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How Did That Happen???

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Member

How Did That Happen???

Hi Everyone!

 

My Chapter 7 discharge date is today (filed in June pro se Woman Very Happy),although Pacer hasn't been updated as of yet. Anyway, I attempted to start the rebuilding process as listed in the guide "to 700.... on the forum. I submitted the prequalifier for Capital One- although I burned them for $600+ in BK- and was denied. This was done about a month ago, so I decided not to apply for anything else until I receive my discharge. Well I ended up having to apply for the Parent plus loan for my child today, expecting to be denied but worse case scenario he would receive the higher unsubsidized loan provided to independent students- he's a dependent. Well I was approved. Which shocked the mess out of me because I applied in January and was denied. Was this because of my BK? The award letter stated they pulled my credit via Equifax. Has this happened to anyone else? Will this help my credit rebuild since they report once the funds are disbursed to him? I also listed them in my Chapter 7 but I don't think they were removed- they're shouwing on my credit report as included in BK.  

Message 1 of 7
6 REPLIES 6
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Member

Re: How Did That Happen???

So out of 111 views, no one can provide insight to a question. Must be because I didn't insert "HELP" in the title.  #idigress 

Message 2 of 7
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Valued Contributor

Re: How Did That Happen???

I, probably along with the 111, have never even heard of parent plus loan...and usually noone will loan anything prior to BK discharge. Most do not respond if they have no advise to give.

TU fico08=822 08/24/20
EX fico08=816 08/24/20
EQ fico08=831 10/06/20
EX fico09=825 10/03/20
EQ fico bankcard08=852 07/28/20
TU Fico Bankcard 08=854 09/23/20
EQ NG1 fico=786 07/18/20
EQ Resilience index score=59 08/24/20
Unknown score from EX=784 used by Cap1 07/10/20
Message 3 of 7
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Frequent Contributor

Re: How Did That Happen???

The OP is referring to federal student loans that parents take out for their dependent students.

 

The Capital One denial is likely due to applying during an active bankruptcy prior to the discharge.

 

The Parent PLUS denial in January is likely due to bad credit which warranted bankruptcy. This could have involved a higher debt-to-income ratio which was lowered after said debts were discharged in bankruptcy. Only the lender will be able to answer this question, though.

 

The new Parent PLUS loan is likely to have a positive impact on your credit score only when repayments begin. 

 

Message 4 of 7
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Valued Contributor

Re: How Did That Happen???


@leonel9 wrote:

The OP is referring to federal student loans that parents take out for their dependent students.

 

The Capital One denial is likely due to applying during an active bankruptcy prior to the discharge.

 

The Parent PLUS denial in January is likely due to bad credit which warranted bankruptcy. This could have involved a higher debt-to-income ratio which was lowered after said debts were discharged in bankruptcy. Only the lender will be able to answer this question, though.

 

The new Parent PLUS loan is likely to have a positive impact on your credit score only when repayments begin. 

 


OP did not get denial on the parent plus!

TU fico08=822 08/24/20
EX fico08=816 08/24/20
EQ fico08=831 10/06/20
EX fico09=825 10/03/20
EQ fico bankcard08=852 07/28/20
TU Fico Bankcard 08=854 09/23/20
EQ NG1 fico=786 07/18/20
EQ Resilience index score=59 08/24/20
Unknown score from EX=784 used by Cap1 07/10/20
Message 5 of 7
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Valued Contributor

Re: How Did That Happen???

I just reread your post...I'm an idiot!!!

TU fico08=822 08/24/20
EX fico08=816 08/24/20
EQ fico08=831 10/06/20
EX fico09=825 10/03/20
EQ fico bankcard08=852 07/28/20
TU Fico Bankcard 08=854 09/23/20
EQ NG1 fico=786 07/18/20
EQ Resilience index score=59 08/24/20
Unknown score from EX=784 used by Cap1 07/10/20
Message 6 of 7
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Established Member

Re: How Did That Happen???

Your debt to income ratio is less now, after bankruptcy, and you can't file again for 10 years.  

 

Check Capitol One's pre-approval site in a couple weeks (give it time for the bankruptcy to settle and things to all report correctly, at 3 weeks out since my dischcarge I'm still waiting on the last dispute to come through).  At that point you might be able to get a secured card.

 

Glad you got the loan, though, hard to pay for the rest of the college education without it, sometimes.  Thank goodness my daughter is going to community college for a couple years, she'll have minimal loans for 2 years at least.  

Equifax FAKO 6/16 518 10/16 599 BK7 D/C 9/16
Rebuilding 1stPremier $300 Cap1 Secured $300 Kohls $300 Gamestop $250 VicSec $250 WomenWithin $250
Goals: 1)scores over 600 2)Cap1 or Barclay ~7/17 3)Autoloan ~12/17 4) Mortgage? Hopeful for the right house autumn - winter 2018
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