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Post BK No Approval

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Member

Post BK No Approval

My Ch. 7 BK was discharged May 2018. It's been a year and my Experian report is 'clean' and I have a score of 620; I have no late payments, credit usage is below 50%, no derogatory remarks (besides the BK which is being disputed and hopefully removed), and I paid off an installment loan of $500 to build credit. I am having a very hard time getting an auto loan. I've tried credit unions, "BK friendly" lenders, even Roadloans refuses to lend to me. What am I missing? Is it because of the BK, the credit usage, or a mix? I feel like majority of people are able to re-establish at least an auto loan at this point. I feel like I'm black-listed everywhere and I can't figure it out. Anybody else have this much trouble post BK?

Message 1 of 11
10 REPLIES 10
Community Leader
Valued Contributor

Re: Post BK No Approval

Do you have any credit cards? You mentioned an installment loan but is there any revolving credit cards reporting?

 

You may wanna try to get a few secured cards to start rebuilding.  Have you tried discovers prequalify?  What creditors did you include in your BK? Cap one is usually very easy to get after a bk, it is usually bucketed of course, but it's a something to build on.

 

You mentioned disputing your BK, I highly doubt that will be removed. Yes BK is hard on yiur reports, but you will recover and rebuild

CU NFCU PENFED ALLIANT BANK USAA BBVA BB&T PPMC IKEA MARVEL DISCOVER STORECARDS LOWES AMAZON MACYS WALMART WAYFAIR CARECREDIT
Message 2 of 11
Established Member

Re: Post BK No Approval

I have a secured card with USAA, and 3 other non-secured cards with ridiculously low limits. I burned Capital One, USAA and Discover. Cap One and Discover refuse to lend to me and I had an agent from Capital One actually tell me to stop applying because my ssn is flagged in their system and they will not reconsider. I find that crazy because what it seems from these forums, Capital One will gladly welcome customers back even after they burn them. I managed to get one approval from DCU for a $3000 personal loan but got roadblocked when I tried to open an account to become a member (Chexsystems is also apparently out to get me). My DTI is under 10% and I bring in over $100k/year. 

Message 3 of 11
Regular Contributor

Re: Post BK No Approval

What are some of the denial reasons you are getting?

 

Also, if the account that is flagged in CHexSystems was apart of your BK, you can send your discharge papers to them to have it removed. 

Starting Scores: Experian: 498 Equifax: 521 Transunion: 514
BK Filed: 06/19/17 - BK Discharged: 09/28/17
Current Score: Experian: 637 Equifax: 626 Transunion: 630
3/29/19

NFCU nRewards = $2,000 (unsecured at month 5); Capital One QuickSilver $2,000; Victoria Secret - $470; New York & Co - $800; Children's Place - $600.
Message 4 of 11
Contributor

Re: Post BK No Approval

Based on what I’ve learned from reading here, I would say your utilization is probably high, so pay that down to zero on all but one, and have the one be below 8.9%. Or try to get credit line increases to lower your utilization. Can you increase your security deposit on your secure card to give yourself more available credit?

If your installment loan was paid and closed, I’d open another. I’d probably do a longer term installment loan, so that you can build more credit history that way. Self Lender or the like.
FICO Scores
5/20/2019: EQ - 568 TU - 591 EX: 589
Message 5 of 11
Highlighted
Established Member

Re: Post BK No Approval

The reasons for denial are insufficient credit history (weird because it's over 7 years old), proportion to loan/balances too high, and inquiries. I am working on paying off more of my credit cards and hopefully I'll see a spike after doing so. Thanks for all the replies, everyone, it seems I'm fighting an uphill battle here. 

Message 6 of 11
Frequent Contributor

Re: Post BK No Approval

What is your income? Road loan will approve anyone as long as you have the income. If your DTI ratio is over 40% most prime banks will not approve you. You have to go subprime

Also how much are you putting down? You are going to have to bring some cash to the deal. Give the bank a reason to approve you.
I just returned from financial hell. Don't go, the brochure is a lie.
Message 7 of 11
Senior Contributor

Re: Post BK No Approval

Whats you util on each card. List credit line with balance. And how many inqs are on each CRA?





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC.
Message 8 of 11
Moderator

Re: Post BK No Approval


@adubz331 wrote:

The reasons for denial are insufficient credit history (weird because it's over 7 years old), proportion to loan/balances too high, and inquiries. I am working on paying off more of my credit cards and hopefully I'll see a spike after doing so. Thanks for all the replies, everyone, it seems I'm fighting an uphill battle here. 


Cap-1 is going to take at least a year if you were not successful. The BK effectively wiped out any credit history you had even good accounts are not going to be considered prior to it, its the elephant in the room.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 9 of 11
Valued Member

Re: Post BK No Approval

One year post bankruptcy I have 4 credit cards. The first card I got as soon as my debt was discharge was a Capital One Secure credit card, and 6 months later my limit went from $300 to $600 and I acquire 3 more cards. Havign said that 6 months ago I was approved for a Capital One Quick Silver Signature Visa card with a limit of $6,000 and  6 months later my limit was raised to $10,000. If you want offers you have to earn yout stripes with the secure credit card and prove your worth and go from there. Pre bankruptcy my credit card score was 531 and now it's 731.

 

 

 

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Message 10 of 11