Posted on: 06th Mar, 2010 09:31 pm
Declared bankruptcy 4 years ago. Was turned down by my bank of 5 years for a secured card. My mortgage of one year is in my wife's name. Basically I NEED TRADE LINES. I keep getting turned down for any loan of any type - and have only applied for 3 things which would register a hit on my credit in the past 3 years. What can I do here?
Hi dylan!
Welcome to forums!
What type of bankruptcy did you file for? If you filed for Chapter 7, then you won't be able to get qualified for a conventional loan prior to 4 years of your bankruptcy discharge. If you've completed 4 years of discharge, then you can apply for a loan. Getting a loan will also depend upon your credit score. If you had taken steps in these 4 years to improve your credit score, then it would be easier for you to get a loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
What type of bankruptcy did you file for? If you filed for Chapter 7, then you won't be able to get qualified for a conventional loan prior to 4 years of your bankruptcy discharge. If you've completed 4 years of discharge, then you can apply for a loan. Getting a loan will also depend upon your credit score. If you had taken steps in these 4 years to improve your credit score, then it would be easier for you to get a loan.
Feel free to ask if you've further queries.
Sussane
1. what is your score?
2. make sure all the items in the BK are marked on the credit report as part of the BK
3. have you tried for store cards or gas cards?
2. make sure all the items in the BK are marked on the credit report as part of the BK
3. have you tried for store cards or gas cards?
Is your wife willing to add you as an authorized user on some of her old credit card accounts in good standing? That's probably the fastest way to get some positive tradelines on your credit reports.
Unfortunately, adding ppl as an authorized user doesn't work anymore
It used to work in the old FICO system
It used to work in the old FICO system
The ECOA (Equal Credit Opportunity Act) precludes the removal of authorized users from credit-scoring models, and it will remain that way until Congress changes the law itself. Even FICO has said in public statements that they continue to include authorized user accounts in score calculations in order to comply with federal regulations.
Yes, the new FICO model is supposed to help lenders protect against authorized-user accountpiggybacking (those who pay to be added as an authorized user on strangers' accounts) by incorporating a new patent-pending technology that reduces any score impact. But that's completely different from legitimately adding my spouse or child as an AU on my credit cards. People have done it for a long time, and it still works.
Yes, the new FICO model is supposed to help lenders protect against authorized-user accountpiggybacking (those who pay to be added as an authorized user on strangers' accounts) by incorporating a new patent-pending technology that reduces any score impact. But that's completely different from legitimately adding my spouse or child as an AU on my credit cards. People have done it for a long time, and it still works.
When's the last time you did it?
Last FEW times I have done it....it didn't work and we waited months.
It used to be almost instant to see a new score
Either way...mortgage lenders have written guidelines to ignore authorized users....and will reject the loan app if all they see is the AU accounts
Lenders are going to look for at least 3-5 tradelines that is solely or jointly held by the applicant.
Last FEW times I have done it....it didn't work and we waited months.
It used to be almost instant to see a new score
Either way...mortgage lenders have written guidelines to ignore authorized users....and will reject the loan app if all they see is the AU accounts
Lenders are going to look for at least 3-5 tradelines that is solely or jointly held by the applicant.
4th Q of last year. I haven't personally added AUs to any of my cards yet in 2010, but I don't see why anything would be different now. The law is still the same.
It's certainly not going to get the OP into a new mortgage, but it can't hurt to try it and potentially get a few additional accounts with positive history on an otherwise empty credit report. That can often open up the door to other opportunities to build good credit.
It's certainly not going to get the OP into a new mortgage, but it can't hurt to try it and potentially get a few additional accounts with positive history on an otherwise empty credit report. That can often open up the door to other opportunities to build good credit.
It CAN hurt because lenders have been looking at stuff like this for a long time and it's a RED FLAG
I have seen matrices that contain restrictions for applicants with AU accounts. I have also seen DU/LP refer because of AU
I have seen matrices that contain restrictions for applicants with AU accounts. I have also seen DU/LP refer because of AU
It doesn't sound like the OP is trying to secure a mortgage since he mentioned his house is already in his wife's name. He just wants to get some positive credit history on his reports, and there's nothing wrong with one spouse helping out the other.
What do the acronyms AU, DU, and LP mean.
Thanks.
Thanks.
AU - automated underwriting
DU - Desktop underwriting
LP - Loan Prospector
and there are others that lenders use
DU - Desktop underwriting
LP - Loan Prospector
and there are others that lenders use
Also, AU= authorized user.