Post BK 7 12mths scores are not moving, denial is common. What to do next?

[Anonymous]

So I filed for BK7 after I got in trouble with payday loans. I have since reestablished store cards with comenity bank 3 cards with low limits of $300 or less, utilization is 30% pr less across the board or o balance, Merrick bank $200, US Bank $250, Open Sky $250 all just shy of a year old. 100% on time payments, no collections. However I cannot approved for any loans anywhere I keep receiving denial letters stataing I have excessive inquiry, BK and low limit accounts to prove credit worthiness. I was married in June and we have a load of small persoanl loans in my husbands name (our credit and bank accounts have not been merged since marriage). I would like one loan to consolidate all the small high interest loans and get back to establishing credit. I have tried Lend Up, Main One Finanical, Oportun Loans and Mariner Finance in Illinois all denied. The one thing i find interesting is all the scores are completely different in the denial letter and some use a 4th credit agency I have never heard of Clarity Services, that company I feel has inaccurate information and I have requested the copy of my report waiting on the that now. The 3 main agencies show nothing major except the bankruptcy so i am confused why I am not seeing offers for credit, and more importantly why I am being turned down. Any ideas out there? BK was discharged April 2016. At a loss in illinois. 

[Anonymous]

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@Anonymous wrote:

So I filed for BK7 after I got in trouble with payday loans. I have since reestablished store cards with comenity bank 3 cards with low limits of $300 or less, utilization is 30% pr less across the board or o balance, Merrick bank $200, US Bank $250, Open Sky $250 all just shy of a year old. 100% on time payments, no collections. However I cannot approved for any loans anywhere I keep receiving denial letters stataing I have excessive inquiry, BK and low limit accounts to prove credit worthiness. I was married in June and we have a load of small persoanl loans in my husbands name (our credit and bank accounts have not been merged since marriage). I would like one loan to consolidate all the small high interest loans and get back to establishing credit. I have tried Lend Up, Main One Finanical, Oportun Loans and Mariner Finance in Illinois all denied. The one thing i find interesting is all the scores are completely different in the denial letter and some use a 4th credit agency I have never heard of Clarity Services, that company I feel has inaccurate information and I have requested the copy of my report waiting on the that now. The 3 main agencies show nothing major except the bankruptcy so i am confused why I am not seeing offers for credit, and more importantly why I am being turned down. Any ideas out there? BK was discharged April 2016. At a loss in illinois. 

Six new credit accounts in 1 year and tons of inquiries. It appears to lenders as though you are reckless and desperate for credit and they are scared of you.

You need to stop applying at once and garden for a year. 

Make sure all cards report $0 each month except for one that you let report a small balance.

DO NOT APPLY FOR ANYTHING FOR A YEAR.

When the time comes to apply for new credit, you need to do your research here and apply only with lenders that are BK friendly so you don't burn inquiries on things you have no chance of getting approved for.

Consolidation loans do more harm than good most times. Your husband has a budget problem, not a high interest problem. Whip your budget into shape, economize down to the bare essentials and just get them paid off where they sit ASAP.

[Anonymous]

SteelerNYC, I appreciate the feedback and guidance. I am a Realtor and credit is needed to get by. I need atleast one card I can rely on in emergencys with a higher limit. Any suggestions on that card in 12 months as you suggested. Where did you start to rebuild? 

[medicgrrl]

Are you eligible for NFCU?  PenFed is another you can try.  Did you include Cap1 in your BK?

[Anonymous]

Hi Medicgrrl. I tried Penfed and denied. Ineligible for NFCU. I did include Cap 1 in BK. Any other thoughts greatly appreciated.

[medicgrrl]

First, I would try to stay away from the consumer finance companies.  They'll actually negatively affect your credit.

Second, are you keeping individual utilization less than 29% for reporting purposes?

Third, is your husband able to consolidate without you?  Maybe he can obtain a loan thru PenFed?  How long ago did you apply with them?

Fourth, Cap1 will let you back in after a year but it'll probably be another low limit so I wouldn't go that route since you IIB.

 Have you read the BK friendly cards thread?  What about Discover? Were they IIB?

[Anonymous]

Utilization under 20% across the board. 100% on time payment. I tried Penfed just last month. I could have my husband apply and see where it goes. Discover has denied me as well. Not sure what is going on with my credit that all these companies are declining me. I see so many threads where people apply weeks out of BK 7 and approved. So depressing.

[medicgrrl]

I would try asking Penfed for a reconsideration.  Explain that you realize you've made mistakes by applying for so many new cards but you're really just wanting to find a solid financial institution to build a relationship with.  I'm guessing that the number of new accounts has scared them off.  They may reconsider for a small card but it'll grow pretty quickly.

As for your husband's small loans, anyway to employ the snowball method and get them paid off without consolidation?  Do you have any installment loans in your name?

[Anonymous]

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@Anonymous wrote:

SteelerNYC, I appreciate the feedback and guidance. I am a Realtor and credit is needed to get by. I need atleast one card I can rely on in emergencys with a higher limit. Any suggestions on that card in 12 months as you suggested. Where did you start to rebuild? 

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You need savings to rely on in an emergency . . not credit.

I started with Credit One  ($1500 SL) a month or two after discharge. Probably four months after that came the Target Red Card ($300 or $500 SL . .can't recall.). Four months or so after that, I received on offer from Merrick Bank ($700 SL doubled to $1400 after 6 months of on time payments.) 1 year and 1 month post discharge I apped for Discover (basically the only major bank I didn't burn in my BK) and received a $2000 SL. These were literally my ONLY inquiries during the first yearish of rebuilding which I think helped matters a lot.

1 year 10 months post discharge, I joined Navy Federal ($2k CLOC, $1k Cash Rewards) and PenFed ($2k Cash Rewards.) My utilization as AZEO when applying. 

PenFed gave me a CLI just shy of 3 months to $18k. Navy gave me a CLI just after 3 months to $20k.

Then I closed CreditOne ($2750 limit by this time) and Merrick ($1700) 

My Target card now sits at $1300 and Discover has grown to $4400.

I got a little trigger happy myself and apped for the Navy Amex when it came out last month and was denied. I understand, because my $20k credit line is still new and I strategically used a 0% offer from PenFed to achieve some other financial goals (and have automatic payments set up every two weeks to ensure it's paid off before interest hits) and have a somewhat hefty balance reporting there.

Throughout all of this, my student (installment mix) loans were paid on time. 13 year history . . two 30 day lates before my BK.

You'll get there as well. Just have to sit tight until those inquiries fall off. Good luck!

[Shooting-For-800]

My advice ---

You keep getting all these denial letters talking about inquiries...all these companies are adding inquiries!

STOP with all the predator companies.  This is how you got into your other mess.

No loans, no payday advances, no pawn shops, no new credit cards, nothing.

Pay what you have to pay now and your credit will build.

Just pay each one of the existing loans off one at a time...either lowest balance first (accomplishment) or highest interest first (less costs).

6-12 months will no mess ups and you can get a real Capital One credit card with a normal AF and start building real credit.

You have to quit looking at credit as a fix for another problem.

Credit has to be used as a tool, not a Band Aid.

No trying to be harsh, just clear.