NFCU wait is 6+ yrs for BK13s??

[Yeliaba1]

While this is partially to vent, I hope others might shed another perspective.  Also a DP for others completing CH13.  I opened a secured card with Navy during my CH13 in Oct 2017 and it graduated in 5 mos. to $2K.  I max it out with a balance transfer a year from graduation and they upped it $1K.  Another year passed and after my recent discharge (7/15) they upped it another $1K to $4K.  I've had no issues with the card PIF or carried balances.  TU9 scores consistent about 725.  No problems with other accounts, UTIL usually below 10%, and low DTI.   I  applied for the More Rewards card yesterday and was immediately denied.  I sent a message to reconsider and they stood by their decision.  Stating that I need one year post discharge.  They won't tell you this upfront and voice that you are welcome to apply (GRRR!!)  No fault to those with BK7s but I can't see how this is a fair policy.  I filed in March of 2014 and won't be eligible for an unsecured product until July 2020.  Someone can file a BK7 5 years after I did, pay nothing back, and be eligible for an unsecured NFCU cc before me.  Again, this is nothing against those that filed BK7s, but I fail to see how this is fair.  Moderator:  Not sure if this is the correct location.

[coreyb80]

Do you have any other cards outside of this?  I ask because I'm wondering if they want to see more history outside of them for a year.  

[Yeliaba1]

Yes!!  Five others with the youngest (BOA)1yr 5mos.  I have a car loan and several paid SSL loans.

[coreyb80]

Super weird that they want a year when you already have the history.  I still 2 years left on my 13 so I guess that means, outside of my secured card with them, I have 3 years for I can get a NFCU credit card then.

[Shooting-For-800]

Pretty simple... you are not released from your obligations until discharge.

On the plus side, your aging since BK will be much older since it is based on file date.

Your 5 year Ch13 will fall off your credit report 2 years after discharge while Ch7s have to wait over 9 years.

Some would say that is not fair.

[Yeliaba1]

@ 800 I appreciate your perspective.  To clarify, I was more frustrated that Navy's policy seems more favorable to those that filed Ch7.  If I had filed Ch7, I would have been eligible for an unsecured product a little more than 2 years from the file date.  Those that file CH13 have to wait 6+ years from the file date.

I wasn't disputing the overall BK policy, but I would imagine that the length of time a BK remains on the reports is likely due to those who filed CH13 had to pay back part of their debts to creditors.  During a CH13 you live with tight restrictions on your finances for up to 5 years and can easily pay back $50K or more.  I see some fairness that they should have that blemish removed from their credit reports earlier, in lieu of their repayments.

[Shooting-For-800]

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@Yeliaba1 wrote:

@ 800 I appreciate your perspective.  To clarify, I was more frustrated that Navy's policy seems more favorable to those that filed Ch7.  If I had filed Ch7, I would have been eligible for an unsecured product a little more than 2 years from the file date.  Those that file CH13 have to wait 6+ years from the file date.

I wasn't disputing the overall BK policy, but I would imagine that the length of time a BK remains on the reports is likely due to those who filed CH13 had to pay back part of their debts to creditors.  During a CH13 you live with tight restrictions on your finances for up to 5 years and can easily pay back $50K or more.  I see some fairness that they should have that blemish removed from their credit reports earlier, in lieu of their repayments.

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Of course, but every case is different.

Technically, you can be in a 13 and never pay a dime of unsecured debt depending on income and back payments for home and car.

In addition, Ch13 allows one to keep items of worth that a Ch7 would not.

There are advantages and disadvantages to both.

I certainly understand the frustration, but that frustration will turn to joy as soon as that BK falls off.

[Yeliaba1]

Agreed!!