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New Contributor
singleindependentmom
Posts: 86
Registered: ‎10-09-2013
0

Divorce and rebuilding credit

I'm trying to multi task by going through a divorce and rebuild my credit to buy my first home.  I only have 1 credit card, and I'm wondering if I should open up 1 more while I'm going through a divorce.  I'm just wondering if opening up one during the divorce is a bad thing. 


Starting Score: Experian 514 Equifax 510 TransUnion 510
Current Score: Experian 630 and everything still In Progress
Goal Score: First Goal 650


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Regular Contributor
Startome
Posts: 399
Registered: ‎08-21-2013
0

Re: Divorce and rebuilding credit

Do you have the funds available for a secured card? You used the terminology of rebuilding, so it seems appropriate to assume your credit scores aren't too good. My fellows here that know plenty more than I do would ask for more information also, such as current scores, any derogs, inquiries, BK, when you plan to buy the home, and more =)

Current: EQ FICO 0, TU FICO 0, EX FICO 0 | Starting Score: 0 (08/21/2013)

Starting total revolving credit: $0 | Current total revolving credit: $1600.00

Inquiries (12 Months): EQ 3-4 TU Unsure EX Unsure | Most Recent: 8/19/2013


2013 Goals:
1,000.00 Emergency Fund
1,000.00 Emergency Fund, AGAIN
Mechanically Sound Car
Unsecured Card

Fifth Third $300
U.S. Bank Harley Davidson $300
Capital One Platinum $500
2nd Capital One Platinum $500


New Contributor
singleindependentmom
Posts: 86
Registered: ‎10-09-2013
0

Re: Divorce and rebuilding credit

[ Edited ]

I do have funds for a secured card, my scores are in my signature and are very poor as you can see.  I'm trying to by my first home middle of next year. 

  • No BK's
  • Several CO's
  • No public records
  • 3 collection account open as of right now
  • A few weeks ago I paid off 5 collection accounts. 
  • 2 repo's from when I was with my Ex

 

  • I have a line of credit in good standing for 1K with my bank (never late) - ulitization is at 0%
  • 1 credit card with 1k limit, and that's in good standing (never late)- ulitization is at 0%
  • 1 car loan in good standing (Never late)

 

 


Starting Score: Experian 514 Equifax 510 TransUnion 510
Current Score: Experian 630 and everything still In Progress
Goal Score: First Goal 650


Take the myFICO Fitness Challenge
Regular Contributor
Startome
Posts: 399
Registered: ‎08-21-2013
0

Re: Divorce and rebuilding credit

You may want to start with a secured card or a store card, People can pipe in with what they think the chances of the store cards are with those scores. That's an area I don't have experience so I won't say much there. However I can say the Harley Davidson Visa (Secured, they also have an unsecured version) is the only secured card I could find that does not have an annual fee. I'm not sure it graduates though, which does bother some people.

Current: EQ FICO 0, TU FICO 0, EX FICO 0 | Starting Score: 0 (08/21/2013)

Starting total revolving credit: $0 | Current total revolving credit: $1600.00

Inquiries (12 Months): EQ 3-4 TU Unsure EX Unsure | Most Recent: 8/19/2013


2013 Goals:
1,000.00 Emergency Fund
1,000.00 Emergency Fund, AGAIN
Mechanically Sound Car
Unsecured Card

Fifth Third $300
U.S. Bank Harley Davidson $300
Capital One Platinum $500
2nd Capital One Platinum $500


Contributor
RnJ
Posts: 180
Registered: ‎08-18-2012
0

Re: Divorce and rebuilding credit

You might have a hard time getting new credit with the co's.  Try working on them first, then try a secured card with local bank (the one with your LOC would be ideal), or a local credit union.  Even if a secured card didn't graduate you in the time you wanted it to, you could apply later for a non-secured card with the secured card account still open.  The accounts you do have in good standing are good, it's the co's that are holding your score back.

Established Contributor
ktl72455
Posts: 831
Registered: ‎12-09-2012
0

Re: Divorce and rebuilding credit

SDFCU is secured, pay the deposit, get the card. No Credit Check but reports .

Also look in Credit Card Section about letting credit cards report 0.00 they say let than 9% report.

 

12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)
1/15/14 TU 665 | EQ 648 | EX 655 ~Myfico scores
6/8/14 TU08 666 | EQ08 656 |EX08 655 } EQ04
My Wallet: Cap1 3,500K ~FH 950 Credit One 1000~Orchard Bank 2000~ Matrix 400 ~NFCU nRewards 18K~NFCU Cash Rewards signature| 5K
Last Negs to fall off: 2-Cap1 CO's PD (fall off 1/17)~Forclosure (fall off 1/16)
Frequent Contributor
LearningMoreAboutCredit
Posts: 471
Registered: ‎11-08-2007
0

Re: Divorce and rebuilding credit


singleindependentmom wrote:

I do have funds for a secured card, my scores are in my signature and are very poor as you can see.  I'm trying to by my first home middle of next year. 

  • No BK's
  • Several CO's
  • No public records
  • 3 collection account open as of right now
  • A few weeks ago I paid off 5 collection accounts. 
  • 2 repo's from when I was with my Ex

 

  • I have a line of credit in good standing for 1K with my bank (never late) - ulitization is at 0%
  • 1 credit card with 1k limit, and that's in good standing (never late)- ulitization is at 0% Let this one report at least $10 (1%) and then PIF.  
  • 1 car loan in good standing (Never late)

 

 


Work on the obvious...clearing the CO's and collections from your report.  Also, look into adding another card or two...check with local CU and try this one (secured version) as there is no credit check and low APR: https://www.sdfcu.org/emv-creditcards  Not sure if it graduates to unsecure but that is something to consider.  It will help on your road to recovery.

 

Since your goal for new home is mid-2015, you've got work ahead of you but it can be done.  Good luck on your credit journey and sorry to hear about divorce.



Any advice given is always YMMV...

Current FICOs: 730+ across the board | Goal: >760 FICO (1 down, 2 to go) | Total CLs: $58.5k/$60k Goal | Utilization: 11% | Last App: 05/01/2014 | INQ: EX: 10, EQ: 14, TU: 9, All Expire 06/2016; No Collections/Charge Offs/BK's | AAoA: 6yrs.
| All Reports Frozen!!! | No Apps til 12/2015 | Homeowner since: 06/28/13 | White Whales: CSP, Discover IT, Sallie Mae WMC
New Member
armichic
Posts: 11
Registered: ‎04-23-2008
0

Re: Divorce and rebuilding credit

Im not sure of your entire situation, your income or the area in which you live and your target median home price but I would say wait on purchasing home until your score is at least high 600. That's when interest rates will be decent for you and that makes all the difference in your mortgage payment. Best ways to build credit to make a major purchase is a large commitment like a car, student loan or mortgage...but don't go broke for the sake of building credit.

 

Focus on saving for a larger downpayment and look into first-time-homebuyers and low income programs for your area if you qualify. If you start getting a bunch of new credit cards no bank will be willing to finance you with such new history but if you take care of your past delinquencies and try not to create any more bad debt, they will be happy to take your downpayment espcecially if you can find a government sponsored program to cover closing costs and other related expenses. I filed bankruptcy in 2003 after my first divorce and bought my first 2 properties with a 775 Credit score. My ex who also had a past bankruptcy and 760 score and I qualified with a combined income of ~90k for 200k of mortgage with only $2000 down on some land we bought for 18k and we used my va benefit to get the house.

 

Do some more research before committing to buying because you have to look at the bigger picture. A lot of expenses come with home ownership, things break, roofs have to be replaced, people can crash into your house, your tree can fall ont he neighbour's fence, the utilites are never cheap...youll really need the available credit then when your furnace breaks on the coldest day in the winter...time will bring many opportunities-just be patient.


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