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Rebuilding

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Anonymous
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Rebuilding

Hi all, I've been lurking on the forums for a while now, gathering good information and knowledge. I filed chapter 7 in May due to medical bills (no insurance) I was making payments on the medical bills however the attorney decided that he would garnish my wages along with my payments so I had no other choice but to file bankruptcy. I had no other debt except a car loan that I was upside down (current, never late)on and student loans that were current and never late. I stayed away from credit cards and used cash to make all of my purchases.
I have also started my rebuilding as well, here's a little background on it

5/15 Filed chapter 7, did not reaffirm car loan and was able to get an 18k loan the same day @17%. Plan to refinance at the year mark

9/15 discharged, approved for cap one QS1 and Platinum $300, recent LUV button increase to $800 both, credit steps will kick in sometime in March, SCT Express $250
10/15 Credit One $300, auto increase to $450, plan to cancel before the year mark
11/15 Capital One Sony Card $500, NFCU nrewards
12/15 Kay's $400
And today I was just approved for Barclay's Apple Card $1,500

Fico 8 scores are all in the 600's across the board with TU sitting at 659, EX 636, and EQ 606. I plan on gardening until I refinance my car at a lower rate. Just want to say thanks to this forum for all of the knowledge it has provided me.

Message 1 of 5
4 REPLIES 4
Anonymous
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Re: Rebuilding

Congratulations! So happy for you!  You look to be well on your way rebuilding!

 

Who is your auto loan through?  At 17%, I wouldn't wait to try and refinance it if you can get it done.  Given Cap1 has approved you for a couple of cards and you've shown positive payment history, I would check on their website and see if they can refinance you.  The sooner you can get out from uner the 17%, the better.  The longer you have that rate, the longer it is taking to build equity in the car.  Just a thought - I waited a year to refinance mine from 7.59% to 3.99% with Cap1 - I wish I had known about this forum much, much sooner!

Message 2 of 5
Anonymous
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Re: Rebuilding

Thank you so much! Its nice to have no debt aside from student loans and to have credit so soon after bk. I thought for sure i would never be approved for anything!
But my loan is through tidewater, cap one will refinance me at 14% but for a shorter loan, which increases my payments. I can handle the increased amount though if need be. At the advice of my attorney i got the car loan, when i should have just waited until my discharge, as i may have gotten a slightly better rate than i did but who knows. I needed a car for work so i was in a bind. I may consider that route with cap one though. NFCU said they wouldn't finance me just yet because of bankruptcy, so it's a no go for now with them. Yes I wish I would've known about this forum before I filed, however I'm grateful I found it when I did.
Message 3 of 5
Anonymous
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Re: Rebuilding

Congrats on your start! Time is the key. I know the Auto Loan is high, but get a year past discharge and you should be able to get a better rate that makes sense. Keep up the good work!

Message 4 of 5
Anonymous
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Re: Rebuilding

Thanks Cruz! Yea my plan was to wait a year and try to refinance then. By then NFCU may be willing to. It's funny though because my car payment now is only 60$ more than my old car payment but the car is 8 years newer. I got shafted with the previous car because I had limited credit history and some baddies. But my goal is to stay on track and only build my credit from here on out so by the time my military contract us up, I will be able to get a VA loan at a great rate.
Message 5 of 5
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