topic Re: What does “recent” mean in a credit decision? in Bankruptcy

What does “recent” mean in a credit decision?

Anonymous — Sun, 23 Feb 2020 03:59:25 GMT

Hi all

just a quick question. I'm 11 months post BK7 and wanted to know the meaning of "recent " in credit decisions like the one below.

I applied for an Apple Card (I do it every 6 weeks or so as my score improves, and it is always a soft pull, so no risk!) because it gives me a free TU FICO 9 score each time. Here's what I got tonight. What's does "recent" mean? 1 year? 2 years? 5 years?

Thanks!!

— —

"Thank you for your interest in Apple Card. Goldman Sachs Bank USA has reviewed your application, and it was not approved at this time because:

You have recently been past due
You have recently filed for bankruptcy
You have recently filed for bankruptcy or experienced another negative public record on the credit file"

Re: What does “recent” mean in a credit decision?

mikesonthemend — Sun, 23 Feb 2020 04:21:11 GMT

I don't know if there are enough data points on Goldman and Apple to say where this cards is concerned. Typically, it means whatever the lendor wants it to mean.

Re: What does “recent” mean in a credit decision?

Azuieldrago — Sun, 23 Feb 2020 05:12:17 GMT

Most "recent" definitions will fall between 1-2yrs lenders choice. I can see the BK having a longer "recent" just because of the seriousness of it. But probably nothing past 5 yrs. Atleast with a Chp7 vs Ch13 (which could be less, since debts were repaid.)

Re: What does “recent” mean in a credit decision?

Anonymous — Sun, 23 Feb 2020 07:38:05 GMT

In lending/credit "recent" usually means within the last 2 years.

Re: What does “recent” mean in a credit decision?

Anonymous — Sun, 23 Feb 2020 07:43:44 GMT

@mikesonthemend wrote:
I don't know if there are enough data points on Goldman and Apple to say where this cards is concerned. Typically, it means whatever the lendor wants it to mean.

Maybe not on myfico. But because of the popularity of Apple as a brand, there are more data points in 6 months than even the most popular cards here. There is a very comprehensive collection of data points over on Reddit collected into one doc.

Re: What does “recent” mean in a credit decision?

Anonymous — Sun, 23 Feb 2020 19:25:53 GMT

Thanks everyone for your feedback. I just feel like "recently " is a legal yet utterly ambiguous word. I realize credit is not a race but a marathon @firemedic but it would be great to have a goal in mind like, "OK I know that 'recent BK7' means 2 years, so I'll avoid banks that say that." I think it is Citi that states clearly— even for its secured card--that a BK had to be 2+ years old. Is that a definition for "recent?"

Re: What does “recent” mean in a credit decision?

Azuieldrago — Mon, 24 Feb 2020 00:07:45 GMT

From what I understand, CITI doesn't like anyone with a BK on their report.

Re: What does “recent” mean in a credit decision?

Anonymous — Mon, 24 Feb 2020 01:21:42 GMT

@Azuieldrago wrote:
From what I understand, CITI doesn't like anyone with a BK on their report.

I found this on Citi’s Secured Card site :

"Apply for the Card

You must meet our credit qualification criteria, which includes a review of your income and your debt.
We’ll use the information you provide to help determine whether you’re approved for a Citi Secured Card account, subject to receipt of collateral. (“Collateral” refers to your security deposit, which is equal to your credit limit.)
You must not have any bankruptcy history in the last two years."

Re: What does “recent” mean in a credit decision?

Azuieldrago — Mon, 24 Feb 2020 06:27:53 GMT

@Anonymous wrote:
@Azuieldrago wrote:
From what I understand, CITI doesn't like anyone with a BK on their report.
I found this on Citi’s Secured Card site :

"Apply for the Card
You must meet our credit qualification criteria, which includes a review of your income and your debt.
We’ll use the information you provide to help determine whether you’re approved for a Citi Secured Card account, subject to receipt of collateral. (“Collateral” refers to your security deposit, which is equal to your credit limit.)
You must not have any bankruptcy history in the last two years."

I am just going by what the data points given here is. Everything I've read says, not gonna happen until after the BK falls off your reports. Same with Chase. Others may be able to chime in if they have different results.

Re: What does “recent” mean in a credit decision?

sznnmnt — Mon, 24 Feb 2020 16:34:32 GMT

I have a BK from 2015. I applied for a Citi card, the prestige, I got turned down probably because of the BK itself although they give you very obscure language to make you wonder what it was about. I mean: Can't they just be direct and stop beating around the bush already?

i called recon and the advice was to open a secured card. Secured cards turn into unsecure in ~ 18 months if you remain pristine. I've also heard the approve after 5years bk w/out secured card process. I'm so close to 5 years that I won't tie up funds in a secured card.

Re: What does “recent” mean in a credit decision?

Anonymous — Mon, 24 Feb 2020 17:16:15 GMT

@sznnmnt wrote:
I have a BK from 2015. I applied for a Citi card, the prestige, I got turned down probably because of the BK itself although they give you very obscure language to make you wonder what it was about. I mean: Can't they just be direct and stop beating around the bush already?

i called recon and the advice was to open a secured card. Secured cards turn into unsecure in ~ 18 months if you remain pristine. I've also heard the approve after 5years bk w/out secured card process. I'm so close to 5 years that I won't tie up funds in a secured card.

Do it seems that in the case of Citi, 25 months out (2 years 1 month) you can apply for a citi secured card. If you are coming up on five years, wait until the 61st month then apply for the unsecured card. I'd be curious if you do this to report back.

again I just want to understand what "recent" means. I feel like it depends on the bank, but could be divided into secured and unsecured cards. Then some banks see "recent " in different ways.

Re: What does “recent” mean in a credit decision?

Anonymous — Mon, 24 Feb 2020 17:31:17 GMT

@Azuieldrago wrote:
@Anonymous wrote:
@Azuieldrago wrote:
From what I understand, CITI doesn't like anyone with a BK on their report.
I found this on Citi’s Secured Card site :

"Apply for the Card
You must meet our credit qualification criteria, which includes a review of your income and your debt.
We’ll use the information you provide to help determine whether you’re approved for a Citi Secured Card account, subject to receipt of collateral. (“Collateral” refers to your security deposit, which is equal to your credit limit.)
You must not have any bankruptcy history in the last two years."
I am just going by what the data points given here is. Everything I've read says, not gonna happen until after the BK falls off your reports. Same with Chase. Others may be able to chime in if they have different results.

Getting a bit off topic here, but I have a Citi card (not secured) with a 2.5 yo bankruptcy. If you go to the "approvals" section and type in the search, Citi and BK you will see I am not the only one. Lots of people have Citi cards with BK showing and less than 5 years. The big BK friendly thread is a bit dated but even that thread mentions seeing approvals at 3 years post BK. Banks do not make UW changes public usually but the data points in the approvals thread go back a few years.

Re: What does “recent” mean in a credit decision?

Azuieldrago — Tue, 25 Feb 2020 06:35:51 GMT

See, told ya others with better info would chime in. My info was based on what the most given answer was. But as always, YMMV. Back to topic, of course its going to be lenders choice. They are the house with the cards. (No pun intended.) So its always house rules.