Do creditors take a look at credit prior to bankruptcy or are they the more concerned with the credit built after bankruptcy? Prior to bankruptcy I had perfect credit with a long credit history and only included a car loan and three credit cards. I have since gotten a new car loan through Ford (2.9% for 60 months) and a Target Visa ($4000/15.9%). Since I'm planning to buy a condo in 3-4 years, I don't know if it would be better to try to get more cards (which I really don't want/need/desire) or just use a combination of my past credit history plus with my new credit history.
The short answer is you should have, at a minimum, three open paid as agreed credit lines. So you should get a credit card. You may have to get a secured credit card. If you are a member of a credit union you can get a good deal on secured credit card there. If not try, http://www.cardweb.com/cardtrak/surveys/secured.html OR http://www.cardoffers.com/reviews/c...9&apr2=9999&intro=9999&Submit.x=34&Submit.y=9 As far as your credit history before BK, in the way you are asking the question, I think the answer is a little. Not having late pays on your credit files is a small plus. The main thing now is how old is your credit file. Credit file age shows up on your TransUnion credit report right under your birth date. Actually they list it as "You have been in our files since". You have to do the math yourself. 5 years is considered very short. 15 is good. 30 is optimal. The other number the FICO score looks at is the average age of all accounts on your files. This is all accounts open, closed, negative, or positive. As you add credit keep an eye on this number and keep it above 5 years. Remember if you dispute old negative accounts and the accounts drop off, this statistic can drop and impact your score somewhat. Good luck.
topazmoon, you asked several questions i am very interested in understanding, so i look forward to others' responses to this topic. can i ask you this about what you stated: when you say you 'only included' x number of creditors in your BK, i am wondering if that means that you had zero balances on the others or how come only some had to be included. i am in a situation where it seems like BK may be immanent, and i thought that i would have to list all my creditors, even if the accounts are minimal. is that correct? my credit history is not so good right now, but it will be a lot worse if i wait too much longer to file, so i am interested in what comes of your post. good luck with everything. thanks, soren
This may not be the answer you want to hear, but since I was in a very similar situation, I can shed some light on your question. After filing, I had a few positive accounts that were not included in the CH13. However, almost every creditor disregards anything prior to CH13, and the BK will be your biggest obstacle in the first few years. It will always be in the way of obtaining any serious credit with good terms. As more time passes (4-5 years in my case) creditors begin to focus a lot more on post-bk credit history, but of course no prime lender will look your way until the bk falls off. Hope this helps!
Topazmoon I think you will definatly be able to get the loan. The question will be the intrest rate. Whan did you file the BK and was it chapter 7 or chapter 13? If you are doing well enough to get a Target Visa with a $4000 line you should apply for regular cards. I would go for a gas card now and apply for a Visa 6 months after the gas card. http://www.cardoffers.com/reviews/c...&apr2=9999&intro=9999&Submit.x=35&Submit.y=12 AND http://www.anbcards.com AND https://credapps.theassociates.com/bankcards/phillips/bankapp.asp?sc=10593&pc=0002701005 http://www.theassociates.com/pf/credit/portal/shell/shl_ahm.htm?assoc
True Soren, You must list all accounts that YOU OWE AT THE TIME YOU FILE in your bankruptcy petition. If you have credit accounts that have a zero balance then they don't have to be included. If not included, it's up to the creditor whether the account will stay open or not once they know of your bk. I had three creditors who I didn't owe at the time I filed and two of the three let me keep the accounts open after my bk. I know it's not easy having gone through it myself. But get a lawyer you're comfortable with and read up on the process and it won't be so bad. Good luck!
