Bank of America denied credit due to "historical use of your account"

[Anonymous]

I had a ch7 bankruptcy in 2009 and lost 3 investment properties and had alot of credit card debt from a job loss and the housing crisis.  BofA was the owner of a couple of the loans.  Now, in 2017 & 18, I've been trying to get an alaska airlines (BofA) awards credit card (for several years).  They keep denying me the awards credit card (free companion fare).  Their reasoning is  "historical use of your account".   When I applied for a HELOC recently, from Wells Fargo, they denied me too for the same reason.   I finallly got someone to tell me what that means.  He said that becasue the Ch7 wrote off so much debt, that the banks are punishing me and not allowing me to have credit with them.  I have great credit with US Bank, American Express and Citi (no problem with those banks).  The last denial letter shows that I have a FICO score of 743 and I have low debt to inome ratio.  Can they really deny me a $5k credit card becasue of the bankruptcy from 9 years ago?  Will they still be able to deny me after the bankruptcy is off my credit report?  Anyone else experience this behavior?

[JVille]

Any bank that took a previous loss due to BK or Foreclosure CAN and likely WILL refuse to extend further credit to you. If your BK is still on your CR in the eyes of the bank (WF) sees this as a legitimate reason to deny you.

[Anonymous]

Credit is a privilege, not a right or entitlement. I know it can be frustrating, but that's the way it is. Hang in there, I've seen people discuss blacklists due to bankruptcy, and eventually, most seem to give another chance. Some just wait 10+ years to do so. 

[Anonymous]

Not trying to sound harsh, but would you lend money to someone who ripped you off? I know I wouldn't, and banks feel no different. Sure its only 5k, but how do they know it won't be 20k the next time.
Definitely they let you back in sometimes. Just keep showing good payment history with your current lenders.

[Anonymous]

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wrote:

I had a ch7 bankruptcy in 2009 and lost 3 investment properties and had alot of credit card debt from a job loss and the housing crisis.  BofA was the owner of a couple of the loans.  Now, in 2017 & 18, I've been trying to get an alaska airlines (BofA) awards credit card (for several years).  They keep denying me the awards credit card (free companion fare).  Their reasoning is  "historical use of your account".   When I applied for a HELOC recently, from Wells Fargo, they denied me too for the same reason.   I finallly got someone to tell me what that means.  He said that becasue the Ch7 wrote off so much debt, that the banks are punishing me and not allowing me to have credit with them.  I have great credit with US Bank, American Express and Citi (no problem with those banks).  The last denial letter shows that I have a FICO score of 743 and I have low debt to inome ratio.  Can they really deny me a $5k credit card becasue of the bankruptcy from 9 years ago?  Will they still be able to deny me after the bankruptcy is off my credit report?  Anyone else experience this behavior?

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Yes to every question. When they see enough good behavior over the long term you will slowly be let in. And those that you burned may last a very long time. But eventually all wounds heal. Some take longer than others. Credit is a privilege, not an Entitlement. I Know I sound harsh but too many people think just because they deserve everything now. Keep your head up and continue paying all bills and slowly good things will happen.