Is there life after bk 13- absolutely....happy story

[linzey]

After 5 long years, we were dischardged on Thursday. Applied for a Prosper loan ($2500) on Sunday. It was approved and should be deposited in my account in 2 days. Int rate was 9.4%, but being credit score obsessed, know that it is a good tradeline. Well, that got the ball rolling and just for kicks wnet car shopping. Today, we bought a 2015 Honda Oddysey for $28,000 at an unbelievable rate of 3.9%. I am completely over the moon.  Now we wait out the 2 years until it falls off our reports. My eq score was 711 at dealer. I know it will take an initial drop, but am well onto 750 scores!

It was a tough 5 years, didn't think my current car would even last through it, but it paid off. For those of you who need encouragement, this is it. Life is great and I learned so much about becoming financially aware.  My plan is to put $ from loan in the bank at pay it off at 18 months. There will be some awesome tradelines on my credit report in a short time.

[Anonymous]

Congrats! You came out of BK with a decent score!

[TRC_WA]

An installment personal loan and an installment car loan won't help your credit as much as you think.

I've taken on 2 new car loans in the last 2+ years since discharge... while paying off the old loan. 

I saw 0 FICO score change with the addition/payoff of the loans to my credit reports... due to the fact I already have installment Sallie Mae student loans.

You only need 1 installment loan to help your credit mix and give you a point boost... after that installment loans have virtually no affect on  your score... unless you default.

The #1 way to improve your credit score is revolving credit cards.

Grats on the discharge.  Looks like you are well on your way... just don't expect 750 scores until AFTER the 7 years from filing is up and the derogs fall off your reports.  It's not going to happen.  The public record and IIB accounts will keep you in the upper 600's/low 700's for as long as they on are your reports.

Not trying to rain on your parade... just giving you the facts based on someone who has been there.  I'm 6+ years since my Ch 13 with a few more months till everything falls off.  I've done just about as perfect a rebuild as you can do and I'm in the 670's-680's... because I still have the public record and IIB accounts weighing down my scores.

[Anonymous]

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@linzey wrote:

After 5 long years, we were dischardged on Thursday. Applied for a Prosper loan ($2500) on Sunday. It was approved and should be deposited in my account in 2 days. Int rate was 9.4%, but being credit score obsessed, know that it is a good tradeline. Well, that got the ball rolling and just for kicks wnet car shopping. Today, we bought a 2015 Honda Oddysey for $28,000 at an unbelievable rate of 3.9%. I am completely over the moon.  Now we wait out the 2 years until it falls off our reports. My eq score was 711 at dealer. I know it will take an initial drop, but am well onto 750 scores!

It was a tough 5 years, didn't think my current car would even last through it, but it paid off. For those of you who need encouragement, this is it. Life is great and I learned so much about becoming financially aware.  My plan is to put $ from loan in the bank at pay it off at 18 months. There will be some awesome tradelines on my credit report in a short time.

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As a seven year survivor of Chapter 13, I can honestly say life really is great! Congratulations on new beginnings!

[linzey]

Thank you. I apped for a venture capital card today and got a 5000 limit. So excited that i got my hisband one also for same amount. I am going to bury myself in the garden. I did open a rooms to go last year so that has been reprting positively for 12 months. We went to 3 dealerships and my credit report was pulled about 13 times. So i am going to let those fall off. Definitely felt a little better today, especially when i picked up my new car tonight.

[linzey]

When you say revolving...do you mean store and credit cards?

[TRC_WA]

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@linzey wrote:
When you say revolving...do you mean store and credit cards?

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Yes.

Installment loans (car loan, personal loan, mortgage, student loan) have little to no affect on your credit after the 1st account (unless you default)... as I said in my original reply.

Revolving credit cards (MC/VISA... Target store card... etc) are how you improve your credit score.

I just don't want you to see you get your hopes up over a car loan and a personal loan giving you a big score boost because quite honestly I wouldn't be surprised if you didn't get any points at all... because they are installment loans.

[Anonymous]

I paid my last 13 payment this week. Since I have a mortgage and secured card then it sounds like my best bet is to apply for either a store card or unsecured card? Is there a "magic number" for # of cards or balance amount that I should target? Is there any store card that is better than others?

[TRC_WA]

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@Anonymous wrote:
I paid my last 13 payment this week. Since I have a mortgage and secured card then it sounds like my best bet is to apply for either a store card or unsecured card? Is there a "magic number" for # of cards or balance amount that I should target? Is there any store card that is better than others?

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3 revolving cards is what you need... more than that isn't necessary for optimum FICO scoring.

The cards you choose are up to you.

[linzey]

I just got a capital one for 5k, discover 1k. I have paypal credit 2k, rooms to go 3.5 k, open sky secured 200.00, USAA secured 250.00, walmart 500., and lowes 500. No real balance on any. Mortgage and auto were not reaffirmed (sorry i didnt). Auto has 1 payment left, then new auto payment will kick in. Thinking this is a very diverse mix.