When Bankruptcy Falls Off Report

[hotintexas49]

Hi Everybody!  I am new to myFICO and this is my first time on the community board. 

Right now, my FICO score is 529.  This September, my bankruptcy will reach the 10 year mark and fall off.  Can anyone tell me how many points I might get back?  Especially looking for answers from people who have gone through the pain of having a BK on their report, seeing that it is off and how many points were received.  In the meantime, I have been making good with a Capital One card that they started me at $300.  After 7 months of on time payments, they raised my cli to $500.  That was 18 months ago and has not changed.  I also have been making good on a revolving electronics purchase for the past 17 months after back to back 30 day lates.  Both were December 2011 and January 2012.  Back to the $500 Cap One card.  So, I made my case to the "manager" for a cli.  I thought it was strong and showed that I was more concerned about raising my credit limit while lowering the utilization percentage.  I was rejected.  I found out through the email they sent about a week later that they don't take requests for that card.  I also know that some people that write about their experiences with Cap One have stated their cli's have not increased in years.  We are talking 5 years, in one case.  My question:  Is it worth keeping this card active, even if I never see an increase; keeping in mind some info I have now obtained about making my payments on time, lowering my credit util and paying the balances in full, every month?  Finally, I just applied for a secured Mastercard through Capital One.  I researched the best secured cards to get and that one is Number #1 on a few blogs and websites.  I must be doing something right because they check your credit to determine whether you pay an "entry fee" of $49, $99 or $200 (within 80 days of the application).  They are starting me out at $200.  All I had to pay up front was $49.  My final question:  The maximum deposit limit is $3000.  I am also aware that a higher credit card limit raises one's score.  Please tell me how much more should I add?  Experian states that a $2000 limit in necessary, per card to raise the score.  Is this true?  I am doing whatever I can to raise my score.  My ultimate goal is 5 to 6 years from now, to have my first and only home mortgage loan.  Thank you all for any and all information you can provide me so I can once again be an outstanding responsible person financially.

[llecs]

Welcome!

It varies for everyone. I've seen some low double-digit gains all the way up to 100+ when the BK drops. It depends on what is left, baddies, length of history, CC utilization, etc.

Some CC issuers aren't too open to CLIs. I'd keep it open and use it every 3-4 months to keep it active and to keep them closing it on your due to non-use.

Ignore scores from Experian.com and ignore their advice too. FICO doesn't care if your CL is $200 or $20,000. It's how you use that CL that counts.

[mondlight]

Hello & Welcome!

I'm a new user too, and am two years away from my bk falling off my reports. I'd also be very interested to hear about other's experiences with score bumps once their bk dropped off.

The thing I can tell you regarding the Capital One situation is soley based on my own experience. Your card is a touch over 2 years old, and it sounds like it's your oldest TL. I wouldn't recommend closing it, because it will help you with your AAoA, and you've been paying it regularly. It's awesome to have that positive TL on your report at this point in time. Give it more time before you request a CLI. Over my 5+ years of having their card, they raised my limit to 5500 and upgraded me to a better product. Keep your utilization low, always pay on time, and they will likely be good to you.

I learned a lot about rebuilder/bk friendly cards on this forum. Since you just got your second CapOne, perhaps look at another lender that is bk/rebuild friendly to open up another unsecured card. Another option is to look into a rebuilder loan which should help bump your score as well.

[grassfeeder]

I would be more worried about why your FICO is 529 this long after BK versus how many points you'll gain when it falls off.  There are many members here that have rebuilt upwards of 700 with a healthy BK still on their record.

[hotintexas49]

Thank you llecs, I will definitely keep my first card for the next 5-6 years.  And I will stop my membership with Experian.

[hotintexas49]

Thank you mondlight, I am going to keep my first card for the next 5-6 years and keep the credit util between 1-9 %  I was thinking about going with a Wells Fargo secured card, just so I could have a Visa.  This is to ensure that wherever I shop, chances are, I won't be denied because I didn't have one or the other.

[hotintexas49]

Thank you grassfeeder, You are right.  The other reason my credit score is so horrible is because I have 8 delinquent accounts that I know of.  These are mostly medical and sad to put this in writing, cell phone service providers.

[PrettyPeacock]

If I were you, I would work on getting those 8 deliquent accounts squared away.  If you haven't paid them off then try and do a PFD with them where you pay them a % of what is owed if they promise to delete the baddie on your report.  If you have paid them then send them GW letters so those will come off the report.  I have a BK that is several years old and I am nearing a 700 score (should be there in the next 2 weeks) and it is because I worked on the other things. I can't do much to get the BK removed from the CR but I can do other things to make my credit healthier.  Also, the harley davidson secured cc is a good one. There is no starter fee and they will switch to an unsecured at some point with good usage, etc.  It is with USBank.  If you apply and they say wait 8-10 days for an email, trust them.  They did that with me and a week or so later, they took the deposit from my account and now I have my card. 

Good luck and just keep plugging away, you can probably get that home a lot faster than you think if you get those baddies from you CR.

Cheers

Brenda

[hotintexas49]

Thank you PrettyPeacock, I will definitely do my best to attack those delinquents with PFD's.  If these people refuse to do a PFD, what would yours or any of the members do?