@Anonymous wrote:
Hello All,
I'm looking for some guidance as I am trying to follow this plan but there are a couple of issues that may dictate a slightly different path. I was discharged from CH7 in late April.
1. Some of the debt that I had was some student loans in which some were defaulted. 3 of the 4 student loans I have consolidated and while the first payment isn't due yet, the new consolidation loan is showing current and paid as agreed. 1 of the 4 (which I attempted to consolidate as well) sent their's directly to another collection agency post BK. I was well aware and never expected that these would be included in BK which is why I consolidated immediately after being discharged. It was a smaller balance ~$700 that I have made arrangements with the agency to pay. The other 3 after consolidation show a balance of ~$12K and again, show current. My question related to this is being that this is a loan on my credit, should I follow step 2 with the credit builder loan? I'm afraid that due to the 2 loans already listed, it would be extremely hard to get approved. Also, am I serving the same purpose if I can get the collection account resolved and continue to pay the consolidation loan as agreed.?
2. According to step 1 in rebuilding, I applied for a Credit One card in mid May but was declined. This again may have been because of the student loans. Just a couple of weeks ago, I received a prequalifier for a Capital One Platinum Mastercard (unsecure). I reluctantly applied and was approved. Not secured, no AF. According to the steps, I should have applied for Cap One 2nd about 5 months into the rebuild. Being that it didn't play out that way, should I just roll with the Cap One card as is and get the CLI while using little utilization until step 7 or apply for a different card as a 2nd card inplace of the Cap One option?
ALguy,
Welcome!
With regards to your student loans, I would do everything possible to get that $700 loan paid to zero. It will will help your CR showing that you have a paid in full account. On your consolidation loan, check your payment history monthly. Make sure that your monthly payment is covering all the interest and some of it bringing the principal down. I would not worry about getting a secured loan. The purpose is to create another positive trade with prefect payment history on your CR. You're going to be able to that with your student loan.
Since you were lucky to get a Capital One unsecured card, you're really in better shape that you think. Just remember to let the statement cut with the balance reporting no more than 10% and remember to pay in full. I would also sign up and use the CapitalOne Credit wise. I like it a lot. Once you get that $700 loan paid off and you get your scores near 650, you can apply for a Barclays card or Discover. If you get a preapproval for a decent sub-prime card like Merrimack Bank, then I would consider that only. Just give it time.
Now that you are in a decent place and need time to create a paerfect payment history, I would join a credit union that is bankruptcy friend and create an emergency fund that will prevent you from ever repeating what cause your bankruptcy.
Best of luck in your rebuild.
Guyatthebeach
