Credit Card Application Bankruptcy
Is My Credit Score Ruined Forever After Filing Bankruptcy?
Author: Steve Sanchez
The major disadvantage of filing for bankruptcy is that your credit score will be quite low for a while. The importance of a good or decent credit score will determine if you can ever apply for a loan on a car, house or even a credit card. Since just about any transaction in this economy is based on the credit score, take every effort to increase your credit score, even if you have filed bankruptcy.
Reparing your credit score post bankruptcy can be accomplished rather easily and is unquestionably attainable. Just 1 month after receiving my bankruptcy discharged, I received a preapproved credit card application from Capital One Bank. Capital One knew about my bankruptcy as stated in the preapproved letter and did not care that I have a little mar on my credit history. I received my first credit card post bankruptcy and has been working towards increasing my credit score. It is possible to restore your credit score because I am the prime example of it. After filing for bankruptcy, I did not even bother to check my credit score, because I know it will be extremely low. After 15 months of credit repair, I managed to get my credit score to 750.
Why wait to fix your credit when you know your credit score will be damaged once you have filed for bankruptcy?
Credit Card Application Bankruptcy
- Rebuild your credit history by acquiring a secured credit card
Secured credit card is relatively easy to obtain because it has to be paid in advanced, and you can only spend what your account balance holds. Secured credit card will not allow you to spend more than you have balance for in the card. Use your secured credit card on expenses such as your monthly bus ticket when you commute to work. If the monthly bill that you are paying using the secured credit card is , remember to reload the secured credit card or more per month. You want to use this method to fix your credit score over a period of 12-15 months in order to establish your credit worthiness. If you can prove to the lenders that you are responsible for the debts you have incurred, you will see your credit score increase over time. Do not worry if you cannot get a secured credit card. A lot of secured credit cards are aimed towards people with bad credit history so you will more than likely get one.
Try to apply for an unsecured credit card some time after using your secured credit card
Unsecured credit card is issued by the lenders based on your income and your credit history, therefore it is more hard to get if you have just gone through the bankruptcy process. The reason why you should apply for an unsecured credit card is because you have already established a good credit history months leading up to the application.
Credit Card Application Bankruptcy
Take precaution not to "max out" your secured or unsecured credit card when you want to repair your credit score. Lenders want to see that you are using your credit line frugally and that you can pay it off on time. When they are convinced you have the ability to pay off what you are spending, your credit score is bound to rise over time.
Can you apply bankruptcy while the credit card company is suing you?
How much normally a bankruptcy application in Canada will cost?
all we have is:
- rusty 13 years old car
- 2 laptops
- couch worth $2,500
- bed with broken legs
- kitchen utensils
- wii but the sensor bar is not working
- old 27″ tv, never been used for couple of years now
I don’t know much about Canadian law. In the US, you would be able to file, and the lawsuit by the credit card companies would be put on hold pending the bankruptcy. It don’t see anything on your list I think they could take, with the possible exception of one of the laptops and the couch. You forgot to mention cloths, but a reasonable amount of those would be protected in bankruptcy.
A question about credit card applications (see details below)?
Some credit card applications ask if you’ve ever had a bankruptcy in your past credit history. If you did previously file for bankruptcy and it has since been discharged from your credit record, would it be okay to just say you have never filed for bankruptcy when you fill out the application?
They wouldn’t be able to find it anyway if it is supposed to be removed from your credit record right? Also, would it be considered unethical to lie on the credit application and could this end up hurting your credit history if you did this and were caught doing it?
application, that qualifies as fraud through misrepresentation for financial gain, and you can be prosecuted or not be able to lose the debt through bankruptcy. But, those are the facts as I understand them. Now then, back to your question. There are certain questions that you don’t have to answer correctly. Let’s say you live in a state where you only have to declare a felony conviction on a job application for 3 years – and you’re filling out an application 4 years after you were released: you do not legally have to list that conviction (depending on the position you’re applying for).
Just re-read your question… Given this sentence “…you’ve ever had a bankruptcy in your past credit history”, I would say no, if the bankruptcy happened more than 10 years ago and has fallen off your credit report. The term “credit history” refers (in my opinion) to the 7 – 10 years that current credit can be reported.
What is the best secured credit card to help rebuild credit after a bankruptcy?
I am looking for something with no application fee, reasonable annual fee, reports to the major credit bureaus and possibly converts to an unsecured card after 12-18 months of on-time payments.
Help in connection with possible credit card application fraud please!?
My uncle is 62. He has recieved SSI monthly since 1970s and has not had to file income tax since late 1960s. He recieves $900-1000/month and lives in section 8 housing. He acquired credit cards by claimimg that his income was like $70,000/yr. Now he wants to file bankruptcy, but he is afraid he will get into trouble for application fraud. Will he? What should he do? He is in debt about $15,000 and his minimum monthly payments are about $400. We are afraid he will take another nervous breakdown or a heart attack. Any help or advice you could give us, his family, would be greatly appreciated. The rest of us are in no position to help him economically. He’s not really nuts, so an insanity plea is out of the question. Will they jail him? We are in California.
We thank you for your time.
Lyndon
capital one
Chapter 7 stays on your credit files for 10 years.
If you’re not employed, that’s also a major problem. If you have $500 in a savings account, the bank may allow you to get a secured credit card but you must tell them about the bankruptcy because they’ll find out when they run your credit report.
I have seen a number of elderly individuals lately who are attempting to make payments on large credit card debt from very meager cash flow, usually just Social Security. These people want desperately to pay their debts it is neither possible to pay them off, nor wise to make the sacrifices to do so.
Too many of our elderly are enduring continuing stress and scrimping on food, medical treatment, and emergency cash reserves in an attempt to honor their values about repaying their debts. In the case of credit cards and credit card interest rates, paying off this debt on retirement income is simply not feasible.
Debt ridden elders frequently are judgment proof: everything they have is protected by an exemption such that even a creditor with a judgment can’t take anything from them. Nonetheless, the worry and stress that debt accumulation causes is unhealthy.
Family and other care givers and professionals supporting the elderly should be alert for evidence of unmanageable consumer debt, and encourage the elderly to get legal advice on whether bankruptcy is appropriate for them. Elders are perhaps the one group who benefited by the recent changes in bankruptcy law.
As to the concern regarding the “false income” I wouldn’t worry too much about that, look at all those people who are now loosing their homes because they were told to pump up their income figures and the mortgage people didn’t even bother to verify the info.
Hope this helps
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
What looks good and bad on a credit card application? What increases/decreases chances of approval?
For example, are they less likely to give you a card if you don’t work, or list homemaker, or what not? Even if other members of your household or significant other is bringing in the money?
does where you live matter?
Do they only consider your credit score as being the single most important factor?
Also why are credit card applications getting more extensive? Now you have to list the total amount of money in all of your checking accounts, savings accounts, 401K, etc etc, other investments…whereas before you just had to fill in a simple little application and you were good.
I just always wondered what made a person more likely or less likely to be approved of a card.
I went bankrupt chapter 7 in early 2005, so as of right now my chances for getting anything are pretty much nil,but I have luckilly been approved of quite a few cards in 2007 & 2008, so I’ve been establishing credit history all that time…so you’d think that by now I’d be approved more easily, but I’m not. I apply once in a blue moon, and I still get denied.
The only bad thing I can think of is my bankruptcy.