Banks, savings, and credit card

[shipo]

So, I have an idea, I'm sure said idea isn't even remotely original, and I'm hoping some of y'all have tried it and can offer your experience.

My "idea" is to stay in "Chapter 13 austerity mode" and effectively pay my savings account instead of the Trustee. At my current rate I figure I'll have an easy twenty grand saved by October. My question is, if I apply for an unsecured credit card through that specific bank, will they take into account the amount of savings I have on deposit?

When I say, "bank", I am referring to a major bank and not a credit-union as my bet is they may not have a delineation between their deposit account and credit card lines of business (unlike banks where I strongly suspect they are completely separate lines of business).

Returning to my question; I'm thinking on applying for an unsecured card in October and then ask for a reasonably high credit limit of say, $5,000. So, what do y'all think my chances are?

[justbroke]

Some banks care about the overall relationship, I think Wells Fargo is one, but unsecured credit really comes down to two factors; the applicants score under the scoring model used by the bank/lender, (in most cases) the applicant's income, and the applicant's overall debt-to-income ratio (DTI). The DTI is generally calculated based on what's already in the credit report, plus the applicant's income provided on the application. The creditor may also use the credit lines -- as reported to the credit bureaus -- as to what type of credit line an applicant may be able to handle; especially as it relates to revolving credit.

How each creditor handles these different data points is too creditor-specific. For example, some credit unions (CUs) such as Navy Federal look much more at the overall relationship and put more emphasis on the DTI while others are more traditional lenders and behave more conservatively.

I think your chances will invariably be dependent on your credit score, your existing credit profile, and your income versus your DTI. Some banks won't even like that you haven't been discharged for at least two years (and this is usually a National Bank issue). A CU may be a better place as they are usually lenders of discretion.

[shipo]

Thanks justbroke, I am fortunate in that my FICO is relatively high and my DTI is really favorable; long story short, I'm hoping to recover my ability to secure credit quick enough to allow me to buy a new home shortly after the 2-Year post-discharge time frame.

[justbroke]

Purchasing a home should not be an issue as the GSEs (government sponsored entities, such as Fannie Mae and Freddie Mac) will only look to see that your bankruptcy was discharged more than 2 years before applying for the mortgage. The GSEs will also look to your score, and the middle score only needs to be 620-640 (depending on overlay of the bank). The plus is that mortgage lenders still use the older scores (FICO 2, FICO 4, and FICO 5) which can be a blessing.