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

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DaveInAZ
Senior Contributor

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

"the creditor then sold the acct to a collection agency...I started receiving letters again...giving me 10 days to pay or else. 😅 

 

my case is being reopened.💰"

 

- You shouldn't have to reopen your BK case just for that - make a copy of your discharge of that debt, mail it to them, and tell them if they contact you ONE more time trying to collect that discharged debt you will take legal action.

 

If you feel you absolutely need to reopen your case, the debtor can reopen his case with no fees. It's called Rule 4007, Determination of Dischargability of a Debt.

 

On that 36% card utilization - anyway you can make a payment before the statement lowering the balance under 30%? I went to 40% on one card w/low limit, I changed the 10/17 scheduled payment in full of previous balace of $283 to a $400 payment, getting the next statement balance under 30%.

Message 761 of 1,877
Chilli
Established Contributor

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

@daveinaz, my bankruptcy attorney had sent several letters to the orig. creditor, and 1 letter and phone calls to the collector but they refused to stop for some reason. The lawyer said there's no other choice because they gave me 10 days to pay before they take further action.

Message 762 of 1,877
Scupra
Super Contributor

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

Meh, no worries! Your score has no memory and will bounce right back. At the same time, on a manual review it will show that you can use and PIF Smiley Happy you shouldn't lose any points when the loan closes as it will stay on your reports for 10 years.
Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
801 EQ FICO 06/2022
797 TU FICO 04/2022
793 EX FICO 04/2022
$30k NFCU Platinum | $30.7k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE | AMEX Gold | NFCU Platinum #2 $19.3k | Apple $8.5k
Message 763 of 1,877
Anonymous
Not applicable

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

My BK7 was discharged in August and I am working on rebuilding my credit per this guide.

 

I live in Texas and opened an account with RBFCU which I plan to use them in place of OneNevada.  I have also reopened my NFCU account.

 

I pulled my 3 reports and disputed/verified everything per section 1.

 

In starting section 2, CreditOne came back with a secured card with a lot of fees. Instead of that I am considering NFCU's nRewards secured card: https://www.navyfederal.org/products-services/cards/creditcards/nrewards-secured.php  It has no Annual Fee, a minimum of $500, reports as unsecured (per http://www.beverlyharzog.com/the-best-and-worst-secured-credit-cards/), and can convert to unsecured with a $1000 minimum after 13 months of good payments (per NFCU).

 

As soon as I get that, I plan to open a secured loan as you suggest.  RBFCU offers a minimum $300 share secured loan with a minimum 6 month term.  NFCU offers a similar share secured loan with a $250 minimum and 12 month term.  Both are 2% over my share rate with no fees.

 

My first couple questions, would you recommend keeping everything with NFCU, a card with NFCU and loan with RBFCU, or opening two smaller loans with both CUs?  Also why $1000? Is that the minimum NevadaOne offers or is there another reason for that number?

 

When I am ready to move on to CapitalOne QuickSilverOne, does it matter that I burned Cap One?  Do they hold a grudge?

 

I have never had Discover or Barclays cards, should I move either of them up to replace Cap One?

 

My goals are to get to 3-4 good (no annual fee + cash rewards) cards and pay them off in full each month, build at least one of them up to a reasonable limit, get a decent rate on a car next year, and start saving towards a house in 2-3 years.

 

Thanks for your patience and help.

Message 764 of 1,877
Scupra
Super Contributor

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


@Anonymous wrote:

My BK7 was discharged in August and I am working on rebuilding my credit per this guide.

 

I live in Texas and opened an account with RBFCU which I plan to use them in place of OneNevada.  I have also reopened my NFCU account.

 

I pulled my 3 reports and disputed/verified everything per section 1.

 

In starting section 2, CreditOne came back with a secured card with a lot of fees. Instead of that I am considering NFCU's nRewards secured card: https://www.navyfederal.org/products-services/cards/creditcards/nrewards-secured.php  It has no Annual Fee, a minimum of $500, reports as unsecured (per http://www.beverlyharzog.com/the-best-and-worst-secured-credit-cards/), and can convert to unsecured with a $1000 minimum after 13 months of good payments (per NFCU).

 

As soon as I get that, I plan to open a secured loan as you suggest.  RBFCU offers a minimum $300 share secured loan with a minimum 6 month term.  NFCU offers a similar share secured loan with a $250 minimum and 12 month term.  Both are 2% over my share rate with no fees.

 

My first couple questions, would you recommend keeping everything with NFCU, a card with NFCU and loan with RBFCU, or opening two smaller loans with both CUs?  Also why $1000? Is that the minimum NevadaOne offers or is there another reason for that number?

 

When I am ready to move on to CapitalOne QuickSilverOne, does it matter that I burned Cap One?  Do they hold a grudge?

 

I have never had Discover or Barclays cards, should I move either of them up to replace Cap One?

 

My goals are to get to 3-4 good (no annual fee + cash rewards) cards and pay them off in full each month, build at least one of them up to a reasonable limit, get a decent rate on a car next year, and start saving towards a house in 2-3 years.

 

Thanks for your patience and help.


First off, welcome to the forums and congrats on your discharge! RBFCU and NFCU are both great credit unions to have from the start. I started off with the secured NFCU nRewards and a Capital One card with my rebuild. The NFCU secured card is great and I have nothing bad to say about it at all. Make sure to apply for the unsecured nRewards card as NFCU will counter with the secured version if not approved Smiley Happy There is no need to have 2 different installment accounts, one will provide you with the credit mixture needed to optimnize your FICO score. I am not sure if there is a reason for the $1,000 amount other than it being enough to spread over a year.

 

Capital One is very forgiving after including them. Especially if you have some history for them to review when you apply. Some here have not had luck after burning them, but I think it would be ok to say most have had sucess.

 

Barclay would be a great option after you have around 6-12 months of revolving history for them to look at. They love seeing a revolving TL prior to them giving you a chance and there isn't much of a way around it. I would not apply for Discover any earlier than 1 year post d/c, I waited 22 months and was still declined. They are picky lender and just simply odd.. Good luck!

Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
801 EQ FICO 06/2022
797 TU FICO 04/2022
793 EX FICO 04/2022
$30k NFCU Platinum | $30.7k NFCU cashRewards Sig | $15k NavChek | $7.1k Cap1 Quicksilver | $10k Amazon Store | $19k Cap1 VentureOne | $16k Barclay Aviator | $5k Chase Freedom | $5k Chase Sapphire Preferred | $9k Costco Visa | $20k AMEX BCE | AMEX Gold | NFCU Platinum #2 $19.3k | Apple $8.5k
Message 765 of 1,877
Anonymous
Not applicable

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

I was 611 before my discharge earlier this month, and it finally got discharged a couple days ago and went up to 633. (Before all of this happened, I was an 800 score for years so I think that helped) I got my Credit One card last week for $400. Applied for a Capital One today and got a $3,000 unsecured card. So I am guessing that this guide is still good, but just timing can vary depending on post BK scores.

 

If I need to charge something that is $1,000 just pay off under 10% ($300) before the statement cuts?

Message 766 of 1,877
Larryhay
Established Member

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


@Anonymous wrote:

I was 611 before my discharge earlier this month, and it finally got discharged a couple days ago and went up to 633. (Before all of this happened, I was an 800 score for years so I think that helped) I got my Credit One card last week for $400. Applied for a Capital One today and got a $3,000 unsecured card. So I am guessing that this guide is still good, but just timing can vary depending on post BK scores.

 

If I need to charge something that is $1,000 just pay off under 10% ($300) before the statement cuts?


Yes, for Capital One and MOST all other creditors, the balance on the statement cut (assume the due date for preperation purposes) is what triggers your Utilization figure

 

For a $3,000 limit card=

<$300 = <10%

max points <10%, although <20% = $600 reporting balance is very strong as well.

Goal should be <30%, in this case <$900

 

 

The overall (all revolving limit combined VS all revolving Balances) is the major component, however you can still be 10% overall, but if you have a single card over 60%, you will still lose some points.

 

The great news about utilization versus a negative entry like a late payment is, virtually the next month's statements after utilization is back in line, all is forgiven and most all points recaptured.

 

You miss a payment, and you're going to pay a price for years.


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

Take the FICO Fitness Challenge



7/13/2013 Fico EQ 674 TU Fico 652
Message 767 of 1,877
0REDSOX7
Valued Contributor

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

Focus on building a robust credit profile instead of driving yourself crazy over what to pay what when.

If you let your statement cut with 60% utilization, don't worry about it. It will impact your score a bit, but if you're not apply for credit that month, it doesn't matter.

Get the credit profile - which looks like you are on your way - and the score will follow.
BK Discharge 2/11/14

Currently in the garden.
Message 768 of 1,877
Anonymous
Not applicable

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

Hello everyone,

 

Well same as you all, i am trying to get my credit score like i used to have it in the 700s before BK7. I received my discharged on 06/23/2014. I was told by several friends to wait at least a year to apply for a credit card. But i couldn't wait that long to be honest.... In my BK i included BOA, Chase, Citi (home depot and sears/MC), Syncb (sam's and walmart). I created a profile in credit karma and it showed me a credit score of 701, I was WHAT!!!!! really..... so the i applied for a wells fargo credit card but was offered a secured account instead (I didn't take it), so credit karma suggested to apply for a capital one venture and quicksilver so i did. I was approved fro $3000.00 on one and $2000.00 on the other. I was happy to be approved with those high credit limits.....

 

But let's talk credit scores. I received a letter from capital stating the terms and they were nice enough to give me my credit score of 612 from EQ, i was shock of how low it was..... so since i read that credit karma's info is not accurate and decided to follow the instructions here and enrolled in myFico using one of my new credit cards. They show my credit score as follows : EQ 585; TU 529; EX 568. I am so but so sad about those numbers. Since i am so anxious to get my credit back i applied for barclayscard online but they said that my applications needs further review and will let me know later of their decision.

 

So now i have 4 hard inquiries.....

 

can someone please tell me what to do next.......

 

Another question i have as far as my credit report is that some accounts show "closed-derogatory", i applied for BK feb/2014 reported to creditors and others have closed that accounts on 3/2014 but showed me 60, 90 days after that date..... what can i do about it????

 

can someone help me please........

 

thank you

 

Message 769 of 1,877
QFJFKSYD
Valued Member

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


@Anonymous wrote:

Hello everyone,

 

Well same as you all, i am trying to get my credit score like i used to have it in the 700s before BK7. I received my discharged on 06/23/2014. I was told by several friends to wait at least a year to apply for a credit card. But i couldn't wait that long to be honest.... In my BK i included BOA, Chase, Citi (home depot and sears/MC), Syncb (sam's and walmart). I created a profile in credit karma and it showed me a credit score of 701, I was WHAT!!!!! really..... so the i applied for a wells fargo credit card but was offered a secured account instead (I didn't take it), so credit karma suggested to apply for a capital one venture and quicksilver so i did. I was approved fro $3000.00 on one and $2000.00 on the other. I was happy to be approved with those high credit limits.....

 

But let's talk credit scores. I received a letter from capital stating the terms and they were nice enough to give me my credit score of 612 from EQ, i was shock of how low it was..... so since i read that credit karma's info is not accurate and decided to follow the instructions here and enrolled in myFico using one of my new credit cards. They show my credit score as follows : EQ 585; TU 529; EX 568. I am so but so sad about those numbers. Since i am so anxious to get my credit back i applied for barclayscard online but they said that my applications needs further review and will let me know later of their decision.

 

So now i have 4 hard inquiries.....

 

can someone please tell me what to do next.......

 

Another question i have as far as my credit report is that some accounts show "closed-derogatory", i applied for BK feb/2014 reported to creditors and others have closed that accounts on 3/2014 but showed me 60, 90 days after that date..... what can i do about it????

 

can someone help me please........

 

thank you

 


Welcome.  You're in the right thread.

Most everything you need to do is explained in the first post with several questions answered throughout the whole thread.  Give the full thing a read.

That said, don't apply for any more credit cards.  You did extremely well getting two from cap1 with such high credit limits.  Let them get older now.  Use them just enough to make them report, pay one off before it cuts a statement and make sure the other cuts to statement with only 10% or less of available credit showing.  Then pay it off in full before due date.   PiF every month is huge.  Too easy to slip back into old patterns if you don't and it will slow your rebuild.

 

Get your three credit reports as stated in the first post.  Get to work on cleaning them up.  Make sure they're reporting correctly, everything is IIB and zero balance due, etc.

 

You can apply for Barclays after 6 months on the cap1, although whether you need to or not is up for discussion since you already have two cards reporting as you need.

 

The key here right now is to stop applying for more credit cards and clean up your credit reports.  Follow the advise in the first post the best you can.  If you have access to a credit union, get a rebuilder loan (sometimes called savings share secured personal loan).

 

Remember.  This is a multi year process.  But it can be done and done well.  

Message 770 of 1,877
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