Will American Express approve your for a credit card if you have a prior bankruptcy? A reader, Ryan, had this question:

Hello- I filled for Chapter 7 BK eight years ago. Out of the blue, I called AMEX to see what the probability of me getting the Delta branded card and let her know about the BK. She said a 50/50 chance as they do approve them.

What is the likelihood of getting approved Mr. Credit Card? I’ve never made a late payment, am an “Authorized User” on another AMEX (Costco) card.

However, I have a feeling the second they see Bankruptcy it is immediately shot down and it isn’t even reviewed. At least other banks will review the situation. I have cards with every other major bank except Citibank. Of which I pay my balance off in full each month.

Thoughts/suggestions? Should I call in and speak to a manager? It is rather frustrating.

Ryan

Ryan,

Definitely call and speak to a manager. It will help if you know what your credit scores are.

I would call back and ask someone at American Express to tell you which credit score they use. The credit score they use for a decision could be from TransUnion, Experian, Equifax or FICO. Once you know which credit score they use to make a decision, you should purchase that credit score.

Once you know your credit score, call Amex back and speak to a manager. Tell them you have a prior bankruptcy, and your credit score is X. Just don’t hang up until you can speak to someone who can tell you for sure whether or not the bankruptcy will disqualify you. Best of luck.

What happens to your credit score when you close an account that you never activated?

Reader Terri had this question:

in Aug. 2008 I opened up a Master Card account with WaMu. Soon after I got approved and got the actual card, WaMu became Chase.

I did not activate this card. I have never used this card. This account has a $4,000 credit line. I have 2 other credit cards – BOA ($36,200) and AMX ($6,000). will my credit score be affected if i cancel the Chase account?

Terri

Terri,

Since you never activated the account, and you never made any charges, then it should not hurt your credit score if you close the account.

If you want to be very sure about that, then you can visit Annual Credit Report, and pull all three of your credit reports. If the account appears there (and it really should not) but if it does, it will impact your credit score.

Regardless you will see an inquiry from where you opened the account. This is not what you are worried about. Check to see if it shows up as an open, revolving line of credit.

If the account does show up as a current credit account for any reason then you should probably leave it open. Especially if you are carrying a revolving balance on either of your other two cards.

If both of your two other credit accounts are paid off completely, then closing the account is not that big of a deal.

Best advice: Check your credit reports, it’s the only way to be sure.

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This entry was posted on Tuesday, March 10th, 2009 at 07:45 and is filed under Bankruptcy FAQ. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.