topic Re: Question regarding rebuilding in Bankruptcy

Question regarding rebuilding

Anonymous — Fri, 10 Mar 2017 21:49:06 GMT

I just got my discharge 3 weeks ago and am actively starting the rebuilding process. I have read the rebuild to 700 in 24 months thread and had a few questions.

I have already burned the following companies

SYNCB/WALMART
KOHLS/CAPITAL ONE
SYNCB/AMAZON PLCC
TD BANK USA/TARGET CREDIT
CREDIT ONE BANK
GATEWAY ONE LENING AND FIN

so getting a Credit One card is out of the question. I did reaffirm an auto loan with Capital One which is in perfect standing with 1 year of payments. I saw they were listed as a follow up card to replace the Credit One card with so I went ahead and applied for one. I was approved for the Capital One Master Card Platinum with a $1,000 credit line, no annual fee and 25% apr. I obviously plan to keep this card at less than 10% utilization but I was wondering if I should be looking into additional cards? I noticed the strategy seems to be to have 3 cards (two paid in full with 0 balance on statement and 1 with a low amount such as $10 due). Also, I currently bank with Wells Fargo as they are all over my home state (Arizona) so is it still worthwhile to go the Navy Federal Credit Union route? Especially seeing as they have no branches in my state. I am just looking for advice on what my next step should be to work towards this credit rebuild.

Also, I haven't yet signed up to myfico (I plan on it) for reporting but I do know my FICO score is somewhere around 550.

Thank you so much!

Re: Question regarding rebuilding

Anonymous — Sat, 11 Mar 2017 15:16:51 GMT

You definitely want to add 2 more revolving accounts and probably a credit builder loan with a credit union or you can use self lender. You pay either 50 or 100 dollars a month and they put it in a savings account basically. They report monthly to all 3 CB's and at the end of the 12 months you get 600 or 1100 back depending on the plan you chose. Good way to save money and build credit. As far as 2 more revolving accounts...open sky has a secured card that doesn't HP for approval and reports to all 3. That's if you don't want any inquiries. Discover has a secured card that graduates after a year or so. Same with BoA secured.

Re: Question regarding rebuilding

Anonymous — Sat, 11 Mar 2017 15:18:06 GMT

But yes if you can join navy Fed... very BK friendly. I wouldn't know personally since I burned them in my bk but it's all over the forums how friendly they are

Re: Question regarding rebuilding

Anonymous — Mon, 13 Mar 2017 21:31:02 GMT

Thanks for the information! I am going to look into my bank for a credit building loan which will help start saving as well. As for the 2 additional cards should I go ahead and apply for them simultaneously or would it be better to wait a certain amount of time between opening up new cards?

Re: Question regarding rebuilding

Anonymous — Mon, 13 Mar 2017 21:50:26 GMT

If you choose to get a secured card with open sky then you won't have to worry about 2 hard pulls. Open sky doesn't pull credit. So if you choose them you might as well go ahead and app for another one and just get the one HP. You'll most likely drop a few points with opening up 2 new credit lines, but with keeping UTI down, on time payments, and age you'll see your scores go up. Remember, keep 0 balances on 2 cards and keep <10% UTI on one to maximize your credit score

Re: Question regarding rebuilding

Anonymous — Mon, 13 Mar 2017 23:32:32 GMT

If you reaffirmed your auto loan that counds as in installment loan so there isn't any reason to do a credit builder. If you want, you can but you should look at adding other credit cards. I burnt a lot of lenders as well with my BK. Comenity is very friendly, however I would wait till a little over a month from DC to apply. I would look into the shopping cart trick, or specially with Overstock and see if you can get a card with them since it's a soft pull if done correctly with the SCT. I would sit on the one CC you have, and then maybe try another one in a month or so. I know store cards aren't ideal, but if you can get some that would help.

Re: Question regarding rebuilding

Anonymous — Tue, 14 Mar 2017 05:43:06 GMT

Congrats!

I just want to add.....Comenity/SCT cards can be easy to get, but do not go overboard. Only get one at a store you shop often, but that's really all you need, if that.

Re: Question regarding rebuilding

Anonymous — Tue, 14 Mar 2017 17:44:10 GMT

Capital One will most likely give you a second card.

After that, be on the lookout for any offers you might receive from Merrick Bank. There is an annual fee but they're far from Credit One and I've had a decent experience with them.

I also got my Discover IT card right around a year post discharge. CLI from $2500 to $3500 6 months or so after that.

I only joined NFCU this month and am waiting to apply for their credit products until my cards report March balances, but it definitely sounds like you want to get in with them.

It's okay if this takes some time. Sure you can get your three revolvers all at once now, but I think a lot of folks that are too anxious get stuck with a bunch of lousy low limit store cards.