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Valued Member
Posts: 41
Registered: ‎12-07-2010
0

Rebuilding after bankruptcy---how long---what to do?

Hello,

 

I've been lurking trying to gather some information - but I wanted to present my scenario and get some outright advice.

 

My husband and I filed Chapter 7 in 10/10 due to poor choices made when we were younger, my husband losing his job, and a host of other lifetime events.  We had our 341 meeting 11/10.  We have not received the official discharge yet.

 

We lost two car (financed through Chase Auto Finance and AmeriCredit).

 

We kept our mortgage (which is in my name only) that's been open since 07/2008.

 

We had credit cards that we hadn't been able to pay in years (charged-off) that were included in the bankruptcy (including capitalone, orchard, first premier, macys, jcpenney, walmart, merrick, creditone, hsbc, etc.) as well as miscellaneous medical bills, and utility bills.

 

I am not sure what our FICO scores would be, although I would not be surprised if they were 300!  I intend to pull them in a few months (after the discharge posts)

 

I have about $20,000 in student loans, which were late in the past - but I have been current on in recent months.

 

I am determined to be financially responsible, and show it with my FICO score but I am afraid I burned all my bridges with the very  lenders that normally help build credit after bankruptcy.  After some researching - I am thinking about applying for  BOA and Citi secured cards.   So I guess my questions are as follows...

 

Do BOA and Citi tend to approve secured lines post BK?  How long should I wait before applying?

 What other steps can I take to improve my credit score?

How long of doing the low debt to limit ratio, on time monthly payments, and keeping the different types of credit open will my credit score start to rise?

If I maintain on time monthly payments faithfully with the mortgage, student loans and two secured credit cards, how many points should my credit score go up in 1 year and 5 years?

 

Will I ever be able to have a credit score over 720?  Even if it takes 5 years?  Thanks for listening, and all your help in advance.

 

Chrissy


Starting Score: TU 500, EQ 577, Vantage EX 626
Current Score: TU 500, EQ 587, Vantage EX 626
Goal Score: 700


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Valued Member
Posts: 46
Registered: ‎09-15-2010
0

Re: Rebuilding after bankruptcy---how long---what to do?

I obtain my first cc post bk 7mos after discharge. I waited this long bcz of the$ $ reqrd for the sec deposit. Went to my local cu and issued a MC with a $500 limit.they did have have to pull credit but tick didn't matter since it was only to prove identity. 3mos after this I received a preapproval from first premier with $700 limit n just recently my wife got approved for the best buy mc rewards n added me as an authd user so now it reports under my score. At time of filing scores where in the low 500s..3 credit lines & 14mos after discharge scores are EQ 636 TU 653 EX 640 fall. Check ur local cu and if there is no objection from them pull the trigger on a secured card.don't charge more than 20% of limit n try to pay in full every month. Good luck to u
Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Rebuilding credit - after 10 years of poor choices

Hi and welcome to the forums.

 

To answer your question if your scores can increase the answer is yes. Can they obtain a FICO score of 720 yes they can and even higher with time. 

 

Do not frown upon no quick response as your situation is not a quick fix and takes a little time for others to gather the information you put together and offer some assistance. 

 

 

 

Good Luck
May all your dreams and wishes become a reality!
Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
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Re: Rebuilding credit - after 10 years of poor choices

[ Edited ]

One thing that I would suggest is investigating local credit unions (as opposed to the big national ones.) Find out if they offer secured cards; ask if they will work with someone in your situation. Ask if they report to all three CRA's (credit bureaus.)

 

CU's are often great for those trying to build or rebuild. They're not for-profit; they are individuals who invest in each other by pooling funds and extending credit. You can often find a loan officer who is willing to look at your individual situation.

 

If you're bound and determined to try to get a card from one of the Big Boy banks, there's a thread stickied on the Credit Cards forum under the Helpful Threads thread (OK, that sounds weird) of BK-friendly banks. The thread has been going since July of 2007, so needless to say, the info towards the end is apt to be more reliable than that at the very beginning.

 

 

by the way, I've sent you a pm (private message.) Look above on the left, and you'll see a glowing gold (orange?) envelope. Click on the envelope to get to the pm.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
New Contributor
Posts: 58
Registered: ‎11-04-2010
0

Re: Rebuilding credit - after 10 years of poor choices

Hi! and WELCOME to the Family  Smiley Happy

 

    I am also pretty new to myfico but what I have learned is that you are in good hands now.  Like many others on this forum, my credit needs a little repairing as well.  I decided to apply for a secured credit card as mentioned by another member.  The one I applied for is through Public Savings Bank.  I personally decided to use this one because they do not check your credit.  Although the CC (Credit Card) does not secure over time, this might be a good place to start.  The card offers: Guarenteed approval, Reports to all 3 Bureaus as well as 0% APR for the first 6 months;  Try to google the name of the bank and all of the information will come up.  I hope this helps and GOOD LUCK on your credit journey  Smiley Happy


Starting Score: 550
Current Score: 570
Goal Score: 750


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Valued Member
Posts: 41
Registered: ‎12-07-2010
0

Re: Rebuilding credit - after 10 years of poor choices

Hello thanks for replying- I am not deterred in the least by a slow response!  I am looking for slow and steady wins the race. 

I am looking for clear, measureable goals.  My goal is to be financially responsible.  I would like to take the correct steps to do that.  I would like my FICO score to reflect it as well Smiley Happy


Starting Score: TU 500, EQ 577, Vantage EX 626
Current Score: TU 500, EQ 587, Vantage EX 626
Goal Score: 700


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Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
0

Re: Rebuilding after bankruptcy---how long---what to do?

[ Edited ]

I was discharged in November last year, my score progress is in my signature, and I just hit EQ 660.  You may want to pull a score now for a baseline but it's not necessary.

 

I have some baddies from when I stopped paying some accounts ba few months before filing.  Opened a mix of secured and unsecured accounts, and got an auto loan, I'm working to drive total utilization to below 10%, with at least half my cards at zero balance.

 

I would agree with the suggestion to look for a Credit Union, you can get two positive tradelines for one inquiry and one deposit with a cooperative CU by putting in the deposit and using that to secure an installment loan.  Then use the loan proceeds to secure a credit card.  That gives you one major CC and one installment TL to help with account mix for your score.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Valued Member
Posts: 41
Registered: ‎12-07-2010
0

Re: Rebuilding after bankruptcy---how long---what to do?

That's great you raised your score almost 100 points in a year!  That makes me hopeful.

 

I am reaffirming my mortgage

I am current on my student loans and hoping to start paying them down with more-than-minimum payments (approx $20,000 worth)

I am going to apply for the secured loans/card from the bank like you suggested.

Most of my "baddies" are scheduled to fall off in 2015.

 

I'm hoping to be up around 700 by 2015 - do you think this is possible or am I reaching too high.  I'm assuming my baseline score is like 400.


Starting Score: TU 500, EQ 577, Vantage EX 626
Current Score: TU 500, EQ 587, Vantage EX 626
Goal Score: 700


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Valued Contributor
Posts: 1,063
Registered: ‎05-26-2010
0

Re: Rebuilding after bankruptcy---how long---what to do?

I've seen people here say they got to 700 within a year or two.  A lot depends on what baddies you have reporting from before filing, and how successful you may be in working some of them off, or having them fall off at 7 years plus 180 days from DOFD. In 2015 anything that went delinquent around 2008 will fall off.  IMHO the two most important things to do are to get some positive lines reporting (1 installment and 2 CC), and be absolutely perfect in paying on everything.  Any lates after a BK are a giant red flag, even if they don't crater your score they will lead to most lenders denying you credit.

 

Also, I can tell you Citibank returned my deposit for a secured card because i discharged debt with them.  So did Orchard / HSBC.  My secured accounts are with NFCU and USAA.  Another reason to go the CU route.

 

 

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Valued Member
Posts: 41
Registered: ‎12-07-2010
0

Re: Rebuilding after bankruptcy---how long---what to do?

Thanks for answering...

 

I do belong to a CU - I'm not eligible for NFCU... and I'm not sure what the USAA is... I will keep looking around.


Starting Score: TU 500, EQ 577, Vantage EX 626
Current Score: TU 500, EQ 587, Vantage EX 626
Goal Score: 700


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