topic Re: What should I do next. in Bankruptcy

What should I do next.

kr43002 — Fri, 23 Jul 2021 02:09:23 GMT

So I know that rebuilding is a marathon, not a race, and that in the grand scheme of things, I am fresh out of bk.

I was discharged in May. My Scores from the experian app, show 581-593 Currently.

Currently I have a One Main Loan for $1575 with 36% APR, I have $1000 of that left in cash, that I do not plan on using for credit repair as that is now my emergency fund. I know it has high APR, so paying it down is the best thing for interest, and I plan on paying it half way down after it reports.

I also have a First Premier CC, with a $30 balance of $400 Limit. Its basically been sock drawered, but I still plan on dusting it off once a month and put a tank of gas or something trivial on it so it keeps reporting.

I also have a Nrewards card with a $300 Limit on it. It hasn't reported yet, and I believe it will take a couple of months. This is my daily driver, because of the cash back on it. I have been paying it off weekly, and I try and keep it under a $200 Balance, and I will not let it report with a high balance, I just have to figure out its reporting date.

My question really is where do I go from here. I would like to follow the 4 revolver / 1 Installment. I am wanting to snag 3 cards in the next year. I am okay with a Secured card, as long as it doesn't have an annual fee, I still don't quite trust myself with credit so if it doesn't unsecure, I am okay with it.

After my Nrewards Unsecures, I plan on moving one of my Direct Deposits to a local Credit union and start building a relation with them. That should fill one of my 3 cards. Any other suggestions?

Re: What should I do next.

FireMedic1 — Fri, 23 Jul 2021 10:00:57 GMT

It really depends on who got burned. You really only need 3 revolvers and 1 loan for the FICO bonus per say. List who got burned and this will help where to turn to. I see you said you just got 1 new account. Spread them out at least 4-6 months with apps. Dont rush it. So list the creditors who got the ax and we can go from there.

Re: What should I do next.

kr43002 — Sat, 24 Jul 2021 01:31:51 GMT

I burned

*Discover

*Capital One

*USAA

*Synchrony

*Celtic Bank

*Bank of Missouri

*Klarna

And a local credit union

Re: What should I do next.

Horseshoez — Sun, 25 Jul 2021 02:12:07 GMT

@kr43002 wrote:
I burned
*Discover
*Capital One
*USAA
*Synchrony
*Celtic Bank
*Bank of Missouri
*Klarna
And a local credit union

For unsecured, I'd look at CapitalOne (yes, I understand you burned them, but they are well known for being forgiving), and PenFed. If you're looking at secured cards, I've heard good things about FNBO's card.

Re: What should I do next.

kr43002 — Sun, 25 Jul 2021 07:39:53 GMT

@Horseshoez I will look at FNBO, Capital One is still not interested in me yet, but I am sure time will change that. Thank you.

Re: What should I do next.

SB_F — Sun, 25 Jul 2021 18:02:06 GMT

I am a firm believer in the $1000 emergency fund with no exceptions ... except in your case.

Join a credit union and open an installment loan for $1000. Take that $1000 and pay it against the 36% loan. Then rebuild your emergency fund as quickly as possible. The cash back you are chasing will likely never overcome what you are paying that account in interest. Plus paying it down will reduce your utilization dramatically. THAT will help boost your score. If you do have an emergency, charge as little as possible to resolve the problem. You need that money you are paying for 36% interest to go to your benefit, not theirs.

And no matter what, make all of your payments on time.

Re: What should I do next.

kr43002 — Mon, 26 Jul 2021 05:09:30 GMT

@SB_F I don't plan on carrying a balance above $20 on that card. My second job has me driving, and I get gas reimbursement once a week, so that $200 maximum is 80% gas. not really chasing rewards, just making use of them. if you pay in full your not paying any interest, and I pay my balance weekly so there isnt any interest charge. the account hasn't even posted. my current util shows 0% on the experian app.

I would use that grand but I am okay with paying that interest as It will be paid off before decemeber, meaning im paying less than $200 for this kind of stability. I am have done the math behind it and I am okay with this. If I were planning on just making minimum payments, I would definitely use the emergency fund for the loan.

Re: What should I do next.

kr43002 — Mon, 26 Jul 2021 05:12:40 GMT

@SB_F wrote:Join a credit union and open an installment loan for $1000. Take that $1000 and pay it against the 36% loan.

I was denied membership to a credit union last week citing recent bk and credit score to low. They want to see atleast 620, the only other one near me wants to charge me $25/month to have an account with them. I dont qualify for their free checking because of my bankruptcy aswell. im just stuck with nfcu for now, which is honestly a ok

Re: What should I do next.

Guyatthebeach — Mon, 26 Jul 2021 06:45:02 GMT

Kr43002,

Actually you are in a decent place since you're bankruptcy discharged in May. I would let your current cards age and when your CR reports 6 months of positive payment history, try Capital One and Discover Card for preapprovals. I would continue to build your emergency funds.

Try to get that loan with One Main paid off as soon as possible because that is a lot of interest to pay. If you can, try to make 2 payments a month. The first should be your monthly minimum payment and the second payment should go only toward the principle.

With Navy Federal, do what you can to build your relationship with them. They like seeing their card and accounts being utilized. I would open an easy start CD and just add $10 a month or whatever you feel comfortable with. With your credit card, try to limit your payments to 2 payments every billing cycle. When your statement cuts, go on and make the minimum payment and then on your payment due date, pay it down to whatever you want. NFCU has a history of graduating secured cards anywhere from 6 months to 18 months from the date the account was open. The day you secured card graduates, I would check for a preapproval for another card and apply for it. If you have a checking account with them, I would also use the debit card as much as possible.

Just keep doing what you're doing. You will bounce back sooner than you think.

Guyatthebeach

Re: What should I do next.

kr43002 — Mon, 26 Jul 2021 10:51:52 GMT

After browsing Youtube i found you can have multiple secured cards opened with NFCU. would it be wise to open a second card with them?

Side note I just looked into their easy cd's and I am definitely going to open a Special Easy CD with their 3% APR for 12 months, thank you for showing me that wonderful gem

Re: What should I do next.

FireMedic1 — Mon, 26 Jul 2021 16:08:02 GMT

Forget You Tube. So much inaccurate info. Just like how to get your BK off your report videos. Yeah right. You can get the OpenSky no HP card to hit your 3rd card. Pay down the One Main loan to <8% and make the payments until its paid and then your points will climb. Then save over $3000 in NFCU savings and apply for the SSL once the other loan runs out. You dont want to be loan-less. That costs you a ton of points. Otherwise you doing great.

Re: What should I do next.

kr43002 — Tue, 27 Jul 2021 00:44:28 GMT

@FireMedic1 wrote:
Forget You Tube. So much inaccurate info. Just like how to get your BK off your report videos. Yeah right. You can get the OpenSky no HP card to hit your 3rd card. Pay down the One Main loan to <8% and make the payments until its paid and then your points will climb. Then save over $3000 in NFCU savings and apply for the SSL once the other loan runs out. You dont want to be loan-less. That costs you a ton of points. Otherwise you doing great.

When the Loan is finished I plan on replacing it with a cheaper vehicle. When I get it down to ~8% instead of paying above minimum i am just going to put the excess income into savings for a Down payment.

I don't want to snag another Annual Fee Card, I am going to be replacing the First Premier before the AF hits and would rather not have another account like that affect AAoA. But I would go after the OpenSky if I hadn't already gotten the First Premier Card. From the Youtube video, he had 2 cards in his dashboard, so I am actually curious if that is something available. They allow you upto 3 Credit Cards if Im not mistaken, so unless they have specific rules about the nRewards, it should be feasable. I am just unsure if it will have a negative impact having 2 cards from the Same Lender.

Re: What should I do next.

FireMedic1 — Sun, 01 Aug 2021 00:01:01 GMT

FICO doent care who the lender is. Nor the credit limit. So lenders names doesnt bother FICO. Its how its reported each month. The goal is 3 cards so when 1 reports a balance of <8.99% your under the 50% of total cards reporting a balance. Thats what FICO likes. AZEO as we say. All zero except 1. With 2 cards your right at the 50% mark. Never have the 2 cards report a balance or report no balance. Have one report 10 bucks then PIF. Good thinking on savings. As long as the loan is still pen under 8% thats a win. Once you go loan-less. There goes 20+ points. So keep it open. Once the other loan is done. Then pay it off. You'll still lose a small amount of points from the new loan account. but not as much as having no loans reporting. Good Luck!

Re: What should I do next.

kr43002 — Tue, 03 Aug 2021 15:26:16 GMT

@FireMedic1 wrote:
FICO doent care who the lender is. Nor the credit limit. So lenders names doesnt bother FICO. Its how its reported each month. The goal is 3 cards so when 1 reports a balance of <8.99% your under the 50% of total cards reporting a balance. Thats what FICO likes. AZEO as we say. All zero except 1. With 2 cards your right at the 50% mark. Never have the 2 cards report a balance or report no balance. Have one report 10 bucks then PIF. Good thinking on savings. As long as the loan is still pen under 8% thats a win. Once you go loan-less. There goes 20+ points. So keep it open. Once the other loan is done. Then pay it off. You'll still lose a small amount of points from the new loan account. but not as much as having no loans reporting. Good Luck!

What you said about loans is completely correct. I had closed a Self Loan because I wanted to use the monthly money elsewhere, and having no loans dropped my score from 607 to 578, then the new loan reported and brought it back up to 601. So having a loan is important lol