Hi,
I am trying to rebuild my credit after chapter 7 bankruptcy discharage in Oct 2010. I was able to increase my FICO from 512 at low to 673 now. I need advice on how to get to the next target of 740+ please. Here's my current credit profile:
Mortgage with Wells Fargo, FHA, just funded. Loan amount of $540k
Auto loan with Chase from Oct 2011, outstanding balance $19k.
Credit cards:
Capital One Spark - $9k
Capital One - $1750
Prepaid credit card - $1000
Utilization: 1-3%
I don't have any other debt/loans.
My BK chapter 7 was discharged in Oct 2010, and the period leading up to that had MANY late payments, many of which was past 60 days. However, my payment history has been clean for 3 years and 5 months with no incidence.
I would really appreciate any help in terms of next steps to get my FICO to 740+.
Here's what I am thinking right now:
1). Should I apply for another credit card? Perhaps something more "prestigious" than the capital one cards I have now 
Good or bad idea towards goal of increasing FICO?
2). I am thinking of trading in my current car for a new car at a much lower interest rate; potentially buy or lease the new car. The current loan would be paid off and I would get a new loan or lease at a much lower rate. Good or bad idea towards goal of increasing FICO?
Other suggestions of steps to take to increase my FICO to 740+?
Thank you in advance.
i think the bankrupt holding your score down. I just get my last Charge off account remove and my credit increase +60 points.
I dont think apply or get any more credit will bring your score up but down because new inquiry and new trade line would low your score.
Starting Score: 560
@mebtba wrote:Hi,
I am trying to rebuild my credit after chapter 7 bankruptcy discharage in Oct 2010. I was able to increase my FICO from 512 at low to 673 now. I need advice on how to get to the next target of 740+ please. Here's my current credit profile:
Mortgage with Wells Fargo, FHA, just funded. Loan amount of $540k
Auto loan with Chase from Oct 2011, outstanding balance $19k.
Credit cards:
Capital One Spark - $9k
Capital One - $1750
Prepaid credit card - $1000
Utilization: 1-3%
I don't have any other debt/loans.
My BK chapter 7 was discharged in Oct 2010, and the period leading up to that had MANY late payments, many of which was past 60 days. However, my payment history has been clean for 3 years and 5 months with no incidence.
I would really appreciate any help in terms of next steps to get my FICO to 740+.
Here's what I am thinking right now:
1). Should I apply for another credit card? Perhaps something more "prestigious" than the capital one cards I have now
2). I am thinking of trading in my current car for a new car at a much lower interest rate; potentially buy or lease the new car. The current loan would be paid off and I would get a new loan or lease at a much lower rate. Good or bad idea towards goal of increasing FICO? Installment loans help your credit mix when open. When closed they are still factored into your AAoA. You may or may not see a bump in score when you pay it off since installments do not factor into your score that much. By opening another one you will still have a good mix of credit and shouldn't lose points.
How many accounts are there on your CR that were IIB? Are there any that are coming off soon? I agree that the BK is still holding your score down.
Is there anything on your CR not IIB that could maybe be GW off?
For now, I think you are doing everything you can do. It will just take some time. How old are your CC? Letting them age with good payment history will pay off in the end.
Other suggestions of steps to take to increase my FICO to 740+?
Thank you in advance.