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