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Previous creditor in BK 7 - Will they approve me again?

ChiRealtor
New Member

Previous creditor in BK 7 - Will they approve me again?

When one files for BK 7 and includes let's say a Capital 1 Card or any department store credit card, will that same creditor usually approve you for credit in the future? After the bankruptcy is discharged should I apply with them again? My issue was keeping up with other major debt not my credit cards. I am filing for BK this week. Just planning ahead. 

Message 1 of 11
10 REPLIES 10
ojefferyo
Valued Contributor

Re: Previous creditor in BK 7 - Will they approve me again?


@ChiRealtor wrote:

When one files for BK 7 and includes let's say a Capital 1 Card or any department store credit card, will that same creditor usually approve you for credit in the future? After the bankruptcy is discharged should I apply with them again? My issue was keeping up with other major debt not my credit cards. I am filing for BK this week. Just planning ahead. 


Cap 1 is one of the first to forgive people. 

Amex Platinum, Amex Hilton HHonors Surpass, Chase Southwest Premier, Chase Marriott Rewards Premier, Discover IT, Sony Visa, Barclay Arrival+ MC, Cabela Visa, Walmart SC, Amazon SC, Kohls, Diners Club Premier, PayPal Credit, PenFed Platinum Reward Visa, PenFed PLOC, Chase Ritz Carlton, Citi TY Premier, Amex BCP, Discover Miles, Care Credit, Blue Nile SC, iComfort SC, Cap1 Venture, Chase Hyatt, Lowes, US Bank Cash+, Citi Costco Visa
Message 2 of 11
djenks76
Contributor

Re: Previous creditor in BK 7 - Will they approve me again?

Once your BK is discharged, just keep checking on their prequal site.  Some have been able to get right back in after burning Cap One, others have had to wait, but their prequal site is pretty spot on.  They also offer a credit builder program.


CH 13 filed 5/29/12 - Last payment 11/25/15 - Discharged 1/12/16 Starting EX - 707, TU - 682, EQ - 629, FICO 8 - 604--Current EX - 722, TU - 700, EQ - 713, FICO 8 - 661
Message 3 of 11
Taoron
Frequent Contributor

Re: Previous creditor in BK 7 - Will they approve me again?


@djenks76 wrote:

Once your BK is discharged, just keep checking on their prequal site.  Some have been able to get right back in after burning Cap One, others have had to wait, but their prequal site is pretty spot on.  They also offer a credit builder program.


I think the people who have had to wait had a credit card either closed before bankruptcy by them (as in, many lates and had gone to collections) or had one open and then closed by them with a balance.  

 

I have heard many people talk about the first scenario.  I had 3 cards myself prior to bk, all lower limit cards..  $300 here, $500 there and $700 there.   I fell upon rough times and two of them got closed a year before bk filing.  It had gone to collections and then the 3rd one I was using and paying off and then filed bk and it had a small balance on it.  ($200 or so?)

 

It took 13 months post-filing to be able to open another account with Cap 1 in my situation.



Message 4 of 11
Cruznmore
Established Contributor

Re: Previous creditor in BK 7 - Will they approve me again?

As stated above, it depends on the bank. Cap1 let us back in a few months post discharge. Comenity let my wife have a Victorias Secret card about a year after filing. I don't think I will ever be able to get a Discover or AmEx again (although Discover did approve my wife.) It is all up to the banks and their policies. Good luck!

Ch7 Discharge 3/15: Goal: 700 Current FICO:Equifax: 674(608) Tranunion: 664(585) Experian: 679(590)
Message 5 of 11
jim44
Established Contributor

Re: Previous creditor in BK 7 - Will they approve me again?


@Cruznmore wrote:

As stated above, it depends on the bank. Cap1 let us back in a few months post discharge. Comenity let my wife have a Victorias Secret card about a year after filing. I don't think I will ever be able to get a Discover or AmEx again (although Discover did approve my wife.) It is all up to the banks and their policies. Good luck!


Cruz, you don't think Discover will let you back in?  I've read in these forums where AMEX will probably require you to pay back what you may have owed prior to your C7 or collection, but Discover?  I made the mistake a couple years back and fell for Discover bogus online prequal.  Of course I was denied and did try a recon. I made note that I had never been late on a Discover (or any other card) payment prior to filing.  The Discover CSR told me it was too early after C7 for approval. However YMMV with any bank and of course each CSR may give you a different reason....

Message 6 of 11
Pway
Valued Contributor

Re: Previous creditor in BK 7 - Will they approve me again?

Yes some will let you back in, while some banks have a long memory.  I was able to get back in with Capital One after about 6 months discharged.  However, Synch bank was a different story for me.  It took me a little over a year before I could get back in with them.  However, once I did I was able to obtain all the cards I wanted with them.  

Barclay Reward MC 750|Cabela's 1k|Capital One QS1 3.4k|
|Sony Card 3.5k|
Message 7 of 11
Datx
Valued Contributor

Re: Previous creditor in BK 7 - Will they approve me again?


Taoron wrote:

I think the people who have had to wait had a credit card either closed before bankruptcy by them (as in, many lates and had gone to collections) or had one open and then closed by them with a balance.  

 

I have heard many people talk about the first scenario.  I had 3 cards myself prior to bk, all lower limit cards..  $300 here, $500 there and $700 there.   I fell upon rough times and two of them got closed a year before bk filing.  It had gone to collections and then the 3rd one I was using and paying off and then filed bk and it had a small balance on it.  ($200 or so?)

 

It took 13 months post-filing to be able to open another account with Cap 1 in my situation.


 

I have a feeling you may be right on the first statement. I am burning Cap One for about $1000 or so, and the card was in collections and charged off before I filed for BK. So I think I won't have much luck with them right away. I'll definitely post my results with Cap One when I am discharged in a couple of weeks. 

Message 8 of 11
morongobill
Established Member

Re: Previous creditor in BK 7 - Will they approve me again?

Amex definitely has a long memory. Elephant like.

Message 9 of 11
Sean60099
Frequent Contributor

Re: Previous creditor in BK 7 - Will they approve me again?

I had a BK in 2/2011. I discharged nearly $500k in debt (mixture of business and personal). I unfortunitly burned nearly all of the majors (Chase, Bank of America, Citi, Discover, Wells, Amex, Capital One). The first one to give me another chance was HSBC with the Best Buy Card (now capital one). My second card was a Capital One card which about 9 months after the BK I applied for and was decline due to prior accounts in bankruptcy. About 3-4 weeks later I recieved a Pre-Approval from Capital One in the mail for a Quick Silver One card. I applied and got an on the spot approval for $2000 which was twice my former limit with Capital One. After 3 on time payments they doubled my credit line to $4000. 

Once they increased my credit line the flood gates opened and I started getting pre-approvals again. Many of which were instant declines once I applied but with a simple call to a recon line most decisions were overturned. today 5 years later I have 11 new card (8 majors 3 store). People will ask why I have so many, and the answer is while it is easy to get reapproved for new credit, the terms and conditions are rather terrible so I end up recycling many of the cards and getting better offers from the same creditor. I have quite alot of inquiries on my credit report but my fico is 704 now. 


Current list of cards [Note none of these cards are authorized user card]:

Chase United Club                      $22,000 limit             Note: Upgraded this from United Explorer card
USAA Cash Rewards Amex      $22,000 limit 
Barclay Arrival Mastercard         $15,000 limit
Capital One Quick Silver            $12,000 limit              Note: Upgraded this from Quick Silver one
Bank of America Visa                  $10,000 limit              Note: Upgraded this from secured card
Citi Best Buy Visa                         $10,000 limit
Wells Fargo Rewards Visa         $10,000 limit 
Nordstrom Store Card                  $ 8,000 limit
PenFed Visa Signature                $ 5,000 limit
Consumers CU Visa Sig              $ 5,000 limit
Carecredit                                       $ 3,500 limit

Total Available Credit                $122,500 limit

Recently closed:
Zgallerie (WFFNB)                         $3,500 limit
Macys                                               $   600 limit
Cap One Venture one                   $3,500 limit
Discover It                                       $1,000 limit

Citi TY MC (AU) $30,000 |Hilton Amex (AU) $30,000|USAA CR Amex $28,000 |Chase United $22,000|Nordstrom VS $25,000
PenFed Rwz VS $30,000 |Quick Silver $13,000 |BAC Cash Rwz $25,000|BBY Visa $10,000|PenFed LOC $25,000 | Lowes $30,000 | Care Credit $15,000 Discover It $6,600 |Costco Visa $5,000 |Consumer CCU VS $10,000
NFCU Flagship $19,800 |State Farm Visa $4,000 | Marvel MC $10,000| NFCU LOC $15,000| Wells Fargo 360 Amex $9,500| Citi AA $9,000| Huntington $6,500| BCU loc $25,000| Cap1 savor $10,000| PenFed Amex $7,500

Total Credit line $421,000 | FICO as of 8/3/2019 TU 730 |EQ 699 |EX 697| UTI 2%
Message 10 of 11
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