My friend isn;t computer savy so posting this for him. Anyway here is the deal. He did Ch 7 5 years ago (exactly). He now has 17000 in credit cards spread across 6 cards (Sunoco ,MBNA, Cap One, Miles One Orchard, Direct Merchants). None have annual fee. Oldest card is 4 1/2 yrs, newest card 1 year) Equifax gave him fico of 675, experian gave fako of 631. Some of the balances of his ch7 debt is showing so he disputed since they should be 0. Has checking, savings, stock market, good annual salary.. 1. What can he do to increase the scores other than time which he has waited for 5 years other than slow improvement. Can he add a message saying he was young when he did chap 7 or is that a no no 2. American Express will not approve him whatsoever. Is there any hope for him getting approved? He did have a ch 7 debt with them but that was 5 years ago. Will he have to wait 10 years to even get considered? 3. For mortgage purposes is he in the clear after 7 years or is basically the 10th year when he'll be good
If your friend filed BK on American Express he will never get another American Express card ever! This happened to a friend of mine. He filed BK 7 on American Express and some 12 years later applied for another American Express card and they told him if he paid off his BK account they would consider him for another.
if he paid it off would they give him another or just 'consider' Also more info. He has 17k max credit, owes nothing, but has 30k student loans, deferred, never late/missed payment
I never did anything to AMEX (IIB,CO, etc) but I got approved for AMEX GOLD with a 8 year old CH7. So there is hope. You will need to pay them back any past-due amount you owe and then wait for 1 year.
Re: Re: Bankruptcy after 5 years Mortgages are different as there are lenders to fit any type of mortgage. Getting one should be easier than a prime cc but it's based on and not limited to down payment, job security, loan amount and value of the home. I got a prime mortgage in my 5th year of a bk-13 and really did well after my bk-13 fell off. Just beware that your friend may have to pay above what a prime customer pays in interest but one can use that as a spring board for a refinance in the future. As for prime cc most will not approve with a bk on file. Amex will not approve based on a bk especially if you bk on them. Your friend can pay if off but like George sez no 'gurantee'. Best regards, Mirage
Re: Re: Bankruptcy after 5 years I got a mortgage 18 months out of a BK7 with no new credit on file. As I understand it, the prime cards will not consider anyone with a BK on record. That would be 10 years post BK7 or 7 years post BK13. I have 11 months to go before mine falls off. I am soooo hoping to be prime then!
Re: Re: Bankruptcy after 5 years Not true. I have a BK7 on file but have gotten BofA MBNA Citi AMEX (and now costco) Are these not prime?
Re: Re: Re: Bankruptcy after 5 years He can get conventional rates using FHA. Do a search here on FHA and you'll find scores of threads from people with awful scores and bk's getting these mortgages.
Re: Re: Re: Bankruptcy after 5 years I filed for Chapter 7 protection in April of 1995 and had everything discharged in August of 1995 (almost 9 years ago). I now have a Citi card with a $6,500 limit and a Capital One card with an $8,000 limit, so I'm not sure why they're not giving you any prime cards. I started out with a secured card from Capital One a year after filing which they converted to a regular card after I used it for a year. The Citi card is only two years old (they sent me a pre-approval offer). It had a $5,000 initial credit limit and they raised it to $6,500 after a year. I've also financed one new car at 0% (Ford) and a second new car at 2.9% (Honda). But if I could give you some advice, it would be to stay away from credit cards altogether unless you can pay the balance off each month completely. They are nothing but a trap if you ask me. For instance, even though I did a Ch. 7 nine years ago, I've still managed to run my cards up and carry a balance on more than one occasion. I'm actually planning to lower my limits on each card to about $2,000 once they are both paid in full next year. To be honest, I just don't trust myself with $14,500 of available credit. In a worst case scenario, I'd rather be maxed out at $4,000 rather than $14,500. This might not work for everyone, but for me I think it's the best solution. Credit cards are kinda like alcohol or gambling. If you can't control your drinking, then you shouldn't have any booze in the house. If you can't control your gambling, then forget about playing cards or board games. If you're gonna run up your credit cards and take 8 or 9 years to pay them off, then don't have a card in the first place...or at least not one with a huge credit limit. Maybe that's old-fashioned, but maybe that's what some people need to hear these days. I'm not saying you're not a responsible person, though, so don't take that the wrong way.
Re: Re: Re: Bankruptcy after 5 years My BK was discharged Mar '95. I use credit for everything these days and use 4 out of 5 cards very frequently, haven't used cash for awhile. It is not irresponsible to carry a balance that you can pay off. Sometimes I revolve a small amount when I make large purchases or alot of purchases, but most of the time I don't. Just a personal preference.
Re: Re: Re: Re: Bankruptcy after 5 years I PAY ON-LINE... I CAN PAY IN FULL EVERY-OTHER-DAY IF I WANT... I WOULD NOT REDUCE THE CREDIT LIMIT ON ANY ACCOUNT I HAVE...EVER...EVEN IF THEY GAVE ME 0.00% BT AND PURCHASES FOR 3 YEARS!!!! BUT THAT IS ME.
Re: Re: Re: Re: Re: Bankruptcy after 5 years Hey George...thanks for your feedback. I only say this because I honestly do not trust myself with credit cards anymore. The main reason I had to file in 1995 was due to the balances I had. And, like I said in my original post, even though I had everything discharged I still managed to run my cards up again and carry balances for many months. I've just finally reached the conclusion in my life that if I can't use them responsibly (pay them off in full each month) I don't want to take any chances. I've already been through one BK...I don't need another! Anyway, I have to give you credit if you're able to control the urges not to run up your balances. I definitely cannot!
Re: Re: Re: Re: Bankruptcy after 5 years I think the rule of thumb I'm seeing these days is to not carry a balance for more than 90 days. It used to be pay in full every month, but some financial planners are saying if you have to buy a big ticket item it's okay to carry a balance as long as it's no more than 3 months. I guess that's just the cost of using credit. The point I'm trying to make is that it's insane to charge $5,000 and then pay $125/month. At that rate, it will take something like 14 years to pay everything off! I lived that way for several years before I finally filed for chapter 7 protection. And, just for the record, the majority of my credit card purchases were for every day living expenses (dental bills, medical bills, car repairs, food). When I filed, I had nothing to show for all of my debt (no fancy car, no home entertainment system, no fur coats, jewelry, furniture...nothing). I was completely broke.
