Was talking to my next door neighbor yesterday and learned he was about to declare bankruptcy. He's disabled after a bad car accident (driver was a drunk 17 year old with no license or insurance) and stuck with over $100,000 in medical bills. Up until the accident, he had excellent credit and was thinking of purchasing a house next year. Obviously that's been put on hold until further notice. He knows he's going to lose all his credit cards in the BK, but he does have two Citibank AA cards that do not have any balances. He used them primarily for business travel, but hasn't used them since the accident (four months ago). Since he knows that I have declared bk, he wondered if he could keep the two Citi cards. His BK lawyer says he doesn't have to list the cards, but doesn't know what Citibank will do in the future. I told my neighbor I would check this board and post a question. I told him I thought I remembered a post where a woman managed to keep her Citi card after Bk, but her credit limit was lowered afterwards (And of course I can't find the post now...grrrr). Anyway... Do any of you know how Citibank treats people who have declared bk, but didn't include Citibank in the bankruptcy? Thanks in advance!
Keeping Citi after a BK is NOT recommended like other companies are. Every few months like clock work, they will do an inquiry on the credit report and if they see anything negative (newer) they will close the acct on their own, or mark up the apr to somewhere around 24% even if there is no balance owed. They then consider you a "risk" and they are very strict with that. Even if you are late one time with an introductory rate, you lose it. They are very strict thats why I would not want a credit card with them. I wouldnt want to take chance on that happening. My best friend had a credit card with them, filed BK, no bal on that card, tried to keep it, and they permanently closed it on her a month later due to "info on credit report" Now she has a negative mark AFTER her BK. J
Most card companies will do this - it is in your cardholder agreement. If you default on another debt, they consider you in default even if you don't owe them anything. If there are some that have different practices, it would be interesting to know.
If my neighbor does get a black mark on his CR from Citibank closing his, can he dispute it to get removed? I'm just curious...would it be possible for him to be an AU on a citibank account. His fiancee has two Citibank cards. Could she add him to her account so he can have a card or do they do credit checks on AU's? Cynthia
