05 Nov 2018

Two bankruptcy questions (and answers) from our (smart) clients

Bankruptcy and tradelines was an often discussed topic on our forum. We discontinued our forum with our live chat, so our content needed a new home. Here are the two bankruptcy questions (answers… and comments).

18 NOV 2013

CAN I OBTAIN TRADELINES WITH A BANKRUPTCY ON FILE?

 November 18, 2013    Visitor    Bankruptcy     

Well, you can obtain trade lines with anything on your file. The real question is whether or not you should pursue tradelines as a technique to increase your credit score if the other things on your file would prevent you from achieving your goals. At the end of the day, your score is going to increase if you add positive lines of credit. However, whether your score increases to a relevant extent (such as positioning yourself into a position to obtain funding), is much more important to consider.

tradelines and bankruptcy

A similar question was posed by another client and we explained that he should only add trade lines if it makes sense for your goals. For example, if you’re trying to get a federally backed mortgage and a recent bankruptcy will automatically deny you for that mortgage, then it doesn’t matter if the trade lines worked or not.

There’s another issue as well. What’s the bankruptcy discharged or dismissed? If discharged, you probably be a better position because you have less debt. If it was dismissed, he probably be in a worse position because all the debt and potentially negative credit issues remain. So, as I do with most clients, I recommend you give us a call and ask us to perform critical analysis for your particular situation.

2 COMMENTS ON “CAN I OBTAIN TRADELINES WITH A BANKRUPTCY ON FILE?”

  1. Tracie says:

    MY ONLY CONCERN; CAN I OBTAIN TRADELINES WITH BANKRUPTCY IN MY HISTORY???

    Reply
  2. Mike says:

    Yes, you can obtain tradelines with a bankruptcy on file. The better question is “will they help me?” If your bankruptcy is under a year old, it is possible to enhance your scores, but what type of lending or new credit would you be able to obtain with a bankruptcy that has occurred so recently…more than likely not much.

     

Ironically, someone asked the next most relevant question. We answered it, well.

29 SEP 2013

USING TRADELINES TO BOOST CREDIT SCORES AFTER BANKRUPTCY

 September 29, 2013    Visitor    Bankruptcy     

Using tradelines after bankruptcy is a topic we discussed in many areas in her website, so sorry if this answer is a bit redundant. Depending on the outcome of your bankruptcy such as weather is discharged or dismissed, your credit score may or may not benefit from the addition of authorized user tradelines after bankruptcy. It was discharged you’re probably in good shape. It was dismissed you’re probably more shape than when you started.

tradelines after bankruptcy

Note: Don’t take the above image literally, but only for conceptual understanding.

In addition, there’s a reality to bankruptcy where the debts which are supposed to be discharged are inaccurately reporting. In these types of inevitable issues must be addressed prior to moving forward with credit and funding goals.

Assuming everything went well in your credit report is cleared up, yes, adding tradelines after bankruptcy can drastically increase your credit score. However, as we cautioned over and over again, make sure your goal is not closed out by an automatic underwriting denial such as the loan which you seek prevents anyone from obtaining it if they had a bankruptcy. At that point, what was your score matter?
The general answer is that trade lines will help after bankruptcy, but a full picture of your overall credit situation in goal must be taken into consideration to have a relevant answer. We’d be happy to discuss this with you.

3 THOUGHTS ON “USING TRADELINES TO BOOST CREDIT SCORES AFTER BANKRUPTCY”

  1. Marsha Clay says:

    I just got through a Bankruptcy, Chap. 7 a couple of months ago, I want to apply for a car loan and a mortgage within 6 months. Will I get approved for these loans since my bankruptcy has just been discharged not long ago? Would tradelines help boost my score up after it was lowered due to the bankruptcy?

    Thanks in advance for your input.

    Reply
  2. Robert says:

    Marsha,

    Thanks for reaching out to us. As with most complicated questions we receive, the answer usually starts with “it depends”. It depends on a lot of factors not completely addressed by your question, so I’ll go over what I can and ask some follow ups.

    First, bankruptcy really hurts your credit scores… at first. However, if you’ve successfully discharged debt and the negative information has been properly removed from your credit report, you should start to see dramatic increases in your credit score within 6 months (without tradelines). So, the first two question I have are 1) Did your chapter 7 bankruptcy go through? Meaning, was it discharged, is it pending, or was it dismissed? 2) If you’re bankruptcy was discharged, are there still negative elements remaining on your credit file that should not be there?

    There are two other considerations 1) credit scores, alone and 2) underwriting posture. After bankruptcy, provided everything worked out favorably to you, you could add tradelines the next day and your scores would shoot up. However, that brings me to point two 2) Depending on the type of loan you intend to obtain, the loan officer or underwriter is usually bound by strict policies. For example, you could have an 800 credit score and make a million dollars per year and you could be turned down for a mortgage because there is a “wait two years after bankruptcy” policy for most types of mortgages.

    So, do me a favor. Tell me 1) Was your bankruptcy discharged, is the negative items on your report that should be removed, how long ago was the bankruptcy discharged (not filed, but closed), when do you plan to be on your feet financially to apply for your mortgage and the auto loan?

    Thanks,

    Reply
  3. Issac says:

    What’s up, I would like to subscribe for this webpage to obtain latet updates,
    so where can i doo it please help out.

     

We’re hopeful that content was helpful. Let us know if you have any questions or comments below.

Leave a Reply

Your email address will not be published. Required fields are marked *

Boost Credit Score
Live Chat Online
Get Tradelines Now

Spelling error report

The following text will be sent to our editors: