Husband has better scores, but can't get approved for CC

[brokeinmichigan]

Get this...

My DH has had STELLAR credit all his life. The couple years leading up to our BK, his debt-to-income ratio was not great, but his credit scores remained solid...over 700 consistently. Mine, however have NEVER been great. I have lots of old charge offs, etc...and my scores at time of filing were in the low/mid 500s.

We filed CH7 last April, and were discharged in August. We subscibed to the TrueCredit tracking, and his scores are 685/568/685 (FAKO?). Mine are still in the 500s.

When we set out on our recent vehicle hunt, the finance guy at the dealership runs our credit reports, and low and behold, my FICO was 681, and my husband's was LOWER (630). How can that be? I know that FAKO scores are always somewhat lower, but it would seem that his FICO should still be higher than mine, because his FAKOs are higher. CAN SOMEONE EXPLAIN? So, we went with me as the primary purchaser...we're both on it, but I was shocked!

Also, I applied for, and was approved for a CapOne card online a couple of months ago...no problem...approved in seconds! My husband applied for one online last night, and was denied! I'm so confused.

If anyone can enlighten me, I'd be most curious how this happens. He clearly has better long-term credit history than me...never had a charge-off or late payments (until just before filing BK). He has better FAKO scores, but somehow has a lower FICO. WHAT???

Thanks in advance for any feedback!

[brokeinmichigan]

Anyone have any ideas re: above?

[jal1129]

The only way to know for sure whats going on would be to pull all 3 of his and your reports and compare them. Then also pull all 3 of your myfico's to see where you stand. From what I understand car dealerships don't pull a true fico score. Thier scores are schewed (sp?) more towards your car loan history and they use a different formula than fico. I have also heard that true credit is useless even for tracking purposes as some people report truecredit showing scores tracking downward when thier fico's are actually going up. Truecredit uses a different scoring model than fico.

As for why you were able to get a cap one and he could'nt possibly since you already had one they thought your scores and history as a household did'nt support having 2 different cards. JMHO

[brokeinmichigan]

Thanks jal1129~
We've pulled all 3 reports. His are definitely much better than mine! He has had virtually no late pays, no charg-offs, etc. Mine is riddled with both (from the past). OF course, both of ours show the BK. I'm still working at getting everything to report correctly as IIB and zero balance. His car loan history was better than mine, too. Just can't quite figure it out. He was approved online for an Orchard Bank card yesterday.

[jdmc1973]

Maybe they're approving you based on your past history and bankruptcy thinking that you might get caught up in using cc again and not be able to pay. Since you can't file bankruptcy again for several years, they'd have you over a barrel. Your husband on the other hand had a good history and they might figure they can't make any money off him. ??? I dunno, I just don't trust cc companies and I'd assume they'd do anything to make money off people any way they can.

[cap350z]

I totally understand what your husband is going through right now. My sister and I filed chapter 7 at the same time. And she has always had a poor re-payment history and plenty of charge off as well. But two years later, she calls me and tells who has pre-approved her and extended her credit. And even after the bankruptcy she still has racked up two discharges. As for me I haven't paid a bill late in over two years....I only get pre-approvals from the sub prime places. Or when I try to visit the same places my 'sis got approved for. I'm turned down flat and grabbed by the collar and escorted out of the stores by the seat of my pants.

I truly believe that it depends on who is approving these applications. And some slip through the cracks.

[Flamingo]

Anytime there is a BK on your record, it is an immediate black mark. It is up to the lender whether or not they want to give anyone credit as soon as the BK is revealed. Many lenders will not lend to anyone with a BK on their record especially if the debtor included that lender in the BK filing. Some are more lenient (i.e., Orchard Bank, Washington Mutual, etc.). Some are scum from the barrel bottom (Aspire, etc.). Some will view your previously credit history if it is good as a positive, some will not. The only thing that helps as to your scores and credit is time and paying consistently and on time for every bill you have over the coming years and not running up too many hard credit inquiries during that time as they can hurt you also (they remain on your reports for two years now; used to be one year).