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New Member
Posts: 8
Registered: ‎02-25-2014
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

I'm so excited to start this plan and want to follow it as closely as possible. However. I don't live in Nevada and I'm not related to any military or anything like that. I have searched for credit unions that allow anyone to join and offer credit building loans but Google has failed me. Any advice? I live in Missouri. Originally from Pennsylvania.
New Member
Posts: 8
Registered: ‎02-25-2014
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Also, would it make that much of a difference if I got a credit builder loan type thing from an establishment other than a credit union?
Valued Contributor
Posts: 1,977
Registered: ‎07-12-2012
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Welcome to the boards Morgan! You will have to call the credit unions and inquire about their outlook towards someone with a BK. It is not easy and will take some time, don't give up though!

 

http://www.bankrate.com/brm/news/cu/19990526c.asp

 

Here is a link I found to start you out. Have a good day and happy rebuilding!

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
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718 TU FICO 03/2015
679 EX FICO 03/2015
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Established Member
Posts: 12
Registered: ‎11-14-2012
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

1) Credit Union Locator  this is from CreditUnion.gov.  Just put in your zipcode. It defaults to a 5 mile radius, but you can expand that if in rural area. I'm in St Louis, and there are numerous ones out here. In St Louis, you pretty much just have to live in the Metro area.

 

2) Your biggest obstacle would be if you had any Banking issues. Even if discharged, Banks & Credit Unions use Chexsystems and other like-programs that can keep one from opening an account. Again, this can be entirely separate from any bankruptcy. If no Banks/Credit Unions closed accounts on you, then this wouldn't apply.

 

3) If #2 doesn't apply, then it's just a matter of contacting their Call Center/New Accounts if you can, and seeing about an account, even just a Share/Savings account to start if need be.

 

 

--------------------------------

 

As to the OTHER type of Credit rebuilder loans, stay away from any of those cash payday places. Really try to spend the time with getting a Credit Union account opened up.

 

Hope that helps,

Larry


Starting Score: 589
12/1/2012 Fico EQ 651 Fico TU 637 CK TU 608 0

07/15/2013 Fico EQ 674 Fico TU 652 CK TU 651 0
Goal Score: 705+

Current Score:
9.21.14 FICO EQ 686

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7/13/2013 Fico EQ 674 TU Fico 652
Established Contributor
Posts: 999
Registered: ‎11-08-2011
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Welcome to the plan Morgan!

 

Navy isn't a requirement for the plan at all. And in theory you don't need a "Credit Builder" product if you've got some cash you can tie up for literally 5 mins.  The alternative is to use a Certificate (CD) or Share-secured loan.  All credit unions have those, most don't HP for them, and the rates are all reasonable.  You give them $1000, they put it in a 1yr CD @ X%, they loan you $1000 right back at X+Y%.  Y is usually right around 1.5.

 

So if you can't find it, don't despair too much, just use the above alternative.

 

Also, I think DCU is open to everyone and they might have have a credit-builder type loan.

 

Wishing perfect patience upon you!

 

-SM

 

 

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of 3/15/14 All 700+. Last CR pull from a lender(housing) was mid-score 729.
Goal Score: 700+ - reached.
New Member
Posts: 4
Registered: ‎02-07-2008
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Soulmaster:

 

what is your opinion if you follow this guide, but throwing an auto loan into the mix?

Established Contributor
Posts: 999
Registered: ‎11-08-2011
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Officially my position is that anyone who wants to finance a car needs to:

 

A. Read the Dave Ramsey car buying method

B. Watch more Top Gear where they constantly buy really good cars for sub $2000 or even sub $1000

C. Don't.

 

Another good read is Millionaire Next Door.  As it turns out, the fastest way to becoming a millionaire on a reasonable salary is simply to never pay interest on anything but a house and save that interest in a good investment instead.

 

Once all of that has been read a couple times, if someone has 6mo of living expenses cash-money in an emergency fund and really wants to waste some money:

 

1.  Buy used or certified pre owned

2.  Put 10% + tax, title, fees down so you don't start "underwater"

3.  Finance as short as possible, making sure that your car payment is no more than 10% of your monthly take-home-pay.

4.  1 year post bk (and on plan) I've had several clients get sub-3% used car interest rates on good used cars.

 

In that case, the car loan would be a substitute for the second credit builder loan.  I still don't recommend them, though.

 

All that said; Earlier today I financed $5000 of a $14000 used motorcycle purchase that I could have easily paid cash for.  I hate that the credit-score game requires "mix of credit" to boost for a house 6-12 mo from now.  The instant my mortgage funds, I'm paying off this nonsense.  To be clear, my 2nd credit builder loan (2years/$2k) ended in Jan and I no longer had an active mix of credit.  Got the best rate the bank offers anyone on a 2 year collateral loan.  Still ticks me off.  I hate interest and may pay it off early and just do another credit builder.

 

-SM

 

 

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of 3/15/14 All 700+. Last CR pull from a lender(housing) was mid-score 729.
Goal Score: 700+ - reached.
Established Member
Posts: 22
Registered: ‎02-22-2014
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

But if the deed is already done, what are your thoughts on refinancing? In particular with Cap1 Auto? Ok @ 12 mos after initial loan, or sooner? Or wait longer and try with different creditor?

Starting Score: EQ=589, TU=594, EX=??
Current Score: EQ=612, TU=594, EX=??
Goal Score: EQ=700, TU=700, EX=700
Longterm Goal Score: EQ=800, TU=800, EX=800


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Established Contributor
Posts: 999
Registered: ‎11-08-2011
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

If you have done your research, have a 90+% chance of approval that will lower your interest rate (considerably) WITHOUT extending the terms of your loan, then go for it.

 

The thing most people forget is that ammortization tables front-load the interest so a lot of people who refinance wind up paying the interest twice.  If you have 3 years left, refi into a 3 year note.  If 2, then 2 and so on.

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of 3/15/14 All 700+. Last CR pull from a lender(housing) was mid-score 729.
Goal Score: 700+ - reached.
Valued Contributor
Posts: 1,303
Registered: ‎11-14-2013
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Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Can't wait to start this - I am going to talk to my local CU on Monday that I just opened a savings account with and go from there.  I really need to wait a few months post-BK to start because I have so many darned inquiries. :smileysad:

BK Discharge 2/11/14

Currently in the garden.
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