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I'm on the road to improving my credit and eventually get a 660 and higher FICO score. What I'm wondering though, is that when applying for any/all major types of credit (a house, apartment, car, etc), would I be turned down because of the Chapter 7 still being on record? I've seen landlords in the renting section of this forum say they don't rent to people who've had bankruptcy within a certain amount of years (maybe 5, can't remember). So again, would a good FICO score be enough to overcome a bankruptcy and previous bad credit?
I'm on the road to improving my credit and eventually get a 660 and higher FICO score. What I'm wondering though, is that when applying for any/all major types of credit (a house, apartment, car, etc), would I be turned down because of the Chapter 7 still being on record? I've seen landlords in the renting section of this forum say they don't rent to people who've had bankruptcy within a certain amount of years (maybe 5, can't remember). So again, would a good FICO score be enough to overcome a bankruptcy and previous bad credit?
It all depends on the credit policies of the seller. An auto dealer desperate and under pressure to clear inventory may lend the money. A bank probably wouldn't. But this is just a general sense I have of the mechanics. 660 is still very low so who knows?
A 660 FICO is mediocre at best. Absent of the Ch.7 filing I'm sure it would be higher, but FICO may drop your overall score due to the filing.
With that being said- it all depends on the creditor. Some banks have minimum score requirements that may differ based on what you are trying to finance. A 660 may enable you to finance a car at above prime rates, but that score may not enable the lender to underwrite a mortgage (to be sold on the secondary market).
Some smaller community banks or regional banks may take credit score and situation into account and possibly perform an in-house mortgage, usually an ARM product. In any event the answer to your question is best found by making appointments with some local banks ans simply asking them.
The FICO is based on all the issues in your credit bureau, of which the bankruptcy will be a large part. It's not just one line of your credit bureau that says "Bankruptcy". Every account you included in the bankruptcy will be tagged as a "Charge Off" and will further lower that FICO.
So saying you have a good FICO to offset the bankruptcy would not happen.
By the way 660, is not a good FICO score. You'd be better off having a goal of 775+
It depends upon what else is on the credit report. 660 score isn't marvelous. The bankruptcy will make it difficult to rent.
No problems with buying a car. They'll give a car loan to anyone. Really bad credit just pays a really high interest rate and doesn't get any bargains on the car's price.
I've rented to someone with a bankruptcy discharged just a month before she moved in. However, there was not so much as single late payment on her credit report. She lost her job and lost her income. She had enough income to pay rent on a small house but could not make her house payments. Without a single late payment and enough income, I had no problems renting to her.
So, a bankruptcy is not necessarily the kiss of death for renting, but it can be if your credit report shows that you have a history of not paying your bills.
As for getting a mortgage, I don't know what you would encounter. Mortgages are harder to get than they used to be. The amount of down payment you can bring to the deal has an effect on whether or not you can get the mortgage. (Down payment makes a difference on the car loan, too)
By the way, if your credit score was really low at the time you applied for the bankruptcy and you have gotten that score up to a 660 since then, you are on the right track. If your score was in the low 500's and you've gotten it up to 660, keep on doing what you are doing.
If you've gotten the score up to 660, and you keep working on it, you'll get it up over 700, and then your credit starts looking pretty good. I think that mortgages need abut 720 and over to get the good rates, but you are headed in that direction.
660 for me was only a starting point, as I did say I planned to go higher. I mention this number due to a couple sources I viewed as having 660 as being a good starting FICO score. Seems there's several different charts, is there an official FICO score range?
It depends upon what else is on the credit report. 660 score isn't marvelous. The bankruptcy will make it difficult to rent.
No problems with buying a car. They'll give a car loan to anyone. Really bad credit just pays a really high interest rate and doesn't get any bargains on the car's price.
I've rented to someone with a bankruptcy discharged just a month before she moved in. However, there was not so much as single late payment on her credit report. She lost her job and lost her income. She had enough income to pay rent on a small house but could not make her house payments. Without a single late payment and enough income, I had no problems renting to her.
So, a bankruptcy is not necessarily the kiss of death for renting, but it can be if your credit report shows that you have a history of not paying your bills.
As for getting a mortgage, I don't know what you would encounter. Mortgages are harder to get than they used to be. The amount of down payment you can bring to the deal has an effect on whether or not you can get the mortgage. (Down payment makes a difference on the car loan, too)
Appreciate your replies, this is helpful. As for the bolded, this is exactly what I'm wondering. I HAVE (past tense) had a history of non-payment, however I've never been late on rent-- could furnish three different landlords w/ a positive reference for this. Utility bill may not matter, but I have this if it did.
With the FICO score, I thought this took into account payment history and what not, and it takes a while to get a high FICO score, i.e. a long enough time of paying bills on time. So a high FICO score wouldn't be enough to overcome a history of non-bill paying and a chapter 7 still on record?
Appreciate your replies, this is helpful. As for the bolded, this is exactly what I'm wondering. I HAVE (past tense) had a history of non-payment, however I've never been late on rent-- could furnish three different landlords w/ a positive reference for this. Utility bill may not matter, but I have this if it did.
With the FICO score, I thought this took into account payment history and what not, and it takes a while to get a high FICO score, i.e. a long enough time of paying bills on time. So a high FICO score wouldn't be enough to overcome a history of non-bill paying and a chapter 7 still on record?
You cannot have a high FICO with a history of non-payment and a bankruptcy. Your FICO is BASED ON your history.
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