When does a ch7 start losing impact on score/applications?

[Anonymous]

I am well aware that it stays on for 10 years, but I've read many places that say it "has less impact over time." What I'm wondering is exactly when it starts having a lesser impact because I can't find that information anywhere. I'm specifically looking to apply for apple/amazon ccs and get approved, but I've always been declined despite having a 640 credit score now and low utilization (burned amazon for about $500/never burned apple). Anyone with experience have a timeline? I am thinking of applying again after my 3-year discharge anniversary.

Also, will I be able to buy a house in 5 or so years with a ch7 on record? I plan on buying a home but paying for most of it in cash (maybe 40k loan max) if not the whole thing.

[Horseshoez]

As you noted, the impact of a Chapter 7 loses impact over time, but how fast is one of those, "It depends" kind of answers.  For someone making a high income and being able to pop for some high limit secured cards and a secured loan, the bankruptcy won't be too much of a drag after two to three years.

Regarding your desire to get an Amazon Visa, I'm thinking if you burned Amazon before, it may be a good long time before you can get that back, especially if you burned the Visa/Chase version.

[kittycreditmeow]

I applied for the Apple Card not too long ago as well and was declined not only because of the bankruptcy derog but because of my way too many inquires. I think it really does just depend on the individual. My sister and her husband got a fha loan at a credit union like literally right after they filed chapter 7. They got two auto loans through the credit union and also got a discover card a year after filing which I still haven't been able to prequalify for. I know people with worse scores then me that have been approved for stuff that I can't get. It just varies, no rhyme or reason. I'm about 16 months post BK7 so I can't really answer when it will start losing its affect but just keep plugging away and I bet you'll get the Apple Card soon enough. 

[DebtStinks]

Yes, as others have stated, you start seeing the impact reduce quite a bit at the 2+ year mark. It will negatively (roughly 70+ points) impact your score the entire time it's reporting.

Regarding a home loan, you can get a NonQM day 1 after discharge, but not at ideal terms. FHA/VA can be obtained 2 years after discharge...I did this. FHA can be done with gift funds/down payment assistance, etc at a minimum of 3.5% of purchase price. VA can be done with $0 down.

Any card issued directly by Chase (not co-branded like Amazon store card) will VERY likely be denied as long as the BK is reporting. Some will deny this, but it's been pretty much the gospel as far as I've known and the reason why (even though I never defaualted on any Chase card) I've chosen to not even attempt an app with Chase.

I hope this has helped.

Best of luck!

[Anonymous]

@Horseshoeznope. It was the store builder card and when I apply now I just want the in-store one (unless I really think I can get the visa, but I think it's wiser to just go for the store one haha). If I could go back I probably would have just paid off amazon instead of let it get burned but it's in the past now. *shrug* 

Thanks for the input!

[Anonymous]

@kittycreditmeowthanks! Best of luck to you as well in recovering and getting the card!

[Anonymous]

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So as long as I didn't burn chase I should be fine especially if I apply for the store builder amazon card after say 3 years? I'll keep my fingers crossed then...my scores are around 630-650 now but I'll get a bit higher before I do anything else. Thanks! @DebtStinks 

[etex]

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@DebtStinks wrote:

Yes, as others have stated, you start seeing the impact reduce quite a bit at the 2+ year mark. It will negatively (roughly 70+ points) impact your score the entire time it's reporting.

Regarding a home loan, you can get a NonQM day 1 after discharge, but not at ideal terms. FHA/VA can be obtained 2 years after discharge...I did this. FHA can be done with gift funds/down payment assistance, etc at a minimum of 3.5% of purchase price. VA can be done with $0 down.

Any card issued directly by Chase (not co-branded like Amazon store card) will VERY likely be denied as long as the BK is reporting. Some will deny this, but it's been pretty much the gospel as far as I've known and the reason why (even though I never defaualted on any Chase card) I've chosen to not even attempt an app with Chase.

I hope this has helped.

Best of luck!

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@DebtStinks  I have read other postings here on Chase before mentioning the same fact.  

Here's a link to my thread, which you may or may not find interesting.  In my case, BK's will drop before I decide if I apply for a CSP or CSR along with another card.  

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Breached-800/td-p/6279120

Good luck OP on your rebuild journey !