topic Re: Bankruptcy and then high limit cc's? how?! in Credit Cards

Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 02:10:19 GMT

Everywhere I look on here, people have filed bankruptcy and end up getting starter cards with huge limits...how?! I have a $47 collection from a medical bill i had no clue on and I can't even get a CLI on my chase freedom card which i've had for 3 years with a $2,000 CL and always made payments on time and currenlty only a 25% util as I just spend $500 in the last week. Explain how you guys are coming out of bankruptcy and getting this but I can't get squat and I have several tradelines with only 1 inquiry. 99% payment on time. missed one payment due to autopay failing! no charge-offs, no judgements. I have a car loan with $19,000 left and $65,000 in student loans all in good paying standing. My salary is 85k. What gives? i have 3 cc's and 3 store cards with less than 20% util overall. are my student loans what's killing me? if so, that's ridiculous.

I have montly activity on all accounts below.

Card Balance/CL

Nordstrom $0 / $2500

Jared $2854 / $4187

Chase $488 / $2000

Wells Fargo $0 / $1800

Macy's $0 / $1000

Buckle $0 / $680

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 02:24:25 GMT

.I don't think they are coming out of BK and immediately getting those limits, they are building them up. Have you requested increases on your current credit lines? If not, you may not get them unless you ask. If you have, it may be times for some new cards.

How long have you had your cards? That may have some bearing too.

Re: Bankruptcy and then high limit cc's? how?!

thelethargicage — Sat, 08 Oct 2016 02:24:32 GMT

Take everything on this board with a grain if salt.

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 02:36:57 GMT

Have you tried to get the medical bill paid and deleted? What about the late payment? Put yourself in the bank's shoes, if they see those things + bankruptcy it's not good.

Re: Bankruptcy and then high limit cc's? how?!

tussking — Sat, 08 Oct 2016 02:43:07 GMT

For reference :

I started 11 months with a $1000 Cap One card and a $500 NFCU Card...I have basically used my cards for every possible transaction I make in my life then paid them either in full or off in 30-90 days. In my case I have been very forunate.

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 03:00:08 GMT

@thelethargicage wrote:
Take everything on this board with a grain if salt.

I can't speak for everyone, but my story is accurate. And I have no reason to doubt any successful rebuilds on this forum. No reason to lie. Who would lie about BK?????

To the op: after my BK, I waited 2 years before getting any type of credit. After 2 years, I got an auto loan. 2 years later (this past summer 2016) I started getting revolvers. I currently have 6. Along with my perfect payments on my auto and student loans (54k), I think taking it slow was helpful to my profile.

The first two I applied for and actually activated have limits of 1k. I was also approved for credit one for $300 but I never activated. I believe that not opening that card actually helped me. The other revolvers have limits of 4K to 10k. I don't have any store cards or cobranded cards.

I was denied for Amex and Discover.

Fico TU 720 EQ 690 EX 708

I make low 6 figures.

Every profile is different. I don't compare myself to any other BK'r because I would be setting myself up for failure. I would be applying for every card a BK'r was approved for and I'd only be hurting myself with probably a lot of denials and inquiries.

Focus on your profile and the reasons for the denials. That will set yourself up for success!

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 03:11:49 GMT

@Anonymous wrote:
Have you tried to get the medical bill paid and deleted? What about the late payment? Put yourself in the bank's shoes, if they see those things + bankruptcy it's not good.

OP doesn't have a BK. Just asking how do people get such high limits post BK and they can't with one late and one medical bill.

Re: Bankruptcy and then high limit cc's? how?!

aussiesareforever — Sat, 08 Oct 2016 12:32:33 GMT

My BK journey has been long and I am extremely proud of how far I have come. As another poster said, I started off with a $300 credit limit, read as many posts on MyFico, worked hard to be smart with my money and eventually ended up where I am right now.

I think everybody can have the same story. BK or not. Giving time enough time to do its thing, getting enough credit knowledge and making smart decisions. High credit limits won't be too far away from you OP!

Re: Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 14:30:46 GMT

mrflyguy:

I dont' have a bankruptcy. I'm just asking how I can't get a decent credit card with my salary and no RECENT baddies, but people with BK can come out 2-3 years later and app for a cc and get a 15-50k limit.

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 15:25:36 GMT

I haven't read any BK post with your line up of cards with 15k+ starting out. Not saying it's never happened, but it's not common.

Wells Fargo can be stingy. Chase likes to see history of high limits with other lenders. Both of these lenders are somewhat conservative imo.

High limits begats high limits. You should look at lenders who have a reputation of opening the high limit door.

Have you pre-qualified for Cap1 Venture? Apped for Penfed? Or NFCU?

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 15:35:20 GMT

I'm a perfect example!!!

2012 went on dmp for 11 accounts. Paid off another 5 or 6 on my own which stayed open. Lost my job. Failed to pay off sears home depot and shell mastercard. Stuck them with about 9k.

Im in Toy limit hell, amex card opened 500 sl, bbva nba amex sl 1500. Honorable thing is what you do in human relationships. screw over Banks and declare bankruptcy is what you do with banks. I totally learned my lesson I shoulda declare bankruptcy.

Re: Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 15:50:18 GMT

Justagirl73,

I have not app'd at any of those because I was afraid of being denied due to the collection on my account since chase denied me a CLI with it. only a $47 collection that is from 2011. 1 late payment in ALL of my history. I guess I haven't tried to get credit too much in the last 3.5 years because I had a mortgage in 2012 and just sold my house this august and I had 2 car loans on my credit until recently when I paid one off and have another i'll be paying off end of this year before we move to Switzerland. I won't have an Auto loan on my credit which i'm worried about, even though we won't be in a country that has a credit system anywhere near resembling the US. I want to app for a card with no FTF's as I'll still be an american citizen living in a foreign country as an Expat. Overall since i started my credit 12 years ago, I haven't had many credit cards, and none with high limits. only store cards i have high limits on. Jared $4000, Nordstrom $2500. My highest CL on a credit card is $2000 for my chase freedom and $1800 for my Wells Fargo Platinum..both have 3.5 years long with only 1 auto credit limit increase. I wasn't taught at a young age about credit much. I wish they would require it since it's a huge part of one's life in the US. I'm 32 now and have had a mortgage, which i paid for 3.5 years on time every time but it was an FHA loan because my limited credit and 640 FICO score. I've had many auto loans and never missed a payment or defaulted. I have one collection for $47 and supposedly 3- 30 day lates that I can't find on my credit report. I only see 1, but the summary says 3. I feel like all the reports we have access to as consumers aren't even using the system that all lenders use to pull scores. It's quite frustrating. I've never app'd for a 'beginner' card. I don't want all these inquiries on my CR's until i can get all the dirt cleaned up which is VERY little. Not going to chance anything. Just being patient 'in the garden' as they call it. But I don't know how I'm going to be able to app for CC's while living abroad. I don't want to screw my chances when/if I come back to the US by not staying on top of my credit here. I really would love to get CLI'd on my Chase Freedom to get to the Chase Sapphire level so I can have a card with no FTF's.

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 15:50:39 GMT

I want to add that I had a 722 fico for about three weeks last year. I hover even 700 with high care credit balance. what good is it when you're walking around with proverbial face tattoo

Re: Bankruptcy and then high limit cc's? how?!

gdale6 — Sat, 08 Oct 2016 15:55:02 GMT

That $47 is a nuisance collection, anything under 100 is considered such. I would settle it though prior to apping for more.

For unpaid medical debt that is reporting on your CR:

1. Call the OC and see if you qualify for Charity Care
2. If not then ask that they recall the collection in exchange for full payment
3. Send the reporting CA a PFD offer
4. Google the HIPAA Process and contact its creator for help

Re: Bankruptcy and then high limit cc's? how?!

happypill — Sat, 08 Oct 2016 16:09:17 GMT

@Anonymous wrote:
I'm a perfect example!!!

2012 went on dmp for 11 accounts. Paid off another 5 or 6 on my own which stayed open. Lost my job. Failed to pay off sears home depot and shell mastercard. Stuck them with about 9k.

Im in Toy limit hell, amex card opened 500 sl, bbva nba amex sl 1500. Honorable thing is what you do in human relationships. screw over Banks and declare bankruptcy is what you do with banks. I totally learned my lesson I shoulda declare bankruptcy.

Totall agree with fordguy89, BK is definitely the faster option for credit recovery (not recommending BK and there are other considerations other than credit score recovery).

My personal story is that I was finishing grad school in 2009; had an excellent job lined up right until the company went into bankruptcy in late 2008 before I could join. I struggled to stay current with all my expenses, but two years later, my industry hadn't recovered, I hadn't been able to land full-time work and burned through all my savings. In 2010 I had to let all my cards go. It was about 3 years before I settled everything in chargeoff, and around 2015 I got my first unsecured credit after the crisis. It's taken another 1-2 years since then to build my limits back up, and I'm about 6 months away from the last baddies from 2010 dropping off my report, and at that time I'll try to get back in with the remaining creditors that I burned.

I too have noticed that recovery from BK is much quicker. People have reported getting cards within days or weeks after their BK went final, and quite a few people have built up huge limits within 2-3 years of BK. Certainly, there are some lenders that will not let you back in for the duration while a BK shows on your report, but many will let you in within 2 years of less, especially if you didn't burn them originally. I often wonder how things would have gone for me if I filed for BK back in 2008-2009 when my job evaporated, rather than fight for several years burning through savings, only to go through a much more protracted recovery process.

The intuitive thinking is that lenders would reward people for fighting to pay off their obligations, even if they ultimately fail; rather than throwing their hands up and surrendering through BK, but that's definitely not the case. For anyone that is struggling and after careful budgeting and review determines that there's no path to get out from under their debt, BK is probably a better solution than prolonged struggles.

Re: Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 16:09:34 GMT

The problem is it's already been paid! Should've said that before. ATG Credit won't take it off. I call them and ask nicely their reporting policies to the CRA's and they get angry and raise their voice and act like $47 is a crime even after my account is a zero balance. They got so mad at me questioning their policy last time and telling them that they haven't reported anything to the CRA's that they hung up on me. What other route can I go to get it off? I'm at a loss.

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 16:10:28 GMT

Go to Cap1 website and pre-qualify. Let me know if Venture or QS is pre approved.

Re: Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 16:20:18 GMT

Where do I pre-qualify on their site? Not finding it.

I found some pre-qualify thing and filled it out. It gave me the following results:

1) Capital One: Quicksilver one

2) Capital One: Platinum

What should I do?

Re: Bankruptcy and then high limit cc's? how?!

Anonymous — Sat, 08 Oct 2016 16:30:58 GMT

@MugenCivicSi83 wrote:
Where do I pre-qualify on their site? Not finding it.

I found some pre-qualify thing and filled it out. It gave me the following results:

1) Capital One: Quicksilver one
2) Capital One: Platinum

What should I do?

Nothing, I wanted to see if you would be offered one of the higher tiered cards. But at least you know that you could get a QS1 if you wanted it (no FTF). Many rebuilders start with that card and it can actually grow. In some cases you can pc it to the QS.

Re: Bankruptcy and then high limit cc's? how?!

MugenCivicSi83 — Sat, 08 Oct 2016 16:37:44 GMT

Ok. But in my experience every time i've applied in the past i've been denied. I just can't figure it out. Can I send send someone all the info on my CR? It's 42 pages long!