Question on Credit after completing Chapt.13

[Anonymous]

Hi all,

If you complete Chapt.13 and let's say get a high FICO score of 700+ within 6-12 months after, does this credit score mean the same as if there was no chapt.13 still on the credit record?

I believe it takes 2 more years after ending a chapt.13 (7 in total) for it to disappear from your credit report so I am wondering if you build a high credit score after the chapt.13 ends but before the chapt.13 disappears, does the FICO score make the same impact on future loan decisions if it is high enough regardless of the chapt.13 still being present on the credit report (but completed)?

Thanks

[Grafton88]

Your Chapter 13 is reported on your credit report as a Public Record.  You are correct in that it will last typically 2 years after you pay off your plan if you have a 5 year plan.  It is possible to get an EE(Early Exclusion) from the CRAs.  TU can be a  6 month EE.  EX can be a 3 month EE.  EQ can be a 1 month EE.

I have been denied a CC due to my Public Record even though the FICO score they checked was around 700.

I am currently in the garden waiting for my score to be perfectly clean before I apply for any more credit.

I hope this helps.

[Anonymous]

I tried applying for cards before my Chapter 13 fell off, but was denied except for a secured Capital One card, a Care Credit account and a Apple Rewards card. After the Chapter 13 fell off, I still had some cleaning up to do on my reports such as old accounts reporting negatively when, in fact, they were included in the Chapter 13 and should fall off, too.

It took about six weeks of diligence to clean up my reports, but all were cleared after a while. My scores soared. Once jumped 89 points after the negatives were removed. 

What I learned from this is that while you might get cards with your Chapter 13 showing, you will not get the best credit lines or the best interest rates. 

Good luck to you and I hope this helps.

[kjm79]

There an BK friendly cards and then there are cards that are not so BK friendly. You absolutely can get good limits and decent rates on cards. You just have to know who is BK friendly and who is not so you're not stuck with crappy cards that don't grow. Things are not always score driven. 

Your score will be held down by the BK until it falls off. No getting around that. This is the time you build new positive history. When your BK falls off your scores might even drop or stay pretty stagnant at first becuase of rebucketing. You're in a BK bucket right now. Once it falls off, your reports will be in a new bucket and might take a little hit because someone your age is expected to have so many years of credit history, as an example. You might not have the length of history because you lost accounts throughout your BK. But, the good news is, once the BK falls off your scores will recover quite nicely and fairly quickly. 

If you read the BK forums you see instances of score increases and score decreases following a BK coming off. It's all very dependant on what your reports look like. 

[Anonymous]

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@Grafton88 wrote:

Your Chapter 13 is reported on your credit report as a Public Record.  You are correct in that it will last typically 2 years after you pay off your plan if you have a 5 year plan.  It is possible to get an EE(Early Exclusion) from the CRAs.  TU can be a  6 month EE.  EX can be a 3 month EE.  EQ can be a 1 month EE.

I have been denied a CC due to my Public Record even though the FICO score they checked was around 700.

I am currently in the garden waiting for my score to be perfectly clean before I apply for any more credit.

I hope this helps.

---

Thanks for the reply.

Would I just call the CRA's and ask for an EE?

[Anonymous]

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@Anonymous wrote:

I tried applying for cards before my Chapter 13 fell off, but was denied except for a secured Capital One card, a Care Credit account and a Apple Rewards card. After the Chapter 13 fell off, I still had some cleaning up to do on my reports such as old accounts reporting negatively when, in fact, they were included in the Chapter 13 and should fall off, too.

It took about six weeks of diligence to clean up my reports, but all were cleared after a while. My scores soared. Once jumped 89 points after the negatives were removed. 

What I learned from this is that while you might get cards with your Chapter 13 showing, you will not get the best credit lines or the best interest rates. 

Good luck to you and I hope this helps.

---

Thanks for the reply!

I viewed my credit report and I wanted to ask what should the old various accounts show up as? You mentioned old accounts reporting negative still vs showing they were in the chapt.13? Does that mean those old accounts showed as being late over and over again all the while they were supposed to show as being included in the chapt. 13? If so, how did you have that corrected? Phone call to the credit agency?

[Anonymous]

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@kjm79 wrote:

There an BK friendly cards and then there are cards that are not so BK friendly. You absolutely can get good limits and decent rates on cards. You just have to know who is BK friendly and who is not so you're not stuck with crappy cards that don't grow. Things are not always score driven. 

Your score will be held down by the BK until it falls off. No getting around that. This is the time you build new positive history. When your BK falls off your scores might even drop or stay pretty stagnant at first becuase of rebucketing. You're in a BK bucket right now. Once it falls off, your reports will be in a new bucket and might take a little hit because someone your age is expected to have so many years of credit history, as an example. You might not have the length of history because you lost accounts throughout your BK. But, the good news is, once the BK falls off your scores will recover quite nicely and fairly quickly. 

If you read the BK forums you see instances of score increases and score decreases following a BK coming off. It's all very dependant on what your reports look like. 

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Thanks for the reply!

So, let's say my FICO is 750 6 months after the Chapt.13 5-year plan is completed... I still might face issues simply cause the Chapt. 13 hasn't officially dropped off?

[kjm79]

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@Anonymous wrote:

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@kjm79 wrote:

There an BK friendly cards and then there are cards that are not so BK friendly. You absolutely can get good limits and decent rates on cards. You just have to know who is BK friendly and who is not so you're not stuck with crappy cards that don't grow. Things are not always score driven. 

Your score will be held down by the BK until it falls off. No getting around that. This is the time you build new positive history. When your BK falls off your scores might even drop or stay pretty stagnant at first becuase of rebucketing. You're in a BK bucket right now. Once it falls off, your reports will be in a new bucket and might take a little hit because someone your age is expected to have so many years of credit history, as an example. You might not have the length of history because you lost accounts throughout your BK. But, the good news is, once the BK falls off your scores will recover quite nicely and fairly quickly. 

If you read the BK forums you see instances of score increases and score decreases following a BK coming off. It's all very dependant on what your reports look like. 

---

Thanks for the reply!

So, let's say my FICO is 750 6 months after the Chapt.13 5-year plan is completed... I still might face issues simply cause the Chapt. 13 hasn't officially dropped off?

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Sadly, yes. Some creditors see the BK and just run the other way. Chase, Citi, and BOA for example, whether you included them in you BK or not. There are success stories of people getting in with them but it takes years and the limits tend to be lower. There are just some lenders who are not BK friendly. Your score will ultimately be capped while the BK reports and there's not much you can do about that.  To get an EE you would have to call each CRA. 

[Anonymous]

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@kjm79 wrote:

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@Anonymous wrote:

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@kjm79 wrote:

There an BK friendly cards and then there are cards that are not so BK friendly. You absolutely can get good limits and decent rates on cards. You just have to know who is BK friendly and who is not so you're not stuck with crappy cards that don't grow. Things are not always score driven. 

Your score will be held down by the BK until it falls off. No getting around that. This is the time you build new positive history. When your BK falls off your scores might even drop or stay pretty stagnant at first becuase of rebucketing. You're in a BK bucket right now. Once it falls off, your reports will be in a new bucket and might take a little hit because someone your age is expected to have so many years of credit history, as an example. You might not have the length of history because you lost accounts throughout your BK. But, the good news is, once the BK falls off your scores will recover quite nicely and fairly quickly. 

If you read the BK forums you see instances of score increases and score decreases following a BK coming off. It's all very dependant on what your reports look like. 

---

Thanks for the reply!

So, let's say my FICO is 750 6 months after the Chapt.13 5-year plan is completed... I still might face issues simply cause the Chapt. 13 hasn't officially dropped off?

---

Sadly, yes. Some creditors see the BK and just run the other way. Chase, Citi, and BOA for example, whether you included them in you BK or not. There are success stories of people getting in with them but it takes years and the limits tend to be lower. There are just some lenders who are not BK friendly. Your score will ultimately be capped while the BK reports and there's not much you can do about that.  To get an EE you would have to call each CRA. 

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Thanks very much for the quick reply and for the help!!