I’ve actually been through this recently, and from what I saw, lenders were way more focused on my recent credit activity than the bankruptcy I had about eight years ago. The underwriter did ask about it, but once they saw it was discharged and I’d rebuilt my credit since then, it wasn’t a huge deal. They seemed more interested in a late payment I had last year, which honestly surprised me. It really does seem to come down to how you’ve managed things lately, not just what’s in your distant past.
Honestly, I had the same experience when I refinanced last year. My bankruptcy was from ages ago, and I was sweating bullets thinking it’d be the main thing holding me back. Turns out, the lender barely blinked at it. They grilled me more about a couple of credit card dings from the past year. It’s wild how much weight they put on recent stuff. Makes you realize you can’t coast just because the big stuff is behind you… lenders have long memories, but even shorter attention spans for old drama, I guess.
I’ve actually seen it go the other way, depending on the lender and the timing. Had a client last spring—her bankruptcy was about seven years old, but one lender still flagged it as a “concern” because it hadn’t quite dropped off her credit report yet. Meanwhile, another lender barely mentioned it but got hung up on a late payment from six months prior. It’s not always predictable. Sometimes I think it just depends on who’s reviewing your file that day... lenders can be a bit quirky.
I get what you’re saying, but I’ve actually found lenders tend to care a lot more about recent stuff—especially when it comes to late payments or collections. The bankruptcy, if it’s almost dropped off, usually seems less important than something that happened just a few months ago. Maybe it’s because recent issues look like ongoing problems, while older ones feel more like history? It’s definitely not always logical, though... kind of depends on their risk appetite that day.
I actually ran into this exact thing when I refinanced last year. My bankruptcy was almost off my report, but a late payment from six months ago was what the lender kept grilling me about. Like you said,
. Makes sense, but it still stings when something small and recent overshadows years of rebuilding. Anyone else notice lenders seem to have a short memory for improvement but a long one for mistakes?recent issues look like ongoing problems, while older ones feel more like history
