credit rebuilding question...

[Alpha]

Last Friday i had my 341 meeting and the trustee said i was a no asset case.so it looks like once the 60 day dispute period is up i will be discharged. I reafirmed the house because i have equity and want the lender to keep  reporting to credit agencies. in order to be able to do a chapter 7 i also had to reafirm my car loan to make the expenses work out.. so with both of these loans still reporting and never having  late or missed payments on either loan how will that work out for rebuilding credit?  I don't really want any credit cards as that is what got me in trouble before.. maybe just one for emergenccies and purchase protection.  just curious if the house and car loans are enough to re-establish.

 thanks for any input..

[StartingOver10]

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@Alpha wrote:

Last Friday i had my 341 meeting and the trustee said i was a no asset case.so it looks like once the 60 day dispute period is up i will be discharged. I reafirmed the house because i have equity and want the lender to keep  reporting to credit agencies. in order to be able to do a chapter 7 i also had to reafirm my car loan to make the expenses work out.. so with both of these loans still reporting and never having  late or missed payments on either loan how will that work out for rebuilding credit?  I don't really want any credit cards as that is what got me in trouble before.. maybe just one for emergenccies and purchase protection.  just curious if the house and car loans are enough to re-establish.

 thanks for any input..

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^^^Half of the sentence above is great and the other half is an unknown.

The half that is great is that you reaffirmed your mortgage because you have lots of equity.  That is a good move.

The half that is unknown is the reporting of the payments to your CR.  Not all reaffirmed mortgage or auto loans are reported. I sincerely hope your mortgage and auto loan payments are reported. Make sure you make your payments DURING your Bk 7. You will need to contact the creditors and make the payments to the Bk department until you are discharged.

There is no legal requirement that the mortgage servicers report your payments after your discharge. So, keep very good records of your payments.

[Alpha]

thank you for the response, i have made my payments on time with out missing any even during BK. one lender is ford motor credit and the other is carrington mortgage. hoping they continue to report.

[DaveInAZ]

Have you signed & filed the reaffirmation agreements? If not, try to get a clause inserted that Ford & Carrington promise that payments made under reaffirmation will be reported to the CRAs.

Those 2 installment loans will help alot in rebuilding your credit, but youy'll need revolving credit *CCs) to rebuild your credit more fully. After discharge try the Capital One pre-qualifier (Goggle it), it will show you if they will approve you for a CC without a hard pull on your credit. Just use it carefully for small purchases that you can pay in full. Don't worry - excessive CC debt was my undoing as well, while I could afford my mortgage. After going through something as trying as a BK you'll be surprised how easy it is to manage CC usage so it doesn't get you into trouble again. When your in a store admiring that nice new 60" TV, just remember the creditors meeting - you'll walk away, happy with your current 19" TV.

[Alpha]

captial one was one of the CC's i took down as well as discover and synchrony bank..  i am thinking i will be black listed by those folks. as well as credit one which i have had for many years

[TRC_WA]

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@Alpha wrote:

captial one was one of the CC's i took down as well as discover and synchrony bank..  i am thinking i will be black listed by those folks. as well as credit one which i have had for many years

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CapOne and Synchrony are pretty forgiving...

Discover will blacklist you for a while.

[DaveInAZ]

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@TRC_WA wrote:

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@Alpha wrote:

captial one was one of the CC's i took down as well as discover and synchrony bank..  i am thinking i will be black listed by those folks. as well as credit one which i have had for many years

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CapOne and Synchrony are pretty forgiving...

Discover will blacklist you for a while.

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Yeah, Citi, Cap One & Chase were my biggest CC creditors, and I also burned Synchrony for a couple accounts. I opened a secured MC a few months after discharge and kept the balance low and paid promptly. Target (TD Bank) gave me a Target store card  2 years after BK, and Synchrony gave me a Walmart card a few months later, and then an Amazon store card a few months later.. Cap One acquired my secured card and my Best Buy MC, but I avoided applying directly to them as I assumed I was blacklisted. Then when I started hanging out here on the MyFico forums I learned about their pre-qualifyer. I tried it last October and it promptly recommended the Quicksilver 1% reards card. I was still nervous when I applied, and then that nervousness turned to stunned surprise when they approved me for a $10k limit.

As TRC said, Cap One & Synchrony are pretty BK forgiving, Discover not so much, and Chase & Citi not at all.

[Alpha]

thank you for the info. i don't feel quite so hopeless now. my biggest goal is to live totally within my means and use credit only as a rebuiling tool and not get out of control.