topic Re: Current Chapter 13 - obtaining credit - scores rising! in Credit Cards

Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 01:47:14 GMT

I want to let everyone know that I am SOOOO glad that I found myfico.com! It was by default and thru the recent class action settlement. I received 3 months of Score Watch free. So I became obsessed with the boards. Well, before I go into all of that - let me give you a snapshot of my current situation:

Chapter 7 BK - 3/02 - discharged 7/02 (I had to forego some accounts that I'd had for years....AMEX green, Discover, Dillard's, Macy's, JC Penney's, Chase, Citi Plat Select, Citi Dividends, Shell, Texaco, Vic Sec's, NY&Co, Limited, Old Navy, Zales, Phillips 66....) Basically had too much credit card debt and was sinking FAST!

Chapter 13 BK - 1/07 - currently still in

Between the Chapter 7 and Chapter 13 (5 years) sold my previous home and bought a new one in '05. I obtained new credit cards (sub prime - First Premier, Orchard) and did okay for a while, but I had some family emergencies, expensive car repairs and other unforeseens and once again I slipped and started being late on some CC payments and started spiraling out of control again. My scores were in the very low 500's shortly after filing Chapter 13 roughly 16 months ago.

Since that time, I have obtained the following cards, in this order:

New Millenum Bank ($300 CL secured) March '07

Orchard (Started with a $500 CL & with good payments my CL is now $800)

Salute Visa (Started with a $400 CL and with good history CL is now $700)

I hadn't applied for credit since obtaining these cards above and rarely checked my credit scores because I just knew they were tanked and I didn't want to be even MORE depressed. I just continued to pay 3 credit cards on time, double or triple the min payment and kept the util fairly low.

When I joined Score Watch on 4/3/08 I looked at my scores and was ASTONISHED!!!! I had the widest grin on my face. Granted, they're not like they once were, but it was a drastic improvement and proved that paying on time and being patient pays off!

My scores are now:

Equifax - 595 (up from 592 on 4/3/08 when I joined. Got a msg today that I'd gained +3 pts!)

TransUnion - 612

Experian - 602

I figured that since I'd been patient for a year, it was time to try out some of the BK friendly cards that you guys talked sooo much about. I would log on to this forum and browse for HOURS on end and I still do. I researched, pondered and finally said, "WHAT THE HECK, JUST DO IT!" So, with that said, here are the cards I've obtained in the last 2 weeks:

Hooters $600 CL (they gave me the 7-10 day message when I applied - I wasn't hopeful, and when I called twice they told me it was still under review - got home today and it was in the mailbox!!!!)

Crown Jewelers $1,500 CL (I know you have to use it for them to report - I will buy something cheap soon and pay it off in a few months)

Orchard MC $500 CL (I now have two cards with them. By the way, they MUST be BK friend and don't blacklist because I've included them in both of my BK's and they immediately gave me a card after filing each time!)

Credit One $350 CL (This is the lousiest limit I've had, but I'll take it! It'll help me!)

I applied and was turned down for Juniper.

I've applied for Target but they gave me the 2 week message, so I'm straddling the fence on that one.

I applied for Discover following a link in one of the forums thinking they'd re-direct me to the HSBC Discover, but they didn't - just a flat denial.

I applied with the soft pull on BOA, but wasn't offered anything - I was hoping for the $99/$500, but no such luck. When I applied with them shortly after filing BK last year for the SECURED card, they denied me and said they don't issue the cards if you have a BK. WOW - even a SECURED???? I bank with them and have a checking and substantial savings - I was a bit miffed at that.

I applied with the soft pull on Spiegel, but received a denial.

Even in the midst of the few denials, I still feel very successful in obtaining the cards that I did get. I wouldn't have known about them had it not been for the FICO FAMILY! Thanks guys and keep the tips coming!!!!!!!!!!!! Any advice or easy cards to obtain are welcome! Door's open!

TU - 612

EX - 601

EQ - 595

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 05:26:57 GMT

Since this post, I've applied to Kay's Jewelers and was denied. Then the strangest thing happened. As I described above, I was denied instantly on line by Discover about a week ago. Well, tonight I received an email from Discover that says:

Dear :

Thank you for your recent Discover(R) Card application. We are
currently reviewing your request and need some additional information
to continue processing. Please call us toll free at 866-421-0122,
Mon-Fri 8am-Midnight ET, Sat-Sun 9am-9pm so we can get this necessary
information from you.

We appreciate your interest in Discover Card and look forward
to hearing from you. If you have already been in contact with our
office, please disregard this email.

Your reference number is

Sincerely,

New Accounts Department
DFS Services LLC

Guys, WHAT does this mean? Do you think they're reconsidering? Do I have a chance with my scores??? The Discover card that I IIB back in '02 has since fallen off of my report. Feedback, please!!!!!!

Re: Current Chapter 13 - obtaining credit - scores rising!

diva0969 — Fri, 09 May 2008 13:43:39 GMT

Hi,

I don't want to burst your bubble, but you do know that you aren't supposed to apply for new credit while you are currently in BK? Your app spree might tip off your creditors and you may find yourself in major trouble with your trustee. I've recently discharged a Chap 13 so I do understand the need to apply for new credit and try to increase your scores, but with two BKs on your credit history you may want to be a little more careful.

I hope everything continues to work out!

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 15:02:15 GMT

And I certainly hope that you have learned from 2 bk's now and will take the necessary steps to limit your debt so you don't get in that kind of financial trouble again.

I filed last July and have vowed NEVER EVER to get myself in that kind of bind again. The year leading up to the BK filing was the worst year of my life.

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 15:08:41 GMT

You didn't burst my bubble at all. I'm well aware of what you're saying. I won't be in the BK 13 much longer. I'm refinancing my house and will pay the BK off and get my discharge. That's the plan in the next few months. Thanks - good looking out!

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 15:10:33 GMT

Yes, Boscoe - believe me - I've learned. The first BK was totally my fault, but the second one was due to unforeseen circumstances. But at any rate, I never want to go thru that hell again! My DTI is very low and I make great money, so now I will manage that money and credit to the fullest for maxium results! Best of luck to you as well!!!

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 15:11:06 GMT

I meant "maximum". LOL

Re: Current Chapter 13 - obtaining credit - scores rising!

diva0969 — Fri, 09 May 2008 15:25:47 GMT

I know exactly how you feel. I was discharged from a 13 last year and I will never allow myself to get behind in my bills again. If I knew then what I know now, I would never have filed. It was a hard lesson learned, but I'm the better for it.

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 16:23:48 GMT

I have a serious problem with your cavalier attitude towards your situation. Has it occurred to you that you filed for BK TWICE! in less than 10 years? HELLO! Earth to your brain! I'm not judging but you seriously need to go to Debtor's Anonymous or some type of support group to help you learn how to spend your money, and why you constantly spend. Plus, you are applying for MORE CREDIT!!! why? Why do you need a card to a jewelry store? They take VISA, and Mastercard you know. I think you are using this as a scapegoat. When you get in over your head, you know that you can file. It's something to think about.

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 16:33:33 GMT

Sorry Dani that you've misconstrued my attitude. I'm as humble as they come. Yes, true, I've filed BK twice in 10 years, but without knowing my specific circumstances, how can you judge me? I stated that the first time I filed (BK 7) it was TOTALLY my fault, I was in over my head in credit card debt and was sinking fast. So the story goes. The second time I filed (BK 13) it was due to my mother becoming ill, near death - me being her ONLY support system. So do I let my mom sink or do I try to help her? You bet your bottom dollar I helped her and would do it again! In the process of helping her with medical bills, her home and other expenses, my OWN responsibilities fell behind, including my mortgage payment. In order to keep a roof over my and my son's head, I filed BK to reorganize and pay all of the arrearages that I owed my creditors. So tell me WHY you don't think I should try to rebuild myself? I don't understand your condescending attitude. You act like I'm some lazy, scum of the earth, non-working individual. NOT! I've worked consistently since I was 16 years old (will be 40 in 6 wks), I've always paid my bills and two times in my life I've had these hardships......sooooo, that makes my attitude cavalier? I don't get that, but you're entitled to your own opinion.

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 16:52:21 GMT

My apologies for jumping the gun. I'm so frustrated right now with my financial situation. That's all. I never thought I would be here but life is full of twists and turns. I still don't understand why you need more than 2 cards. You are potentially setting yourself up for more disaster. I wish you the best, and your story is actually inspiring. There's life after BK!!

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Fri, 09 May 2008 17:34:12 GMT

No problem, because I feel your frustration as well. Believe me! There is hope and things will get better if we remain persistent and practice good behavior and control of our finances and the credit that is granted/extended to us. I only carry my Orchard card and New Milleneum secured card in my wallet. The rest are in the original envelopes stored away out of sight and mind. I just wanted a few more cards for utilization improvement, that's all. I'm done. I will just sit back and continue to pay my bills on or before time and keep my limits low. I wish you the best of luck in your financial and credit endeavors. Keep your head up!

Re: Current Chapter 13 - obtaining credit - scores rising!

TKDALLSTAR — Sat, 10 May 2008 23:37:42 GMT

30ross30, Your perseverance is honorable. Good job working with your current cards and letting them age. I too was once in your position, though I didn't go through BK(s). My credit scores were in the high 400's, in August 2006, after I ran up much credit card debt, and some cards being charged off as bad debt. Since then I have been able to get most of the negative marks deleted off my credit reports. My scores are now in the upper mid 600's, and has really helped. Good luck and do continue making positive credit decisions..

Re: Current Chapter 13 - obtaining credit - scores rising!

Anonymous — Sun, 11 May 2008 06:33:54 GMT

TKDALLSTAR - thanks so much for the kind words...I really, really appreciate it. I'm so thankful that I found this forum. It has been a tremendous help and I feel like I'm addicted! I stay on for hours just researching and gathering a wealth of information. It's good to hear and receive advice from people who are or have been in your shoes and know exactly what you're facing or going thru. It means a LOT! Thanks again......

Re: Current Chapter 13 - obtaining credit - scores rising!

Uniqua — Sun, 11 May 2008 11:35:06 GMT

Hello, 30ross30:

Sounds like you have a plan. However, I note that you plan on refinancing your home within the next "few months." That is a good idea and I certainly encourage you to do so, but you still have to worry about the BK trustee finding out about the new debt you've incurred before that time. This may cause your present Ch 13 BK to be dismissed and refinancing after that may prove to be extremely difficult. Applying for credit excessively within a short period of time will decrease your FICO score tremendously. Not to mention you already have two BKs on your CRs. Why put yourself in that position especially when you know you want to refinance your home in the near future? IMHO, you may be getting yourself into a situation I don't think you are prepared for. I would lay off the credit/charge cards and focus on improving your FICO scores so you will have no problems with your future plans.

All the best!