How to rebuild after being turned down for everything...

[Anonymous]

Hi,

I filed for bankruptcy earlier this year. It was officially discharged in June (2014). My husband and I filed together, and we have been having vastly different experiences in trying to repair our credit.

We filed under very unique circumstances. We never missed a payment on any of our credit cards, nor did we have any outstanding collections. We both graduated from college a few years ago with significant student loan debt. Right after college, even though my husband originally got an adequate job, I ended up giving birth to twins, one of whom needed significant medical care for the first year of her life. Her medical costs completely ate up our savings we had, and we turned to our credit cards to support ourselves during this time. After a year of almost 15k *a month* in medical bills, we found ourself at the end of it with 45k in student loans, and four credit cards maxed out at a grand total of 75k. We made the hard decision after spending a year paying down a bit more than the minimums on everything, and getting nowhere, to file for bankruptcy. In our minimum payments alone we had to pay half of my husband's month salary. At this rate, we would have only seen the light of day by the end of 2023..

I know that the most important thing is that I must have patience during this process, but I'm having a hard time trying to do my best to get myself back on track.  After filing, my husband was approved for two separate Capital One cards; with a total limit for both at 5k.

For myself, I have been turned down for everything under the sun. I claimed Capital One as one of my debtors, and at the time had no idea they basically dominate the market on cards for less than stellar credit. Capital One has turned me down, unsurprisingly.  I have also been turned down for *secure* credit cards through my local credit union, WellsFargo, Bank of America...  None of which I listed on my filing.

I appear to be blacklisted from everything I apply for. It is a bit surprising, since my husband has had no trouble at all obtaining credit... My credit report looks to be accurate to the best of my knowledge.

I am hoping someone can give me some advice on how I should go about repairing. Has anyone had any luck obtaining a share secured line of credit through a credit union? Lack of income is not a problem for us right now. I can easily afford to pay for a secured loan, but at the rate I'm being turned down for even secured credit cards, I just don't know if I should keep waisting my time with all the credit inquiries..

Thank you!

Bankruptcy Discharge 6/2/14

Credit score as of 8/24/14:  638

[04Cobra]

Hi! Welcome to the forums. First thing I would do is to order reports from the 3 credit bureaus. Make sure all accounts show up as included in bankruptcy (IIB) with a $0 balance. If not, dispute it immediately. Secondly, look at opening a Victoria's Secret card, dunno if you shop there, and maybe a Credit One card. These cards tend to be BK friendly.

Lastly, read this link: http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

An awesome resource to help you get back on track. Good luck 

[ezdriver]

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@04Cobra wrote:

Hi! Welcome to the forums. First thing I would do is to order reports from the 3 credit bureaus. Make sure all accounts show up as included in bankruptcy (IIB) with a $0 balance. If not, dispute it immediately. Secondly, look at opening a Victoria's Secret card, dunno if you shop there, and maybe a Credit One card. These cards tend to be BK friendly.

Lastly, read this link: http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

An awesome resource to help you get back on track. Good luck 

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I would add Frist Progress card to the list ... it is a secured card but you can get two with one online application and your current credit status is irrelevant. I got two [$300 each] to start my rebuilding efforts. They have served me well and now I am cancelling them since I have a sufficient number of unsecured credit cards to continue building my credit profile. Do as suggest above and then do as I recommend. Stay away from the big banks and credit card issuers until you have 12 months worth of positive reporting on at least two tradelines.

[0REDSOX7]

Have you tried Credit One? You can do pre approval online and see if you would be approved without a hit to your score.

[Anonymous]

My wife was ibn the same boat as you. I am reparing my credit after bk7 as well, got discharged at the beginnging of july, got a capone secured card, and just recently got approved for a unsecrued card through capone. Was talkign to my credit cousnlor from veterans untied lighthhouse prgram, and she instructed me to add my wife as a authorized user on both of my accounts. She gained the credit history i have and within a week she got apporved for a capone unsecrued card. Her credit is worse than mine, but when she picked up my credit history she got approved for a unsecrued card. Hope this helps. 

[Taoron]

Be careful with secured cards.  I read that once you have one, it'll be a lot harder to get an unsecured card. 

I recommend checking out this link, it has helped me a lot so far:  http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

[ezdriver]

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@Taoron wrote:

Be careful with secured cards.  I read that once you have one, it'll be a lot harder to get an unsecured card. 

I recommend checking out this link, it has helped me a lot so far:  http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td-...

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That is nonsense. Be careful with what you read.

[TRC_WA]

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@Taoron wrote:

Be careful with secured cards.  I read that once you have one, it'll be a lot harder to get an unsecured card. 

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Didn't have to go that route... But then again I filed Ch 13.