topic Re: Would love some guidance, newly discharged BK13 in Bankruptcy

Would love some guidance, newly discharged BK13

Anonymous — Mon, 10 Apr 2017 19:14:36 GMT

My husband and I are approx 1+ month post discharge from our Chap 13. (5 long years)
Ours came about pretty suddenly, within a year or so, so didn't have a lot of collections etc. No chargeoffs, but 2 judgements.
One was AE unfortunately so I know they are off the table for awhile or maybe forever.

I got my scores yesterday, 650 EQ, 612 TU and 606 EX

My husband was unable to get his scores anywhere online. "information does not match what's on file". We've mailed in for his.

I did get a card from Kohls right about the time we filed (not really on purpose, I wanted the % off and figured I'd get declined anyway and I was approved)
It's a 300 limit and I charged on it the full 5 years we were in the plan. (I know, not supposed to but I did) I charged and then paid in full when I got the bill.
This helped some but then again probably didn't because it's showing as a high utilized card even though I pay it off every month I use it. (55% utilization)
***What should I do with this card? Ask for increase or just not use it right now? (btw, I do like this card for the discounts I can get in store so I don't really want to get rid of it)
I just used it this week and have about $30 on the card. That's 10% utilized. Should I let that sit until the bill sends and then pay?
And just continue at that small usage?

I am going to try to follow SM's plan.
Today I applied for my first card since discharge, (I skipped Credit One as noted in some of the posts I read in that thread...because of my score)
I went right to Cap 1 and got approved for the Quicksilver, no AF and a 5K limit.

I plan to get a credit builder loan at Self Lender once I get the card activated per SM. (anyone have experience with them?)

I am going to have my husband do the same once he gets a copy of his report to look it over. I'm hoping we can get it straight so we can monitor his on myfico too.
He's actually gotten several Credit1 pre qualified offers in the mail (I haven't gotten any, I did the prequalitifer at Cap1. My husband also did the pre qualifier and it shows he is pre qualified for the Quicksilver same as I (we haven't followed through yet though))

***Does this sound like a good plan?
***After the CB loan, is my next step to wait 5 months before applying for another card? And should I go ahead and try to get another card at Cap 1 or somewhere else?

Thanks! Any help or advice is greatly appreciated!

Also, meant to add, we would like to refinance our home to a lower rate (and or sell and purchase a less expensive home and at a lower rate). What are the odds of being able to do that?

Re: Would love some guidance, newly discharged BK13

medicgrrl — Mon, 10 Apr 2017 21:08:46 GMT

I didn't follow the plan on here because it seemed more geared towards Ch 7 but is still the same basic concept of what everyone suggests. If you research about paying your credit cards it will explain the reasoning behind how to pay/when to pay. Basically, you want to pay the bill before the statement actually cuts because the statement balance is what most lenders report. Always let 1 card report a small balance of less than 9%. You're off to a great start with the age of the first card and the great starting limit on the second card.

I did the store card & Cap 1 route also. I didn't want to pay the crazy fees of some of the rebuilder cards so I opted to check with my local credit union that I bank with. They were able to give me a Visa with a really great rate. If you have a good relationship with your bank, contact them about your third card.

As far as the rebuilder loan, you have a mortgage so I don't think you need to add another installment loan. Also, because you went with the Ch 13 instead of the 7, you will be able to refinance or purchase a new home sooner. You have the 5 years of making payments to the trustee as part of your payment history, along with the Kohl's card and now the new credit card. I would just work towards improving your credit scores for qualifying.

My 13 discharge was in September. My middle Fico 8 score is currently at 656 (it was a 681 last night but due to the timing of all my credit cards reporting $0 it dropped my score).

The biggest thing to start is making sure that your credit reports are reflecting all of your accounts accurately. Then you will have a better chance at the better credit cards and loans. I got in with Amex last month Yay Read the thread about Bk friendly credit cards. If you find that your hubby is more limited than you, you could always add him as an authorized user on a couple of your cards.

Re: Would love some guidance, newly discharged BK13

Anonymous — Tue, 11 Apr 2017 19:25:33 GMT

Oh, okay, good! I'll loosely follow it then.

And good to know about the installment loan! Thanks!

Congrats on the Amex! I'm sad I messed up with them. My husband was not on those cards so maybe he can get in at a later date.

Anyway, thanks for the advice, much appreciated!

Re: Would love some guidance, newly discharged BK13

medicgrrl — Tue, 11 Apr 2017 23:36:23 GMT

Amex seems to be ok 5 years after file date on Ch 13. If your Amex debt wasn't a huge amount and you want to get back in their good graces, they do allow you to still pay off a debt and buy your way off their blacklist. If you ever decide to go that route just search the forums here.

Best wishes!

Re: Would love some guidance, newly discharged BK13

Anonymous — Thu, 13 Apr 2017 13:26:26 GMT

okay, thank you!