapter 13 but they aren't reporting it on my credit report anymore.

Do you think I can still use them as a tradeline even though they're not reporting on my credit report?

Re: Can't get approved

Poorboi — Sat, 25 Aug 2012 08:38:32 GMT

Talk to your attorney. Mine didnt even let me get a car to make it to work. I doubt if you can get a home while under chpt 13

Re: Can't get approved

Poorboi — Sat, 25 Aug 2012 08:40:36 GMT

Here in Illinois, you are not supposed to touch your credit reports without speaking with your attorney while under chpt 13

Re: Can't get approved

StartingOver10 — Sat, 25 Aug 2012 13:30:48 GMT

If you are going to buy a home while you are in a Ch 13, you do have to have permission of the trustee handling your BK. Naturally you would go through your attorney for the court's approval.

It is possible to get a mortgage loan in a Ch 13, but you would need to speak to a lender to find out their requirements.

Re: Can't get approved

ProudMomof5 — Mon, 27 Aug 2012 16:18:45 GMT

I've heard of people getting a house in a Chapter 13 with their trustee's permission. Hopefully he won't give me a hard time. Why can't you pull your own credit report while you're in a Chapter 13? That doesn't make sense to me. I need to know what's on my report to make sure everything is reporting correctly. I'm not trying to wait until five years go by and then I see a ton of stuff reporting wrong on my credit report and then it takes me another two years to fix it.

Re: Can't get approved

Anonymous — Mon, 27 Aug 2012 16:21:22 GMT

My BK7 was discharged on 8/21/2012 and i recieved a capital one visa 2,000 and credit one visa 1,500. Just try rebuilding and apply to sub prime lender i know from experience ($4 Million BK7) Good Luck

Re: Can't get approved

softballgirl29 — Tue, 28 Aug 2012 15:41:55 GMT

My bankruptcy was just discharged last week and I am wondering how long I should wait before attempting to apply for credit. I want to buy a house sometime in the next couple of years and I have heard that if you don't start rebuilding your credit right after your discharge that the process to get a mortgage could be substantial. Any advice or input regarding this is appreciated. The attorney gets the BK done but then I feel like I don't have the information to move forward and start rebuilding, the information he gave me was very vague.

Re: Can't get approved

Anonymous — Tue, 28 Aug 2012 20:15:27 GMT

I think the first thing you would want to do is get a copy of your reports and make sure everything is reporting properly as far as the accounts that were included in your BK. Then if all is good there you can start getting cards. Some get secured cards and some get unsecured cards to get things started. Was your BK a 7 or 13? This will make a difference on when you will be able to buy a house as well.

Re: Can't get approved

StartingLifeOver — Thu, 30 Aug 2012 01:02:18 GMT

@ProudMomof5--Yes, secured cards DO work!!! I'm a firm believer!! My credit scores have increased 100 pts in the last 8 months and only using one secured card.

@softballgirl29 --Congrats on the discharge!! You've made it out of debtor's prison!! Depending on the rules of your trustee, you probably could have already started to rebuild your credit. It really would have depended on the state and county you're in and the rules of the trustee as some are MUCH, MUCH, stricter than others. I don't see any reason why you can't get started right away--you've completed your plan. As of when I filed (September 2009) in NC, permission was only required from the trustee when desiring to finance anything over 1K. Due to this, I was able to get a secured card without going to my trustee. I also received a packet of information from my lawyer, telling me that I could begin rebuilding credit immediately and ways to go about doing so. You can purchase a home while still in Chapter 13 with trustee permission after 12 consecutive (timely) payments. I was told by a lender that as soon as I received my discharge from Chapter 13, I can begin right away. Of course, YMMV. I'm choosing to wait so I don't have to jump through the extra hoops. Just crossing my fingers in hopes that I receive my discharge paperwork quickly!

Re: Can't get approved

softballgirl29 — Thu, 30 Aug 2012 15:40:09 GMT

I did pull a copy of my reports. The only thing not reporting correctly was my car that I reaffirmed. When I contacted Chase, which is the lender for my car, they said that because there is a recision period of 60-days that it will report that way until after Sept 14th. On Sept 15th they will be moving it out of the bankruptcy department and into regular customer service again. At that point it should start reporting correctly on my CR's. I filed a Ch7. Do you think I should wait until the car loan begins reporting correctly before applying for credit cards? Thanks for your info!!

Re: Can't get approved

softballgirl29 — Thu, 30 Aug 2012 15:44:35 GMT

It is so good to hear that secured cards DO work!!! So many people have said that I should hold out for unsecured but my feeling was if a secured card will help begin the rebuilding process faster then it would be worth it! I filed a CH7 and was told that it would probably be two years before I would qualify for a mortgage. I was lucky enough to sell my house before the bankruptcy so I do not have a foreclosure or bk for any previous mortgages. Also, I reaffirmed my car loan since it is almost paid off with the hopes that it would be a good line of credit and help re-establish faster. I

I hope you receive your discharge paperwork soon!!!! Keep me posted and thank you so much for all your information!

Re: Can't get approved

ProudMomof5 — Thu, 30 Aug 2012 16:12:15 GMT

@luvmeirahbug, which secured card are you using? I noticed that when I filed my Chapter 13 that my car company stopped reporting on my credit report. They completely deleted the account from all three. I spoke to someone and he told me to ask them to put it back on there since it is still getting paid through my 13. I'm wondering would it help or hurt me if I did that because I had a few lates on there from over a year ago.

Re: Can't get approved

Anonymous — Thu, 30 Aug 2012 17:51:21 GMT

@SoftballGirl - Do not wait on your car to start reporting. Use the Capital One Preapproval to see if they will approve you for a card. You will not take a hit until you actually apply. Make sure it gives you an offer and does not say, "No offer but we suggest". I will rank in order the cards you should try. Be warned that you may have to "pay" for credit but they have a high approval rate. Do not try for others unless you get an offer in the mail.

1. Capital One (Preapproval)

2. Credit One (Processing Fee)

3. First Premier Credit (Processing Fee)

Re: Can't get approved

Guyatthebeach — Wed, 05 Sep 2012 02:09:58 GMT

I got two secured credit cards the day my bankruptcy was discharged. I got one from a local credit union and the other from PNC. My FICO score went up about 100 points in 6 months. I know if I can do it, you can too. It just take time, patience, and determination. I'm a firm believer in secured cards and second chances.

Re: Can't get approved

Poorboi — Wed, 05 Sep 2012 03:56:00 GMT

^ when I got three cards at one time my score dropped , it said reason was that I opened too many new credit accounts. did that happen to you?

Re: Can't get approved

Guyatthebeach — Wed, 05 Sep 2012 05:45:34 GMT

To be honest with you, it didn't affect my score at all. I opened both accounts the same day my bankruptcy was discharged. I had to give a copy of my discharge papers to both the bank and the credit union, because the Experian had not updated my credit report. My FICO score was 515 that day. Six months later, it floats between 619 and 628.

Now I do think it will go down, because my credit union approved me for an unsecured Visa. Unfortunately they gave me a new credit account number and made me close the secured card with them. I went from $2500 secured to $1000 unsecured. I'm waiting to hear if my bank approved my app for an unscured card. I also got approved for a Barclays Apple card for $2200. I hope my score only goes down about 35 points.

It's all good, because I don't plan on doing anything else to my credit until next year.