instant credit and BK

Discussion in 'Credit Talk' started by ShyGuy, Apr 2, 2001.

  1. ShyGuy

    ShyGuy Well-Known Member

    I always assumed that instant credit (where you get a store card in two minutes by filling out a short application and showing your drivers license and a bankcard) had to be a score-driven process. I guessed that if your FICO was x or higher, you got instant approval. If not, it was denied or sent for further review.

    Does anyone know if this is how it works? And if so -- if the FICO score was the only thing looked at -- how would the creditor know if an applicant had a BK?
  2. roni

    roni Well-Known Member

    where you been man?
  3. miles

    miles Well-Known Member

    Instant credit is score driven, but there is also some sort of coding that recognizes BK's, collections, etc.
  4. Shantel

    Shantel Well-Known Member

    BK drives your score down. So if you have a BK, and it's recent, it'll keep your score from qualifiying for the instant credit.

    If you have a BK that's 4 or 5 years old, but years of good credit and you have a higher FICO, you'll be approved for the instant credit. They don't care if you have a BK, they care about that number.
  5. ShyGuy

    ShyGuy Well-Known Member

    Shantel, if it is simply score driven, I know you can bring your score way up in 1-2 years after discharge -- well above most stores' requirements. If you try hard, don't need 4-5 years to get up to the upper 600s. So what causes instant credit to decline BKs?

    Miles, any idea what sort of coding can be sent to stores so quickly that they can reply in a couple of minutes? That's what made me think it was simply score driven.

    Jim's Target approval got me to thinking about all of this. More curiousity than anything else. I know Nordstorm is totally score driven, and it couldn't care if you have a BK. But I'm wondering about other stores.
  6. miles

    miles Well-Known Member

    I'm not sure, but when I applied for instant credit while I had collections and chap 13 on my report, I was declined. I can't remember where I applied, but when I received to letter, it was because of my collection and chap 13.
  7. Jim

    Jim Well-Known Member

    Shyguy - Nordstrom is score driven BUT they told me when i applied that I had to be 2 years past the BK with no credit problems since the BK of any kind. Also, that I had to have re established credit with a new credit card at least 2 years old. Then they would consider me for a card with no guarantees.

    As you know, I met the criteria and got the card. they also asked about income, length of time at residence etc.
  8. ShyGuy

    ShyGuy Well-Known Member

    That's not what they told me. Maybe it's because I used to have a store card and Nordstrom Visa. The rep said to apply in another six months, which wouldn't be 2 years yet. But I'll double check before I apply.
  9. Jim

    Jim Well-Known Member

    I remember that they told you similar (but not the same) info. No problem. Do apply in 6 months. Different reps will always say things a little differently.
  10. ShyGuy

    ShyGuy Well-Known Member

    Heck, when I was tried to get a secured card, it was so difficult to find reps who would agree on whether their company would issue a card to someone with a BK on his record.

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