topic Re: What I've learned in a year in Bankruptcy

What I've learned in a year

bunga7 — Mon, 03 Nov 2014 20:33:32 GMT

For those of you just starting out on this long, slow journey back fom Bankruptcy, i've learned a few things, mostly by reading and following advice here...

1) you don't NEED more than 2 credit cards to get you on the road to recovery. But 2 cards and an installment loan or two will do it.

2) I follow the 700 in 24 months plan as close as I can, but as is stated so many times...everyone is different, and your milage may vary. I see people approved for cards that I get denied for. It used to frustrate me, especially starting out, but now I know I'm on the right track

3) personally, I think a credit union is the way to go...it doesn;t have to be Navy or the others that are so BK friendly. Open an account with a local CU...get a relationship started. There's nothing like going to your finanacial institution and having them remember WHO you are.

4) NO ONE can explain the credit report services...ou might as well not fret about them. Use them as a GUIDE ( a way to track progress) and nothing more. I've had a national bank tell me that their service is so close to the actual score, and then run my score and it's no where close. I canceled the reporting afterwards.

5) SAVE...something I rarely did. I know have 10K in the bank (from one yer of saving) set aside for down payment on a house in another year. And vacation in Dec.

6) There are many things we want, but do we NEED? I always ask myself, can I pay it off before the bill cuts. If not, maybe I don't nee it this month.

7) Keep your credit card balances to no more than 9% reporting and have at least one report balance every month.

As Crockett said on "Miami Vice"...Chill out. Take it slow, don't sweat the little things. I'm at 673, 663, and 660 for scores just 12 months from BK7. 700 is in my sites!

Re: What I've learned in a year

Scupra — Thu, 06 Nov 2014 00:18:43 GMT

Congratulations on your hard work paying off. Keep it up!

Re: What I've learned in a year

bunga7 — Wed, 31 Dec 2014 02:53:22 GMT

I've been a good boy with credit lately. I did apply for a Walmart card and was approved in October. Have been paying all cards down to $0 every month while letting one card report less than 9% total. Two weeks ago my 2-year lab retreiver hurt her knee (tore CCL). and the day after christmas she tore it a little more. So she's having surgery next week. I have the money in savings to cover it (that's no nice to be able to say finally). Today while checking my checking account online with my CU, there was a notice about a loan [rogram that was ending...A "whatever" loan for $1,000 with no credit pull. So I stopped to the CU and asked an officer about it...12 monthly payments (similar to a rebuild loan). I told her I could pay for the surgery out of savings, but we know once it's gone how hard it is to build it back up again.

We talked it over and decided that in the long run, it should help my credit score to have a signature loan, and the payments are paid off the top of my bi-weekly direct deposits. So, I'm approved for another $1,000 loan. Later, I was going through the info from the vet and they had literatrure about CareCredit. I burned GEMoney so didn't figure I had a chnace, but apped anyway and was approved for $1200. I can go with 6 mos. no interest, or 24 mos. at 14.9%. Not too bad, considering. So, I think I'll use the CU loan as a credit builder, just stick the money in savings and make payments with it, and use carecredit for the dog. It's nice to have some choices again.

Re: What I've learned in a year

Anonymous — Wed, 31 Dec 2014 14:24:03 GMT

Congrats! Very hopeful for a rebuild that is similar.

One point you hit on was about cash reserves. I think the "silver lining" of sorts of having bad credit is that it forces you to pay cash. In the past few years it has trained my Husband and I to really save and think about our purchases. After our Jan 2015 Chapt. 7 discharge, we feel having an emergency fund and then a seperate cash savings account will set us up for success quicker then having a wallet full of new credit cards. Cash is truly power today!

Good Luck in 2015!

Re: What I've learned in a year

DaveInAZ — Fri, 02 Jan 2015 14:35:20 GMT

@bunga7 wrote:
I've been a good boy with credit lately. I did apply for a Walmart card and was approved in October. Have been paying all cards down to $0 every month while letting one card report less than 9% total. Two weeks ago my 2-year lab retreiver hurt her knee (tore CCL). and the day after christmas she tore it a little more. So she's having surgery next week. I have the money in savings to cover it (that's no nice to be able to say finally). Today while checking my checking account online with my CU, there was a notice about a loan [rogram that was ending...A "whatever" loan for $1,000 with no credit pull. So I stopped to the CU and asked an officer about it...12 monthly payments (similar to a rebuild loan). I told her I could pay for the surgery out of savings, but we know once it's gone how hard it is to build it back up again.

We talked it over and decided that in the long run, it should help my credit score to have a signature loan, and the payments are paid off the top of my bi-weekly direct deposits. So, I'm approved for another $1,000 loan. Later, I was going through the info from the vet and they had literatrure about CareCredit. I burned GEMoney so didn't figure I had a chnace, but apped anyway and was approved for $1200. I can go with 6 mos. no interest, or 24 mos. at 14.9%. Not too bad, considering. So, I think I'll use the CU loan as a credit builder, just stick the money in savings and make payments with it, and use carecredit for the dog. It's nice to have some choices again.

Just an FYI, it pays to keep track of who is the actual credit grantor for store & other credit accounts. GE Money Bank is now Synchrony Bank, and they are the credit grantor for WalMart store cards, so your payment history on your WalMart card gave you an "in" for the CareCredit for veterinary care from GE/Synchrony. And sounds like you made some excellent choices for credit rebuilding with the CU installment loan & CreditCare.And yeah, I opened a savings account at a CU in late Nov. and they were bugging me about a "whatever" loan for the holidays, but I'm saving them for a car loan after I refi my mortgage.

Re: What I've learned in a year

TRC_WA — Fri, 02 Jan 2015 14:41:36 GMT

@DaveInAZ wrote:
Just an FYI, it pays to keep track of who is the actual credit grantor for store & other credit accounts. GE Money Bank is now Synchrony Bank, and they are the credit grantor for WalMart store cards, so your payment history on your WalMart card gave you an "in" for the CareCredit for veterinary care from GE/Synchrony.

Yep... I did exactly that when I opened my Barclay Apple in 9/13... Sallie Mae was what I wanted all along but I knew my profile wasn't there yet. So I used that card to build a history with them... and 16 months later I got my Sallie Mae... then transferred the limit over and closed the Apple.

GE/Synchrony helped me get started last year with 2 gas cards as well as Walmart and Care Credit. A good bank to help with rebuilds, they just aren't all that nice when it comes to CLI. It seems way too random... I've got $150 each on my gas cards and $300 on Walmart in a year... and have seen people with worse profiles getting CLI every 4 months.

Can't explain it. At any rate, I've since closed the 2 gas cards, don't need them now that I have Sallie Mae.

Re: What I've learned in a year

DaveInAZ — Fri, 02 Jan 2015 15:34:26 GMT

@TRC_WA wrote:
Yep... I did exactly that when I opened my Barclay Apple in 9/13... Sallie Mae was what I wanted all along but I knew my profile wasn't there yet. So I used that card to build a history with them... and 16 months later I got my Sallie Mae... then transferred the limit over and closed the Apple.

GE/Synchrony helped me get started last year with 2 gas cards as well as Walmart and Care Credit. A good bank to help with rebuilds, they just aren't all that nice when it comes to CLI. It seems way too random... I've got $150 each on my gas cards and $300 on Walmart in a year... and have seen people with worse profiles getting CLI every 4 months.

Can't explain it. At any rate, I've since closed the 2 gas cards, don't need them now that I have Sallie Mae.

What's so great about the Sallie Mae CC?, I just heard of it recently. I got a Barclays Rewards MC w/$2500 CL in 4/12, now up to $5700 CL, so I should be good for a Sallie Mae. And yeah, Synchrony is pretty BK forgiving, but slow with CL increases - I got a WM card w/$1400 CL in 2/13 and it took them 14 months to raise it to $1600, but then only 2 months to raise it to $2400.

My "champion" CC is my Best Buy Rewards MC, opened in 10/11 (less than 1 yr. after BK7 DC) from HSBC with a paltry $500 CL and $60 annual fee. Cap One bought the HSBC subprime CCs from them a few months later and they raised the CL to $1k. Then Citi bought the Best Buy CCs and they raised the CL to $2k last fall. Cap One gave me a QS card w/$10k limit last Oct., I'm conviced the post BK payment history on the BB MC helped that. The Citi Double Points CC is the card I want, but their pre-qualifier doesn't match a card for me, I probably need to get the mortgage refi & then car loan on my CR for several months before they'll condsider me, they were my 2nd biggest creditor in my BK7 DC, and they aren't very BK forgiving.

Re: What I've learned in a year

TRC_WA — Fri, 02 Jan 2015 15:53:11 GMT

@DaveInAZ wrote:
@TRC_WA wrote:
Yep... I did exactly that when I opened my Barclay Apple in 9/13... Sallie Mae was what I wanted all along but I knew my profile wasn't there yet. So I used that card to build a history with them... and 16 months later I got my Sallie Mae... then transferred the limit over and closed the Apple.

GE/Synchrony helped me get started last year with 2 gas cards as well as Walmart and Care Credit. A good bank to help with rebuilds, they just aren't all that nice when it comes to CLI. It seems way too random... I've got $150 each on my gas cards and $300 on Walmart in a year... and have seen people with worse profiles getting CLI every 4 months.

Can't explain it. At any rate, I've since closed the 2 gas cards, don't need them now that I have Sallie Mae.
What's so great about the Sallie Mae CC?, I just heard of it recently. I got a Barclays Rewards MC w/$2500 CL in 4/12, now up to $5700 CL, so I should be good for a Sallie Mae.

Sallie Mae seems to be the Barclaycard that everyone wants.

https://www.salliemae.com/credit-cards/sallie-mae-card/

$25 statement credit on first card use

5% CB on first $250 in groceries per month

5% CB on first $250 in gas per month

5% CB on first $750 in books per month (that means anything from Amazon.com)

1% CB on all other purchases

No AF

Mine hasn't arrived yet... expecting it any day. I think you'd be good with the Barclays history... let us know if you app.

Re: What I've learned in a year

DaveInAZ — Fri, 02 Jan 2015 16:25:03 GMT

@TRC_WA wrote:
Sallie Mae seems to be the Barclaycard that everyone wants.

https://www.salliemae.com/credit-cards/sallie-mae-card/

$25 statement credit on first card use

5% CB on first $250 in groceries per month
5% CB on first $250 in gas per month
5% CB on first $750 in books per month (that means anything from Amazon.com)
1% CB on all other purchases
No AF

Mine hasn't arrived yet... expecting it any day. I think you'd be good with the Barclays history... let us know if you app.

- I knew about the $25 credit for 1st use within 3 months, but I got spoiled by Cap One's $100 credit for charging $500+ within 3 months. But that 5% CB on $250 in groceries & gas per month is tempting. I swore I was going to garden until the mortgage refi and then car loan, but I'll think about it.

Re: What I've learned in a year

bunga7 — Mon, 05 Jan 2015 18:22:21 GMT

@DaveInAZ wrote:
@bunga7 wrote:
I've been a good boy with credit lately. I did apply for a Walmart card and was approved in October. Have been paying all cards down to $0 every month while letting one card report less than 9% total. Two weeks ago my 2-year lab retreiver hurt her knee (tore CCL). and the day after christmas she tore it a little more. So she's having surgery next week. I have the money in savings to cover it (that's no nice to be able to say finally). Today while checking my checking account online with my CU, there was a notice about a loan [rogram that was ending...A "whatever" loan for $1,000 with no credit pull. So I stopped to the CU and asked an officer about it...12 monthly payments (similar to a rebuild loan). I told her I could pay for the surgery out of savings, but we know once it's gone how hard it is to build it back up again.

We talked it over and decided that in the long run, it should help my credit score to have a signature loan, and the payments are paid off the top of my bi-weekly direct deposits. So, I'm approved for another $1,000 loan. Later, I was going through the info from the vet and they had literatrure about CareCredit. I burned GEMoney so didn't figure I had a chnace, but apped anyway and was approved for $1200. I can go with 6 mos. no interest, or 24 mos. at 14.9%. Not too bad, considering. So, I think I'll use the CU loan as a credit builder, just stick the money in savings and make payments with it, and use carecredit for the dog. It's nice to have some choices again.
Just an FYI, it pays to keep track of who is the actual credit grantor for store & other credit accounts. GE Money Bank is now Synchrony Bank, and they are the credit grantor for WalMart store cards, so your payment history on your WalMart card gave you an "in" for the CareCredit for veterinary care from GE/Synchrony. And sounds like you made some excellent choices for credit rebuilding with the CU installment loan & CreditCare.And yeah, I opened a savings account at a CU in late Nov. and they were bugging me about a "whatever" loan for the holidays, but I'm saving them for a car loan after I refi my mortgage.

Thank you for the comments. I did know that GE Money was now basically Synchrony. I was surprised because I'd only had the Walmart card for three months, but I do use the card for some household things, and pay it off regularly so I think that looks good with them. I'm doing the Carecredit thing as a 6 month-no interest deal. I'm teaching an extra course, so I know I could pay it off in two months of needed, What I haven't decided is whether it would be better to pay it off early, or go the full 6 months (really 5.5 months so I know I'm not close to getting dinged.) Any thoughts from anyone which way would look better for credit report or futue credit?

Re: What I've learned in a year

DaveInAZ — Mon, 05 Jan 2015 19:41:17 GMT

@bunga7 wrote:
Thank you for the comments. I did know that GE Money was now basically Synchrony. I was surprised because I'd only had the Walmart card for three months, but I do use the card for some household things, and pay it off regularly so I think that looks good with them. I'm doing the Carecredit thing as a 6 month-no interest deal. I'm teaching an extra course, so I know I could pay it off in two months of needed, What I haven't decided is whether it would be better to pay it off early, or go the full 6 months (really 5.5 months so I know I'm not close to getting dinged.) Any thoughts from anyone which way would look better for credit report or futue credit?

I'd go for the 5.5 mos. I have a Barclaays MC and they sent me checks with 0% inerest for 15 mos. I needed the short term loan and used $3300 of my $3500CL. The 0% ended 9/2014 and I paid the card in full in Aug. Barclays responded by raising my CL to $5700. My credit score took a hit with that high a CC utilization, but when I paid it off it bounced back higher than ever. And free use of OP's money is one of my favorite things.

Re: What I've learned in a year

TRC_WA — Mon, 05 Jan 2015 20:32:21 GMT

The only good thing about Synchrony is Care Credit.

They do not grow with you... I got fed up with my Walmart card and the joke $100 CLIs so I closed it the the other day. I didn't shop there anyway. I was holding out for the Walmart MC upgrade but don't really care now because my other cards are better.

Synchrony is great when you first start your rebuild... but once you get yourself some better cards don't expect Synchrony to follow suit.

Re: What I've learned in a year

SmarahJ — Wed, 01 Apr 2015 01:52:36 GMT

Synchrony and Comenity bank seem to have black balled me. They were included in my bankruptcy and a few of the cards I have applied for they have been denied only because of the bankruptcy. My credit score is finally considered average and I was just approved for my first 2 cards after the bankruptcy.

Where can I learn more about this 9% balance thing? I want to make sure that I'm using these cards in a way that will improve my credit not damage the work I've done.

Re: What I've learned in a year

Anonymous — Thu, 02 Apr 2015 18:58:19 GMT

Smarah,
They'll both let you back in eventually. I haven't had any luck with Synchrony yet personally but I've seen many on this board say around 6 month post discharge they were let back in. My wife burned Comenity in bk7 and she got a VS card about 4 months after discharge.

The 9% thing is to let just 9% of your credit limit report. For example if you have a $500 limit let $45 report at the end of the billing cycle.

Re: What I've learned in a year

missgaonmymind — Thu, 02 Apr 2015 21:31:32 GMT

Your advice speaks to my situation. I'm always reading about those coming right out of BK and getting approvals even on those who they've burned. Not me. I was discharged in Oct. 2014 and I haven't been able to get any of the cards that is named in the "How to get a 720 in 24 months" or the ones that I listed in my BK (Cap One, Credit One, First Premier). Even when I went to look for another car after the BK, I have so many inquiries that it has started to negatively affect my score. So, I do have a car loan that I got in November 2014 that I'm hoping to get re-fi'ed down the line, and I've joined a credit union in December 2014. So yes, I used to get so frustrated getting denial after denial, but I've faced it, that time is only going to heal my wounds. Another one of my goals is to get my savings up, so thanks for the motivation.

Re: What I've learned in a year

padme — Thu, 02 Apr 2015 23:31:52 GMT

Been like 18 months for me, and the one thing i learned is how to actually save ur money and make it work for you. I took the cash i wouldve been paying CC's and opened a RothIRA and began saving there as much as i can. Not everyone can but anything is a great start!