Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Bankruptcy
Profile Image

Question By
JillsMyName

0 Contributions
0 People Helped
Does a Bankruptcy Impact Your Credit Rating Less as Time Goes On?
I filed bankruptcy nearly 9 years ago and I know it will be on my credit report for 10 years. Does the impact the bankruptcy has on my credit score diminish the older it is? I just bought a new car, so it's not an automatic rejection by all (though the interest rate was impacted by the bankruptcy, no doubt) but some credit card companies indicate that they have declined me strictly based on the bankruptcy reflected on my credit report.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7363 Contributions
3809 People Helped
Most Helpful Response

Time works for the better.

Helpful to 1 out of 1 people

I filed a Chapter 13 in 1993 so you know my credit took a "HIT" until the notice of BK dropped off my credit report in 2003.  It has taken a bit of time and things aren't perfect but, I did get to consolidate my credit cards this year and the new card has a substantially higher credit limit and a lower interest ra te than any before.  I did keep the older cards so  I show a much higher available credit than before and that helps the credit score.  Last car I bought in 2005, I used proceeds from sale of my last house and paid cash (1 year old used car) and they tried financing but that was not going to happen, which I already knew. 

If you continue to get declined for credit cards, or if you just want to avoid the hassle and hard inquiries, go for a secured card.  You deposit a few hundred dollars in the issuer's bank and that is your credit limit for the card. While the interest is high since secured cards are usually obtained by new holders or those who did go bankrupt, it shouldn't make a difference to you if you use the card carefully and pay the bill in full every month.  And after several months to a year, the card may be converted to a "regular" credit card with a higher credit limit.

Hope this helps.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.