@jeffery581 wrote:ill never understand why some with prev bankruptcy get better deals than someone with no history. One has a proven failure.
.... together with a lot of success. Bankruptcy is not something that tends to recur in one's lifetime.
Without any history, there is too much uncertainty. From a risk management perspective, huge fluctuation is a big no-no. For someone that has a track record, you can predict his probability of default based on his past credit behavior. For a clean slate, there is no way to tell.
@Open123 wrote:
@jeffery581 wrote:ill never understand why some with prev bankruptcy get better deals than someone with no history. One has a proven failure.
When it comes to financial models, a known quantity is always preferrable to an unknown one.
In the case of proven failure, at least it's a known quantity where opt to price it accordingly with a higher interest or bet on it to fail. While for the unknown, when it comes to financial forecasts, the only prudent course is avoidance.
Jeffery, that sounds a bit judgemental IMO and totally off topic to what my post was about. Perhaps you didn't mean it that way but that's the way I'm reading it. Anyway I'll give you a little history. His credit history was stellar before the crisis hit. He's 55 years old, divorced from a wife who raked up a pile of debt in the year before he filed, teenage son was in a horrific car accident that raked up even more debt in medical bills, and working for a company for 24 years that downsized and reduced his salary. So his excellent credit history went back some 30 plus years and wasn't erased because he filed bankruptcy.
Perhaps creditors look at a chp 13 filer different than a chp 7 because they do pay back their debt and therefore extend credit again. However, looking at it from a creditors postion, if I had to offer someone credit I would rather give it the 13 filer than the 7 (and this is not a knock against 7 filers just a statement applying to this scenario), because they DID pay back their debt. I have no facts to back that up but just a theory...LOL!!
Bad things happen to good people sometimes but life just isn't fair so you have to take your bumps. So in regards to your question as to why people with a bk get a better deal than those with no history, maybe the above will answer your question. The "proven failure", as you stated, is a situation that occured once in his lifetime of which I should add, he paid back 100% of that debt in a 5 year chapter 13 plan. I don't see that as a proven failure but more so someone who wanted and did pay thier debt. On the other hand someone with no history leaves little to base any decision on.
So, how's everybody doing? 
And back on topic...Rhaeny, if your friend mstakenly apped for excellent credit then that might be the reason for decline. He has already taken 3 HPs so it never hurts to at least try. Others may say, he apped for the wrong card and therefore there is nothing to recon.
If he apped for average credit then it seems like Cap 1 is not the card for him until it drops off his CR's.
And back on topic...Rhaeny, if your friend mstakenly apped for excellent credit then that might be the reason for decline. He has already taken 3 HPs so it never hurts to at least try. Others may say, he apped for the wrong card and therefore there is nothing to recon.
If he apped for average credit then it seems like Cap 1 is not the card for him until it drops off his CR's.
