Just discharged for Ch.7 & applied for a Capital One card; Denial reason BK not discharged?

[captainhook]

Hey guys,

I am new hear and trying to start over after a long road of credit issues and just recently went through Chapter 7 and got my formal discharge around a week ago.  Credit Karma seems to reflect the update to my file and shows the discharge date, and it looks like at first glance all my old accounts are accurately showing zeroed out and discharged in Chapter 7 in the associated notes.  Credit Karma showed a recommended unsecured Capital One card so I decided to go ahead and apply, and it did a hard pull, and denied me.  When I got the electronic denial or adverse action letter, the only reason listed is "Based on your credit report from one or more of the agencies on the back of this letter, the presence of a non-discharged bankruptcy".

Then there is the following disclaimer:

"If you feel we missed something or misread your information, then please write to us at P.O. Box 31290 Salt Lake City, UT 84130-0290 and include your Application ID number referenced above. (Please note: we recommend you contact the credit agencies first to ensure they have accurately reported your information to us. Contact information is provided on the back of this letter.)"

I guess my first question is, do I need to manually reach out to each credit reporting agency and make sure they have updated my credit file appropriately to reflect I am now fully discharged?  If so, what is the easiest, most efficient way to do so?  Second, is it worth trying to reach out directly to Capital One via regular mail, as detailed above, with a copy of my discharge letter attached?  Will they potentially reconsider my application and possibly approve me upon receipt of the aforementioned documentation?

The only open/active accounts with any sort of balances on me credit report now are student loans, which are on deferment.  However, I just noticed there is one that has a balance of around $740 that is actually showing extremely past due and I guess it may be one of the "cash" loans (my student loans are all like 8+ years old) and apparently I missed it and haven't paid anything on it.  I know this is unrelated to my original post/question, but any advice on trying to get it cleaned up on my credit report as far as the long-term past due status, assuming I call and try and start a small payment plan or something?  Or is there really not much that can be done as far as improving reporting and the possibility of helping my score in some way?

I digress.  If anyone has any other suggestions on best secured cards to start out with to get back on the credit building train based upon offers out there currently, please feel free to chime in.  I was also looking into some of these new-ish (to me) credit building loans/apps that you put small money towards each pay period and they then report to credit.  Any of those provide more score-improving benefits than another?

Thanks so much everyone!  I will be researching further on here and trying to read as many threads as I can for further up-to-date advice too, as I just found this forum tonight.

[Lou-natic]

Right now annualcreditreport.com is giving updated credit reports weekly so take advantage of those. They show everything, even all the soft pulls different banks and other institutions like insurance companies perform on your credit.

Check all of your reports there and make sure everything...checks out. Credit karma is ok but is mostly used to harvest marketing dollars from credit card companies so take that in mind when they tell you anything. They can be useful for special SUB bonuses and whatnot on a card you are already planning to get but don't take any recommendation from them seriously.

-edit-

Just so you know it's not just me making things up about CK either.

https://ficoforums.myfico.com/t5/Credit-in-the-News/FTC-Takes-Action-to-Stop-CK-From-Tricking-Consum...

[SUPERSQUID]

I have read posts where cap one is using info a few months past. 1 week is a very short time, give it 2 months or so for all the cra's to catch up.

If you included cap 1 in your bk7 it may take a year or more to get back in. ymmv

Those ck recommendations are just marketing.

[FireMedic1]

Welcome to the forums @captainhook 

Always wait until at least 30 days after DC for all accounts to reflect IIB. Check your ACR then. The score will rebound in your favor. Your legally out of debt. Theres no rush. Let it play out. Contact Cap1 as they said. You waited this long. Whats another month? Credit isnt going anywhere. Plus it will take a few yrs to rebuild again. Slowly. Good Luck!

[NoMoreE46]

Welcome to myFICO @captainhook.

Understandably, you are very anxious to get going but while a week may seem like a great amount of time to you (post BK)  you probably need to contain your excitement (any apps) for a few more weeks like @SUPERSQUID and @FireMedic1  have stated.

I think you made a solid choice trying CapOne (though a bit early) as it tends to be BK Friendly even IIB. 

[StephenH]

Hi @captainhook!

Congrats on your discharge. You're starting with a clean slate, get excited about the rebuild ahead, but keep in mind it's a marathon (something I still forget). 

I would read through these: https://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td...

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Sec...

I personally didn't follow this but I believe this is a solid plan of attack. My journey so far is listed in my signature. It's not much different except I decided not to get any secured cards or credit one cards and I don't have a SSL.

I know capital one may not be the best lender out there, but has been an integral part of my rebuild and many others. Always use the pre-qualification tool prior to applications where available and give your profile time to age and recover.

Unfortunately, there is no capital one recon to try and explain your position so I would suggest, like many have before me, to just to wait it out and prep to apply with some clear framework.

As for the installment loan, if you don't have any installment loans reporting, I would get set up with penfed, they have a SSL program.

Good luck and ask questions before your apps!

[captainhook]

Thanks so much for the advice here, as I did not realize the amount of pure marketing that CK is involved with.  What other credit monitoring apps are considered worthy by these forums, and are there any free ones that remain legit and up-to-date? I will continue reading through some of the other suggested threads below as well and continue my search. 

[captainhook]

Thank you!  I guess I may have jumped the gun a bit then!  That said, would it do anything in my favor to actually reach out to the CRAs directly to notify them, and include the formal discharge documentation?  Or do I just have to let things roll and they will do it according to their own timelines, regardless if I send notificaton or not?

[SUPERSQUID]

---

@captainhook wrote:

Thank you!  I guess I may have jumped the gun a bit then!  That said, would it do anything in my favor to actually reach out to the CRAs directly to notify them, and include the formal discharge documentation?  Or do I just have to let things roll and they will do it according to their own timelines, regardless if I send notificaton or not?

---

I went thru the bk7 thing in 2019. You just have to be patient and wait for the court and creditors to report. Rebuilding your credit will be a slow grind anyway so a short wait is not going to hurt.

I am not an expert on the subject but i think the cra's need the bk info directly from the creditors/court. I believe you can object to what they report but it has to be reported by them first. Besides by the time you get any sort of reply from the cra's the info might already report.

[StephenH]

Credit Karma is reliable enough for updates, except EQ report usually doesn't show the BK and don't take the credit card suggestions seriously. They are promotional offers. Also, the scores aren't really helpful either. I use it to keep up with accounts and how/when they are reported.

I would suggest checking with your bank or credit union, they usually have provide free fico score/report, but again make sure it's fico 8, most tend to be vantage score.

Read through the threads; consider getting in with Penfed. I see members 6 months to 1 yr post BK get approved for their credit products with decent limits and they grow plus they offer SSL if you don't have an installment loan reporting.

I don't think it's necessary to reach out to the CRAs, give it time and try the pre-qualification in about 30 days.