How long after bankruptcy will it take before I can get a credit card with at least a $2,000 limit?
Posted in Credit on 02/09/2009 07:21 pm by admin
Zachary asked:
I filed bankruptcy in April of 2006 and it was discharged that August– My score has gone from the low 400s to the high 500s, and will flirt with the low 600s. I’ve been trying to reestablish my credit with about 5 credit card, but they all have LOW limits, which is hurting me (although having the multiple cards open is what has increased my score). I can’t get my score any higher because my limits are so low, which is showing that creditors aren’t willing to trust me. I have paid EVERY account I have on-time for more than a year and half (although for some reason my credit report still says I’m deliquent, and I can’t figure out why it says that). I need to get a card with a decent limit so that I can close these accounts that charge $150-175 for annual fees, not to mention show that I can be trusted with credit. Where or WHO can I go to to issue me a card with a decent limit– OR how long will it take before regular creditors will finally look at my applications & approve it?
FEDERICO
I filed bankruptcy in April of 2006 and it was discharged that August– My score has gone from the low 400s to the high 500s, and will flirt with the low 600s. I’ve been trying to reestablish my credit with about 5 credit card, but they all have LOW limits, which is hurting me (although having the multiple cards open is what has increased my score). I can’t get my score any higher because my limits are so low, which is showing that creditors aren’t willing to trust me. I have paid EVERY account I have on-time for more than a year and half (although for some reason my credit report still says I’m deliquent, and I can’t figure out why it says that). I need to get a card with a decent limit so that I can close these accounts that charge $150-175 for annual fees, not to mention show that I can be trusted with credit. Where or WHO can I go to to issue me a card with a decent limit– OR how long will it take before regular creditors will finally look at my applications & approve it?
FEDERICO
02/12/2009 at 5:43 pm
VALENTIN
Well Zach, even though your bankruptcy is “discharged” it will be on your credit report for ten years. Just keep plugging away with what you have and maybe at some point one of your current cards will increase your spending limit.
02/15/2009 at 12:36 pm
JOESPH
open a prepaid visa with your bank. Put in $5,000 and make the payments on time for 6 months. Then go to them and ask for a regular card.
If you don’t have $5,000 to start this with, you should probably not be using creditcards anyway.
02/15/2009 at 8:58 pm
ANTWAN
Hello, I too have filed bankruptcy back in fall of 2005 and within 1 year I recieved an offer from Washington Mutual in the mail, so I replied and they sent me an unsecured plat visa with a 1500.00 credit limit with no fees and an average interest rate. I waited for offers in the mail though and did not try to get them on my own without offers. So long story short wait for offers and within 1-2 years you should be able to get them.
02/16/2009 at 2:42 pm
VALENTIN
It takes 7 years to restore your credit. You mention that you pay your bills on time but what you should do is pay them off. It will show good faith in payment. Also you mentioned the annual fee is high (with good reason – you are a risk), so I assume that your interest rate is high as well. Also the more cards you have the lower your rating will be. Pay off the current cards first before opening more credit. When you pay them off have the credit card company mail you a closure & paid notice so that you have proof that they are paid off. This will also increase your credit score as well as your limits.
02/18/2009 at 2:44 am
ABRAHAM
It sounds like you’re off to the right start and will be filing BK again in no time soon. You say you have 5 cards, that;s a great start.
You can get a card that is connected to a deposit. I suspect that’s not what you’re looking for though.
Realisticlly it will take several years.
A BK is the lowest rating you can get and some banks will NEVER issue a card to those with BK.
Contraray to popular belief, it does not stay on the credit report for 7 years. each creditor has the option of renewing the claim 3 times (that’s 21 years). Additionally, a BK is a governmentally filed document that ALWAYS remains (like an arrest report).
Regular credit is reported in 7 year increments but BK’s, as we in the credit business like to say,
“A BK is forever.”
Good luck.
02/20/2009 at 1:20 pm
BENITO
I’m concerned that you are opening so much credit so soon after your bankruptcy filing. You are not a risk because of the bankruptcy filing, it’s the multiplicity of credit card in respect the the bankruptcy filing. You most likely are not able to receive credit because of your debt to income ratio. If the accounts are paid in full, you may want to close a few to lower your debt to income ratio.If your credit report still states that you are delinquent, then you need to dispute that with the credit bureau. If those delinquent debts were in the bankruptcy, then you need to provide the credit bureau with a copy of the discharge order and that issue should be easily resolved. Also, if you are apply for credit often, that makes you appear risky as well as the lender request your credit history and see who has been requesting your credit history as well as well as when the information was requested.
02/22/2009 at 10:38 am
MARCO
You first need to make sure your credit report is accurate. If you have accounts that were included in the bankruptcy and are still reporting currently delinquent this is hurting your score. You need to send a dispute to the credit reporting companies(TransUnion, Experian, Equifax) and for each item that shows and let them know it was included in the bankruptcy. They will then adjust the amount to 0 and report it as included in bankruptcy. If you don’t already you can get a copy of your credit report for free from each of the three, once per year. You need to go to to do this.
The next thing you need to do is use the cards you have to show a good payment history. This means to charge them for an item you would be getting anyways, and then paying it off at the end of the month, and pay on-time. This shows activity and that you can handle credit. The only thing you need to be sure of is to not go over 30% of your limit on the card. With low limit cards it can be tough, and may only be 1 purchase a month.
After a while of this check with the companies you have a credit card with already. They generally will do reviews every 9-12 months and give you an increase if you have a good history. But you can ask before that to see if they will. Most new credit you apply for will use your current limits as a guide. So if they are all at $300-$500, any new company will probabably not give you more than $1000. But if you get to a limit of $1000-$1500 the next company may trust you with a 2,000 or more limit.
02/24/2009 at 4:11 pm
AHMAD
Challenge the bankruptcy through credit repair. Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters—this is the key…..people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact.