I have been a member of the myFICO community for a while, but mostly as a reader. I recently filed for CH7 Bankruptcy in June 2017. I had my 341 hearing August 10, 2017. I am currenly in my infamous 60-day waiting period post 341 hearing. I have come here to begin the slow steady rebuild to where I was prior to my fall from grace.
I worked in the offshore oil and gas industry for about 16 years. Until December 1, 2015 when I was laid off due to the unprecendented drop in oil prices. My salary dropped from $294,000 YTD in 2015 to $46,300 YTD in 2016. As you can imagine there has been a significant lifestyle change for my entire family. We never really lived beyond our means. However, our means were much much much greater than they are now. During the period between December 2015 until April 2017, I was able to stretch things along and was never behind more than 30 days for any one creditor. However, as time went along, it became even more evident each month that I would have to file bankruptcy.
The main reason that I will be needing to rebuild my credit post discharge, other than simply wanting to rebound, is I am currently in a 5 year w/ ballon note mortgage through a community bank. I purchased this home in January 2017, as we had to downsize from a $400,000 home to a $125,000 home. During my filing for CH7, I did reaffirm my mortgage. In doing so, I have committed to this home for either being paid off in 52 months, or putting myself in a position to refinance the home in 52 months. The home was built by my wife's grandfather, and has been in the family since the early 1950's. It's a far cry from the "forever" home that we sold last fall, but it will suffice while we re-estabilsh our finances. (Please don't start in on my re-affirming the mortgage!
Anyways, it took me a while to get over my post high school recklessness with my credit, but prior to Decemeber 2015 I had a credit score in the mid-700s. I had a couple of 15K CCs, several revolving accounts, 2 signature loans over $30K each. I had the perfect credit rating for my needs. However, the drasitc reduction income was not enough for me to service the debt I had accumulated. It is significant enough that the trustee at my 341 hearing made mention in front of the crowd in the courtroom that me and my wife's case was like a unicorn. I very rare occaison of someone who has a clear reason behind my filing, and he didn't know how in the world we kept things together for 18 months with the reduction of income!
So, I am embarking on this journey pre-discharge. I have been and will continue to research furiously to figure our best path forward. The 52 month clock is ticking. I am here to re-establish my credit worthiness to refinance my current home. CCs. CLIs. Autos. All that is really not that important to me at this very moment. We have taken a much much more conservative approach with purchasing anything on credit. I understand that I will have to apply for and use CCs to rebuild, but my end game is not to have a 25K CC. I want to refinane my home in 52 months on a rate/term that I am happy, if not ecstatic with!
Thank you in advance for all the insight and help!!
I stumbled upon this board in february. It was enticing. Helpful. I obtained a discover card using some of the info. However, I never signed up and soon forgot about it. Ive since started a business and have decided to do give focussed time to my finances and credit...for the first time. Oddly, I am in my 40's.
1--Figure out where I am. I barely know.
2--Create a plan
3--Dig down into the forum
With two weeks left, it should provide enough time to formulate and begin executing on a plan.
I am new to this forum, though I must admit... have browsed this site for over a decade looking for hints and tips. So, thank you all for this challenge and all of the posts!
I know I am joing late but here goes:
Backstory 10/2016 - Had mortgage crisis and payment skyrocketed. Ended up doing a modification that went into full effect 12/2016
January- Started out all bureaus with sub 500 FICO's (several 90 day lates on mortage) Outside of mortage, kept all CC and IL payments 100% on time At the time was a little over 60% credit limit to balance
Feb- No change, just paid down CB's extra income from savings of modification 55% credit limit to balance
March - No change, just paid down CB's extra income from savings of modification 50% credit limit to balance
April - Paid off all balance (minus car loan) with unexpected work bonus. 0% credit limit to balance. 2 weeks after scores skyrocked. I was able to obtain a new vehicle loan at 2.49% through a credit union. Traded in my old upside down 18% interest rate car.
-was approved for Amazon card 300$ limit
-approved for CLI from Cap 1 2300$ limit
-approved for CLI from CreditOne 1700$ limit
-approved for Lowes credit card 700$ limit
-approved for CLI from Fingerhut - 2300$
-approved for Discount Tire - 500$ limit
I did not run a balance on any of these cards. Was just using to grow available credit. Only puirchase I made was a lawnmower at lowes that I paid off as soon as the balance posted to CB
-CLI from Amazon to 2500$
-approved for AMEX Blue - 500$ CL
-approved for VS Secret - 250$ CL
-CLI from Discount tire to 1000$
-Approved for Kohls - 300$ CL
-Approved for BananaRepublic - 300$ CL
-CLI from Amazon to 6000$
-CLI from Discount Tire to 5000$
-Approved for Floor and Decor - 3000$ limit
-CLI for Banana to 1000k
- CLI Discount Tire - 6000$
- CLI Floor and Decor - 6000$
- CLI Banana - 5000$
- Closed Indigo high rate card
- Approved for MattressFirm - 5000$ limit
- Approved for Walmart Mastercard - 800$ CL
- Approved for top tier finance with Kawaski. Purchased motorcycle # 99.95 per month with a little down. +7500 Installment Loan
- Approved for PENFED cash rewards Visa - 1800$ CL
- Approved for Firestone card - 1800 CL
Still running my balances very low and growing. According to my CB the last 90 day mortage payment will drop off in October, which will make 1 year solid with no missed payments.
Current DTI: 26%
Current Credit Limit to Balance: 11%
I have come a long way from where I was at almost a year ago.
Goal moving forward:
1. Obtain low interest no fee card to replace the credit one cards now totalling 2k limit. I do not want to throw away the available credit.
2. Stop applying so much, it has become addicting to get approved for new limits though I am not using them. My inquiries are INSANE.
Incredible rise in such short time frame. Well done.
Out of curiosity, did you keep an eye on your scores dip after every hard inquiry? Do you have a rough estimate of how many points lost vs. gained for every approved CLI and new card? I think your experience in particular could be very interesting for people who are shy about asking for CLI or new cards.
Im just ready to get my credit together. Im tired of having bad credit..lol
My goals for 2017
1) Raise FICO to 720
2)Increase CL to 50k+
3) Start my buisness
I just need to get my butt in gear and pay off some stuff! Currently sitting with 13 collections from old medical bills. I have been working on my credit myself for about a year with out really trying. I have managed to get my score from a 456 to a 548. I found this site and I want to buckle down and get this taken care of! Looking forward to a new car with a decent interest rate in 2018!
Fairly new to the board, but have found so much useful information over the last few months. I have been living in the U.S. for a few years now and started to take building my credit a lot more serious late last year. My goal to close out 2017 it to reduce my revolving utilization and build on some business plans I have.
Been on the forum for awhile, been working on my credit for awhile. Last year or so have been hovering in the low 600-630 range. Decided I want to dedicate a bit more to making things take that next upward leap, so took a payout from a recent accident (other party at fault) and put that money towards paying stuff off and started working on a plan for the next steps.
Goals for the remainder of 2017:
I don't have specific score goals at this point since it's going to waver a lot with recent changes.
By the end of 2018 I would like to see my score over 700 if I can.
Back story: In late 2012/2013 I went through a divorce. Prior to all of that, my score was 722 and climbing. The divorce left me in financial ruin - I was borderline bankruptcy, but ended up consolidating debt. I completed that program in late 2015/early 2016. My scores, were, obviously, horrible. At one point they dipped into the low 400s (like 432) - I stopped checking at that point for quite some time.
Obviously the "delinquent" payments on the paid off/settled accounts are going to show for awhile. This winter, when I have more time available, I will look into some GW removals of the settled accounts as that is hurting things more than anything. Primary, above FICO, however, is contintuing to improve my personal financial situation and avaialble funds rather than living "paycheck to paycheck."
It may seem a bit unusual to start a challenge, given my circumstances. I am an 80 year old man and I have lost both my wives due to illness, however I am in excellent health and expect to live to my 90's (good genes on both sides of my family). My current FICO is 571 because I incurred over 30K in unsecured debt due to no longer working so I could be a fulltime caregiver for my invalid wife. I enrolled with National Debt Relief in May of 2016 with 9 active creditors and 27K in debt and have since paid it down to 16K with 5 creditors, but of course my FICO took a big hit. I now have 2 active credit cards with 0.00 balance owed, and no other type of debt other than the NDR program. I would like to get my FICO back to 700 or so, just because! My 60 year old daughter recommended MiFICO community as a good place to get ideas on how to improve my FICO. I will have the NDR program paid off in 18 months or so. I fully realize my FICO will be negatively affected during that period, but I still want to have something to work towards.
I look forward to any help the Community can suggest
So I am out of a chapter 13 - with a discharge in late April. This was successfully completed. Our refinances have rebounded nicely. The reason for our Chapter 13 was a suggestion of our mortgage servicer to go 30 days plus one late to get a lower interest rate from our current 7.65%. We were shooting for a HARP. I was in low 500's around April. With a lot of work and credit disputes, I was able to rebound my score to the mid 600's. We just refinanced our mortgage at 3.75%. We have plenty of cash in the bank - credit card balances to zero.
My goal this year to early next year is to get into the mid 700's. I am waiting for my FICO scores to update since we just paid all credit card balances - $1250 - to zero. The simulator shows me just shy of 700. With that said, I have found a new additction to building my scores and paying off all debt. Nothing like coming out of a Chapter 13 and paying off all debt restructered under the plan. Here's to a better credit score future - I am hooked!!