Declined first attempt at cc

[Miknan]

Applied for a $500 limit unsecured (secured loan not offered there) at my local CU. I've been there 15 years, have $10k in savings, have about $3k automatically deposited from my work each month, paid off on time a $24k auto there last year, paid off on time a $5k camper loan through them. They said my FICO was 670 (but house isn't foreclosed yet) but I was turned down. I thought I'd get it and am pretty discouraged. I do still have a $1000 line of credit loan through them I got when I first opened the bank account. The girl said each month I should transfer $50 into checking then pay it off before the due date. Will this really help at all? Should I wait until my house finally forecloses before I try anything again? I don't want to be turned down before I have a realistic chance of being approved. I haven't got any offers in the mail like others seem to get. This whole thing sucks.

[justbroke]

What was the reason they turned you down? They must provide a reason and disclose the source of the information if they used a credit bureau (or consumer report). IS that mortgage through the same CU?

Do you really need a card right now? If you have that much in savings (in your share account), I'm sure they would be wise to offer you a secured card by pledging a portion of that savings. I mean, you can ask for re-consideration or tell them that you'll move your $10K in savings to a credit union that appreciates your number of shares.

Your local CU may just be "too" small.

[Miknan]

My wife is the one that talked to them when they turned us down. She said it was because they don't approve someone who is going to go through foreclosure. I don't know what source they used. They asked about the house and we told them our plans. The mortgage is not through this CU.

With all the great payment history I had with them, the amount in savings, the amount directly deposited there each month, and an explanation of what led to this (wife has chronic disease) I thought we'd be approved but I was wrong. I'm irritated enough I WOULD change banks but that open line of credit through them might prove useful.

I don't need a credit card, in fact I don't even want one. I just want to start rebuilding my credit as fast as possible so I can refinance my probable land contract I'm going to do. After the foreclosure on my current house I'll likely be in the lower 500's. How long does it take to rebuild back to 700? Should I wait until the actual sheriff sale to try another more BK friendly credit card? Our current payments that will show up is that CU line of credit, my wife's Kohls card still works, and payments on our currently deferred student loans will start up again.

[mountanddo]

One reason why I wouldn't disclose what my plans were until you actually do it. Unless they saw that you hadn't been paying on the house I'm not sure what the reasoning would be in asking you that question.

[Miknan]

They saw we haven't paid in a long time and asked. We didn't volunteer until they asked us. My credit rating is 670 now before the forclosure so I thought it would be good time to try and get a credit card.

[mountanddo]

They saw we haven't paid in a long time and asked. We didn't volunteer until they asked us. My credit rating is 670 now before the forclosure so I thought it would be good time to try and get a credit card.

Well, that's understandable then why they might not want to give you a CC. Even though you have money in savings with them and $1000 credit line if you aren't paying your mortgage then you are seen as a credit risk. Why bother rebuilding now if the foreclosure is going to knock it back down. I would just wait until you are out from under the house and then start.

[ValleYum]

The foreclosure should not knock the credit score back down, though. The debt was included in the BK. This is how I understand it to be.

[panda]

As long as the home was included in the bankruptcy, which is what you had to do unless you reaffirmed, you will not take another credit score hit, it should be showing as IIB with a zero balance on your credit report right now. What "may" happen after your foreclosure is that it may be reported in the public notice section where your bankruptcy shows up on your credit report, but because of the bankruptcy it will not be counted against you again as far as the scores go. It also shows up through public record searches if you apply for another home loan.

I have personally received two credit cards, one from cap 1 and Orchard, with scores right around 640 to 650 right after (within 1 month) of discharge and then a car loan through the credit union we have for about 17k with a 4.5% loan and the offer of a credit card through them after 3 of on time payments. AND my foreclosure has not gone through yet and probably won't for at least another year (we are renting though, as we moved to a new state). I think it may depend on where you are looking for credit. I think , in your position, I would go in to several other credit unions and talk with the credit people and ask them if you switch to them, what will they be able to offer you. The answer is always no if you don't ask, which is what I was expecting for us, until my husband started doing the asking at the credit union. Good luck with this and keep us posted, as others have good ideas as well and will probably chime in some more.

[sassiebaz]

Any chance they may now close your line of credit...I mean now that they know you will be foreclosing?

[Amy26]

I'm curious if your mortgage is actually reporting properly on your credit report. If its at a zero balance and is reported as IIB, then I can't see why they would even question it. Even if it hasn't forclosed yet, it should still be reporting this way (assuming you didn't reaffirm it?).

[Miknan]

I think it is reported properly. They just saw that no payments have been made in 9 months and asked. If we had lied we probably would have got it. Ironically, we are now tryin to save the house but there is a major issue I have to find out first.