Credit Cards for Bankrupt Customers

Guest: ahnold300
Post subject: Credit Cards for Bankrupt Customers
Posted: Sat May 13, 2006 2:47 am

Hello All,
I filed Chapter 7 BK seven years ago. My FICO is now ~740, but I have been receiving pre-approved credit card offers from two same companies that discharged about $10k each.

Question is - I like their offer and APR, but is it safe to re-do business with them? assuming they cannot re-load the previous debt - correct?

If I apply and they do not approve my "pre-approved" application because of history, then I have a hit against my score.

Opinions? thanks in advance, Ah

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Guest: JaneiR36
Credit Expert (100+ Posts)
Post subject: Credit Cards for Bankrupt Customers
Posted: Sat May 13, 2006 10:29 am

I don't remember where I heard it, but apparently certain companies are more eager to do business with post-bk customers. They know you've been in trouble before and are likely to get into it again. Then they can milk you for late fees, high interest rates, etc. Having done a bk before it may not be so easy for you to do another one (I'm assuming) and so bk customers can actually be pretty good for some companies.

Other than the bk issue, there's a risk of being approved or denied regardless of who you're applying with. The hit to your credit score is from the hard inquiry, NOT from whether or not you're approved.

Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Credit Cards for Bankrupt Customers
Posted: Sat May 13, 2006 10:56 am

If your FICO is around 740 now and your bankruptcy was 7 years ago, I doubt that bankruptcy would have any significant effect on a decision today about your credit worthiness. Obviously it isn't affecting your FICO score much, if at all, today.

Everybody's score diminishes a bit after a hard inquiry. It's usually 3-7 points on the FICO scores per hard inquiry (for the first dozen or so inquiries in the last six months). It's really nothing to worry about.

Guest: jlrdc909
Post subject: Credit Cards for Bankrupt Customers
Posted: Mon May 15, 2006 3:29 pm

I agree with JaneiR36. Most companies realize that going thru BK once most people wont go thru it again (or want to). I would read the fine print to make sure that they wont tack on a previous bad debt. Keep in mind that some companies keep a "black list" on past customers who have skipped out on debt.