Re: Planning For Recovery
12-02-2012 06:44 AM
Colter, congrats on moving on with your life. BK can be tough, but honestly for me it was a life saver. I like you, suffered huge business losses and dug deeper, used my 50k in credit limits to spot-weld and eventually came to realize BK was the way to go.
Your plan should involve getting positive tradelines reporting ASAP, and ensuring your CR is reporting accurately as quickly as possible, so a monitoring service with 3-daily pullers will be your friend. Also, sign up for creditkarma. Dispute till kingdom come until lines are reporting accurate information. I am currently working on a 24 month plan to re-enter the 700+ club. Bear in mind, I burned AMEX, Citi, Chase and Capone in my BK. Also, do your best to app sparingly, I use whogavemecredit and credit pulls database to verify before I app for anything. INQs will hurt you.
So the plan, month 1,1. use Capone's soft puller, see if you qualify for any of their unsecured products. If not, get their secured card for what ever limit you like. Cap one forgives and will report to all three. Never ever have over 10% util. I would also consider a small credit builder loan from a CU or an autoloan that you can handle. The rate will likely be abysmal but you can refi if your LTV is reasonable.
2. 3 months after secured, app for a Capone unsecured and CreditOne card. CreditOne is horrible, but they have a soft pull prequalifier. You should now have several positive tradelines. Consider opening a few cards via shopping cart trick. They should help your util and available credit limit (Buckle, express, Jcrew, roamans, vsecrets are known culprits for the trick)
3. Around 6-7 months after your first tradeline began reporting, Barclays should enter the mix. Their apple card seems to be very favoravble.
4. At 12 months, Discover. ( This is my plan)
I am only a few months in, my score has gone from 400s pre BK to 500s post BK to 650s 6 months out. I will be back at 700 within 24 months if I let my accounts age properly and stick to my plan I think. Also, I will close CreditOne at 11 months for sure.
For the immediate future, I would forget about AMEX, BOA, Chase, and Citi. They are likely to decline with vengeance and gusto. With time, and care of your lines, things should be looking good pretty quickly.
Sounds exactly like SoulMaster's plan.. OP, you can find his detailed step by step here:
Starting Score: 426 Ch. 13 BK Filed Sep 2009; Discharged Jan 2013
Current Score: TU 715 EQ FICO 693 EX 660 all via lender pull 5/9/13
Goal Score: 720