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sgreenrealtor
Posts: 1
Registered: ‎05-19-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Wow! I wish I would have read this prior to getting into the mess I am in. I was released from chapter 7 05/01/2013. Immediately, I applied for Capital One and Credit One and I was approved for both with a 300 limit. This is the only credit that I have been able to received. i recently defaulted on one of my student loans and I am in a repayment status with them . Both credit cards are maxed out. My purpose for trying to rebuild credit is to get a new car with a low interest rate and to purchase a home. Please help me. I really need a loan to help pay off some of my current debt so that I can get caught up. My credit score is in the low 500"s what is your recommendations?

Member
twanswife916
Posts: 16
Registered: ‎05-10-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


sgreenrealtor wrote:

Wow! I wish I would have read this prior to getting into the mess I am in. I was released from chapter 7 05/01/2013. Immediately, I applied for Capital One and Credit One and I was approved for both with a 300 limit. This is the only credit that I have been able to received. i recently defaulted on one of my student loans and I am in a repayment status with them . Both credit cards are maxed out. My purpose for trying to rebuild credit is to get a new car with a low interest rate and to purchase a home. Please help me. I really need a loan to help pay off some of my current debt so that I can get caught up. My credit score is in the low 500"s what is your recommendations?


Have you applied for the income-contengency repayment plan for your student loans or forbearance. This helped me out a great deal when I had financial trouble. 

BK Discharge 7/29/14

Starting Score:PRE-BK EQ 470 EX 430 TU 430 (via MyFICO)
Current Score: EQ 571 EX 531/CreditSesame 551 TU 571/CreditKarma 529
Goal Score: 700 ALL
1st Premier Bank $300 & $400, Victoria's Secret $250, Metrostyle $250, $2000 NLFCU Unsecured Loan
Community Leader
Senior Contributor
StartingOver10
Posts: 3,832
Registered: ‎03-06-2010

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


sgreenrealtor wrote:

Wow! I wish I would have read this prior to getting into the mess I am in. I was released from chapter 7 05/01/2013. Immediately, I applied for Capital One and Credit One and I was approved for both with a 300 limit. This is the only credit that I have been able to received. i recently defaulted on one of my student loans and I am in a repayment status with them . Both credit cards are maxed out. My purpose for trying to rebuild credit is to get a new car with a low interest rate and to purchase a home. Please help me. I really need a loan to help pay off some of my current debt so that I can get caught up. My credit score is in the low 500"s what is your recommendations?


Two suggestions for you:  1) pay off your cards and if you don't have the funds to pay them off, then either sells things around the house (craigslist) or get a second job and 2) check your credit reports at www.annualcreditreport.com   It is highly unusual that you would be in the low 500's after almost a year from discharge. I have a suspicion that it is totally due to utilitzation or an error on your credit report.

 

You can NOT borrow your way out of debt. Getting a loan to pay off the cards when you were just discharged from Bk is not the way to go for you. First of all you are only taking about a total debt load of $600.  If you don't have $600 then see my first paragraph to you. You can do this.

Established Member
Larryhay
Posts: 10
Registered: ‎11-14-2012

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


sgreenrealtor wrote:

Wow! I wish I would have read this prior to getting into the mess I am in. I was released from chapter 7 05/01/2013. Immediately, I applied for Capital One and Credit One and I was approved for both with a 300 limit. This is the only credit that I have been able to received. i recently defaulted on one of my student loans and I am in a repayment status with them . Both credit cards are maxed out. My purpose for trying to rebuild credit is to get a new car with a low interest rate and to purchase a home. Please help me. I really need a loan to help pay off some of my current debt so that I can get caught up. My credit score is in the low 500"s what is your recommendations?


Unfortunatley, it is VERy realistic to still have a score in the low 500's, if, after bankruptcy, you have gone into default on student loan, and, it seems that Both cards are maxed out. A $300 limit credit card should never go to statement date with a balance over $90 (30%). Anything more than that, and you are going to lose major points.

 

I would say you need to slow down and realize this is going to take a while to rebuild, not something that a major wand  wave is going to cure in the next 3-6 months to get a home loan. Not saying that is where you are at now, but perhaps you were right after your Ch & d/c.

 

The premise of the 700 score is 2 years or less after a clean slate of debts, and yur timeframe would be hindered by what happened even after the Ch-7.

 

That said, it absolutely can turn around. as someone else correctly mentioned, your total credit cards if maxed out shouldn't be over $600 , so we arent taking a huge obstacle. You MUST treat that low level Credit Card like a debit card, omly using if you have the funds available. Use it for $30 for gas, and then pay it off with a checking bank transfer payment, that type of thing. Since you already have them maxed out, don't use it for anything, and get each of those cards under $100 as soon as you can.

 

 

FInally, sign up for free Credit score estimates through CreditKarma and Credit.com and CreditSesame. THis will give you at least monthly free Credit Scoreboard of your actions. I t might take 3 months or more, but slowly and consistantly, if you pay ALL things on time, and keep your Credit Card statement balances under 30%, you will achieve progress


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

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

Take the FICO Fitness Challenge



7/13/2013 Fico EQ 674 TU Fico 652
Established Member
northface28
Posts: 33
Registered: ‎11-30-2013

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!


sgreenrealtor wrote:

Wow! I wish I would have read this prior to getting into the mess I am in. I was released from chapter 7 05/01/2013. Immediately, I applied for Capital One and Credit One and I was approved for both with a 300 limit. This is the only credit that I have been able to received. i recently defaulted on one of my student loans and I am in a repayment status with them . Both credit cards are maxed out. My purpose for trying to rebuild credit is to get a new car with a low interest rate and to purchase a home. Please help me. I really need a loan to help pay off some of my current debt so that I can get caught up. My credit score is in the low 500"s what is your recommendations?


To echo what others have said you CANNOT take a loan to pay back $600. It makes little financial sense, maybe you can pick up a part time job on nights or weekends to pay down that debt and start  setting money aside for an emergency fund so you arent so dependent on credit. I hate to say it, but if you show the inability to manage $600 in credit cards you will have a tough time getting approved for new car loan. If I were you Id strongly consider looking at certified pre-owned when it comes time for a new vehicle. Good luck.

Member
Mike8181
Posts: 19
Registered: ‎05-20-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

In applied for cap on the day pacer showed my ch7 as dismissed. Was asked for income verification and got a $2000 limit.

A week after the discharge a student loan I co-signed for is also showing up with 2 years of payment history.

What now? Should i still apply for credit one? Or wait for a while until cap one shows a payment history and try for a "better" card?

Member
Mike8181
Posts: 19
Registered: ‎05-20-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Ofcourse I meant discharged!
Valued Member
Delia72
Posts: 33
Registered: ‎04-23-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

bump.

BK Discharge 5/6/14
Quizzle Score EQ 585 as of 7/14
TU 637 as of 7/14
Credit Sesame EX FAKO 653 as of 7/10/14
Goal 700 + home purchase

Cap 1 Unsecured Plat PC'd to Quicksilver
New Visitor
samanthas004
Posts: 1
Registered: ‎05-20-2014

Re: HOW TO: From BK7 discharge to 700 in 24 months or less!

Hi All,

 

I just found this forum and am thankful for the valuable information everyone has given. As others have said, I wish I found it sooner being as though I am 4 years out of BK. Here's my situation:

FIled BK: 4/05/2010

BK Discharged: 8/16/2010

Current Credit Scores: EQ: 627 EX: 653 TU: Unknown

 

I currently have a home that I have a 1st and 2nd mortgage on. My 1st mortgage has 3 late pays from May, Jun, & Jul 2012. Aside from that I have had no other mis-steps with my credit. I have been living on cash and hadn't applied for any credit until this year (Which is why I said I wish I'd read this site sooner). In Jan 2014 I applied for an auto lease with Lexus (Toyota Motor Corp) Financial and am leasing a car. Last week I applied for a Captial 1 Classic Platinum card (the one recommended for people with 'average' credit) and was approved for $3,000 CL. I also responded to a preapproved offer from Credit One and was send a Visa with a $400 CL. I HAVE NOT activated this card yet. So bascially I have 2 mortgages, 1 car loan, and will have 1 credit card, possibly 2 if I go ahead and activate the Credit One card. 

 

Here are my questions:

1.) My 1st and 2nd Mortgages were with One West Bank but were sold to Ocwen and Specialized Loan Servicing in October 2013. Since then, I do not see them being reported to any of the credit agencies. What can I do to get them to report the open accounts?

 

2.) Since I was approved with Capital 1 with such a good starting CL ($3,000), should I go ahead and activate the Credit One card as well just so that I will have an another credit card on my CR? Or should I apply for a different card or type of credit that may have more favorable terms since I am not quite at the begining stages of the BK afterlife? I currently have a total of 6 inquiries on my CR. 1. I don't want to create too many more inquiries which is why I am tempted to just go with Cred1 card even though the terms and rate sucks.

 

3.) When I filed for BK I included a credit line that I had with my CU and as a result they closed the credit line and bank accounts. Do you think I'd have any chance at opening an account with them at this point? If not, should I aim for a different CU so I can begin to take advantage of CU benefits? Back in 2011 or 2012 I tried to open a checking account with Wells Fargo and was denied due to my BK so I have been apprehensive in trying to get any additional bank accounts since then.

 

4.) 10 years after which date does the BK fall off of your credit? The Filing Date or the Discharge Date?

 

Any and all advice will be appreciated. Thank you for your time

 

New Member
ChuckNorrisofFICO
Posts: 3
Registered: ‎10-31-2013

Re: How to rebuild your score after a ch7 BK

Awesome Awesome Awesome Plan!! Thank you so much to you and all that have provided information on this site as a resource to those that needed it most following my CH7 discharge last Oct. I followed this plan as I could and it has done wonders for me. Was recently approved for the Barclays Apple at 1700 and added the Walmart store card (Reconed in Search of the discover card which was burned in the BK- had some positive feedback from them - garden and use card for six months kid and we will increase your cl and then roll into discover card) and had Cap1 increase my card from 500 to 2300!   I also utilized an AutoLoan through Cap1 as my credit rebuilder and have made faithful payments for the past 6 months as well as with carrying the 9.25 interest rate. Will be opening discussions with my local CU this month to do a refi and lower the interest rate.  

 

The hardest part for me is stepping back into the garden after stepping out but I feel like the research I have done on this site has helped me vastly with this. The benefits at this stage of the game are CRITICAL to future success and the addition of increased credit opportunities. 

 

My DW is also at the beginning stages and should be discharging her own CH7 within the next 40 days- We plan on following this advice to the T with the exception of the CBL. She has Student Loans which will come back into play as soon as the discharge is clear to take its place. 

 

This week I set up 75% of my bills to Auto cycle through my Cap1 and Barclays card and Walmart (groceries) with the intention of PIF each month as the statement cuts with rotating small % balance on each for reporting purposes. I want to do this to increase the activity on these cards in an effort to enhance my relationship with each company in hopes of further developing this relationship in the forms of CLI's and new opportunities for other lines (Arrival, Discover Walmart, and Quicksilver).  As long as I am keeping these balances down and PIF each month, stay in the garden and I should be fine right?  

Starting Score: PRE-BK EQ 490 Discharged 10/15/13
Current Score: EQ 633 EX 662 TU 622 (via MyFICO)
Goal Score: 700 ALL
Cap1 Auto 24k (11/13); Cap1 Plat-QS1 2300 (11/13); Credit one 600 (11/13); Barclays Apple 1700 (5/14); Walmart 400 (5/14); Amazon 700 (5/14); Credit Care 1000 (6/14)

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