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New Member
Posts: 4
Registered: ‎12-27-2012
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Starting Over

I could use some advise. It's been a long journey for me. After near perfect credit. An ugly divorce eventually left me with no choice other than to file Chapter 13 BK.  My house and car was excuded and continued to paid on time (as it always had been.)   After five years @ over $1100 per month payments I was done.  Oddly, I just got my discharge on Monday. Why it took  eight months, no one can tell me. My lawyer was useless.  My questions - when do I run my credit report, to find a starting point ?  I have been paying my mortgage for seven years (never late.)  Is it necessary to get a credit card in order to rebuild my credit ?  Does anyone have any other advise ? I would eventually like to refi my mortgage. My husband, who is was party to the BK is not on the mortgage (and has superior credit)  and can be added but I know I still have to wait.  Any help will be greatly appreciated.

Valued Contributor
Posts: 1,206
Registered: ‎02-19-2012
0

Re: Starting Over

Sadly the only thing you can do is a time thing.  Yes to the CC you may have difficulty with the BK but the others will chime in that have dealt with it but definitely two cards probably secured and timely payments continued .  Also get credit reports in case anything that was included in BK shows up as 180 late / chargeoff.  Hang in there!


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Senior Contributor
Posts: 3,453
Registered: ‎11-30-2007
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Re: Starting Over

I don't know about regular banks, but credit unions seem to be the way to go.  Please keep up with your credit reports, some of these peeps can be sneaky!

 

 

Frequent Contributor
Posts: 373
Registered: ‎03-16-2011
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Re: Starting Over

hang in there.it takes awhile for the neg info to fall off up to 10 yrs for bk i believe. i personally would wait till early feb just to allow time for all the records to update, but i dont see anything wrong with pulling one today to get an idea.  in feb instead of paying for the report i would suggest pulling via .annualcreditreport.com if you haven't already used your yearly.  the ones you get from there will list the dates the neg info will fall off your reports, the ones you purcahse typically do not have that for some reason. i also would said yes get a credit card, i would suggest starting with a secured card from your bank, just make sure it reports to the at least one of the credit bureaus. if they dont offer it one im sure you can find some good suggestions on here.  I will say avoid avoid 1st premier bank offers at all costs! i didn't file for bk but when i started out i had everything but that i think, i had lates, charge offs, collections. i didn't have the money to put up for a secured card, so i fell for 1st premier offer, it comes loaded w/ fees and a very low limt, most of which is used up by the setup, and annual fees, they also charge you a monthly servicing fee! You should expect to pay an annual fee for awhile, and high interest, just try to pay in full everymonth or even before the statement cuts. i am finally coming up on the 7 yrs  for most of the stuff to fall off my report and i am finally getting offers w/ no annual fees and reasonable limits- rates are still varrying my lowest rate is 13.99%  highest is 22%


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New Member
Posts: 4
Registered: ‎12-27-2012
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Re: Starting Over

I appreciate all the advice. I will pull a credit report next week and start investigating credit cards. I have not intention of buidling up any balance.  My situation is not the same as it was, so that danger is not there. I don't buy anything I can not pay for.  Most of what was in the BK was  the fallout from the divorce - now a distant memory (except for the credit issues.)  I am hoping my good  mortgage payment record (and car payment, when I had it) will help. Time will tell.  Thank you all again :smileyhappy: 

Established Contributor
Posts: 848
Registered: ‎12-09-2012
0

Re: Starting Over

You can try Capital One, it see's what it can offer you with out pulling a credit report. I have low scores and I was approved going that rought then finished up and they pulled credit report but I got a 500.00 Credit limit. Not much but its not secured.

 

 

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New Member
Posts: 4
Registered: ‎12-27-2012
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Re: Starting Over

Thanks for the Capitol One tip. I hear that once the discharge is processed I will get loads of offers CC in the mail LOL.  I don't need much of credit line, since I am only going to use it to establish credit (grocery store, small purchases etc and pay off at the end of the month.)  My ultimate goal is to evenually refi the house (adding on the hubby.) I know I'll have to wait at least two years.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Starting Over

Yes I would try the Classic Platinum Cap1 card. Build history for 6-12 mos and then you can app or PC to the Cash Rewards card. Having 2-3 cards is ideal for rebuilding credit. I also filed a Ch 13 in Oct 2005. Discharged in Jan 2011 and removed from my reports Oct 2012. I got an Orchard card in 2009 before the discharged (this card isn't offered anymore as Cap1 took over). I got a Cap1 Cash Rewards card in July 2012 w/ a 2000 CL. It is nice. I can put almost all my everyday expenses on it and I pay it in full every month...have earned $80 cash back so far. Was approved for tier 1 luxury lease financing last month and we will close on our house in Feb. Also got conditional approval for the Chase Freedom this month. So based on my story, you are almost there! :smileyhappy:
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
New Member
Posts: 4
Registered: ‎12-27-2012
0

Re: Starting Over

Thanks MovingForward...you really gave me hope for the New Year :smileytongue:  Good luck to you !

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Starting Over

I think the new year will be great for you! You have been paying your mortgage on time and are in a great position for new credit. I think you will get that mortgage refinance easy in two years.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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