topic Re: start now, or resolve first?? in Bankruptcy

start now, or resolve first??

cjv2192 — Tue, 19 Apr 2022 10:07:03 GMT

hey all, my ch7 discharged 04/08 (filed 12/16/21) - my student loan with perfect history was included in the filing and now I'm waiting for them to restore back to active.

Curious for feedback on whether to start on the apps for the three CCs now, or wait for the loan to be restored to boost credit score and profile first?

Capital One prequal shows Platinum, Quicksilver, Savor One for me already (perhaps due to decent income?) as one example

Well aware this is not a sprint, so not impatient, but wondering if there's much gained by waiting to app

DPs:

587 Exp8 582 Equ8 565 Tra8 (04/18)

666 Exp9 639 Equ9 661 Tra9 (03/23, will update 04/23)

All three CRAs have bk updated as discharged as of today

I have/had no mortgage or car loan before or after bk process

AES (handling student loan) passed my discharge decree to the appropriate department 04/14 and they are saying 7-10biz days to update.

Experian just updated 04/16 reporting the student loan as still in bankruptcy, dropped my Exp 8 from 613 to 603 so it looks like about a month from now at the earliest to get a benefit from updated active status

thoughts?

Re: start now, or resolve first??

EquityinScoresNow22 — Tue, 19 Apr 2022 03:12:02 GMT

Congrats on your DC! I'm no help in terms of waiting to app or not. If/when we get our DC, I plan to wait until 2023 before I apply for anything unless I apply for a card that does not hit your credit profile (I've been researching, there's a few of them). Would not hurt to wait if you have the patience. Slow and steady wins the race! Best!

Re: start now, or resolve first??

FireMedic1 — Tue, 19 Apr 2022 09:13:33 GMT

Congrats. Its best to wait until 30 days after DC. Pull your reports from annualcreditreports.com. Go over them and make sure all accounts say IIB. Wait a couple weeks. Make sure everything is reporting again on the loan. So the installment is covered. Dont need more loans. Unless you need a car. Dont look desparate. Then give Cap1 a try. 1 card every 3 months avg.Once you hit 3 cards. You got the rebuild bonus I say from FICO. You scores will go up some since your no longer legally in debt. Slow and steady wins the race.

Re: start now, or resolve first??

cjv2192 — Tue, 19 Apr 2022 10:12:06 GMT

@EquityinScoresNow22 wrote:
Congrats on your DC! I'm no help in terms of waiting to app or not. If/when we get our DC, I plan to wait until 2023 before I apply for anything unless I apply for a card that does not hit your credit profile (I've been researching, there's a few of them). Would not hurt to wait if you have the patience. Slow and steady wins the race! Best!

Curious what you mean by "does not hit your credit profile"? 🤔

Re: start now, or resolve first??

FireMedic1 — Tue, 19 Apr 2022 10:19:24 GMT

@cjv2192 wrote:
@EquityinScoresNow22 wrote:
Congrats on your DC! I'm no help in terms of waiting to app or not. If/when we get our DC, I plan to wait until 2023 before I apply for anything unless I apply for a card that does not hit your credit profile (I've been researching, there's a few of them). Would not hurt to wait if you have the patience. Slow and steady wins the race! Best!
Curious what you mean by "does not hit your credit profile"? 🤔

Yeah me 2. @EquityinScoresNow22 typo?

Re: start now, or resolve first??

cjv2192 — Tue, 19 Apr 2022 10:27:40 GMT

@FireMedic1 wrote:
Congrats. Its best to wait until 30 days after DC. Pull your reports from annualcreditreports.com. Go over them and make sure all accounts say IIB. Wait a couple weeks. Make sure everything is reporting again on the loan. So the installment is covered. Dont need more loans. Unless you need a car. Dont look desparate. Then give Cap1 a try. 1 card every 3 months avg.Once you hit 3 cards. You got the rebuild bonus I say from FICO. You scores will go up some since your no longer legally in debt. Slow and steady wins the race.

Good stuff here, thanks @FireMedic1

Re: start now, or resolve first??

EquityinScoresNow22 — Tue, 19 Apr 2022 14:18:30 GMT

I think a couple of the new fintech companies qualify you differently than the traditional banks. I believe one such company is credit.ai. They use blockchain to determine your creditworthiness and thus you don't get a hard inquiry on your credit profile. I'm still educating myself on it but I think I'm in the ballpark with how I'm describing them. Hopefully someone who knows more about it than myself (or have actually applied) will chime in. Best!

Re: start now, or resolve first??

FireMedic1 — Tue, 19 Apr 2022 21:29:43 GMT

@cjv2192 wrote:
@FireMedic1 wrote:
Congrats. Its best to wait until 30 days after DC. Pull your reports from annualcreditreports.com. Go over them and make sure all accounts say IIB. Wait a couple weeks. Make sure everything is reporting again on the loan. So the installment is covered. Dont need more loans. Unless you need a car. Dont look desparate. Then give Cap1 a try. 1 card every 3 months avg.Once you hit 3 cards. You got the rebuild bonus I say from FICO. You scores will go up some since your no longer legally in debt. Slow and steady wins the race.
Good stuff here, thanks @FireMedic1

@cjv2192Thats how I started. 3 cards and a loan. Then let it ride. Had a car loan. Then had to go with a SSL cause I paid it off. Once I hit 700 I went for another card. Slight drop. Wait for 700 again. Which wasnt long. Next card. I used 700-710 as my time for the next card when it rebounded. Then in time the base was 720-730. The rest were easier. Then I was at 750's. But went with the new ride and 3 accounts in a week 11 months ago I believe. And PENFED in Jan. So heres were I sit (see below) till they age. Took 6+ yrs total. But worth it. Too many think it will happen in a year. Takes a bit more time. Just be patient. Work the system. It will come along.

Re: start now, or resolve first??

cjv2192 — Tue, 10 May 2022 22:24:23 GMT

As an update to this, my AES/Truist student loan account is now back to active and current, first payment due end of this (May) month. Looking at past threads about them, they update CRAs end of the month.

I ran my annualcreditreport (they extended free weekly pulls til the end of the year BTW...) 05/04 and

Equifax is still reporting as Closed/IIB; last reported 03/31
Experian is reporting Status: Open/Never late. Deferred, payments begin Oct 2022; updated 03/31
Transunion reporting in "Accounts with Adverse Info" Pay Status: Current; Paid or Paying as Agreed with remark "Chap 7 Bankr; Payment Deferred"; updated 03/31

Since I can pull acr again tomorrow and each week following, I can track when April status is submitted, but looks like I missed the window to have the student loan reporting as current and paying on all reports until at least a couple weeks into June.

So, I continue to wait to app for the first card. thanks again @FireMedic1 - you really helped keep in perspective.

Re: start now, or resolve first??

FireMedic1 — Tue, 10 May 2022 22:45:37 GMT

@cjv2192 wrote:
As an update to this, my AES/Truist student loan account is now back to active and current, first payment due end of this (May) month. Looking at past threads about them, they update CRAs end of the month.

I ran my annualcreditreport (they extended free weekly pulls til the end of the year BTW...) 05/04 and
Equifax is still reporting as Closed/IIB; last reported 03/31
Experian is reporting Status: Open/Never late. Deferred, payments begin Oct 2022; updated 03/31
Transunion reporting in "Accounts with Adverse Info" Pay Status: Current; Paid or Paying as Agreed with remark "Chap 7 Bankr; Payment Deferred"; updated 03/31
Since I can pull acr again tomorrow and each week following, I can track when April status is submitted, but looks like I missed the window to have the student loan reporting as current and paying on all reports until at least a couple weeks into June.

So, I continue to wait to app for the first card. thanks again @FireMedic1 - you really helped keep in perspective.

Your welcome @cjv2192 . Were here to help each other as they did for me. Just paying it forward. Let us know how it goes once it updates!

Re: start now, or resolve first??

cjv2192 — Wed, 11 May 2022 22:11:25 GMT

now I'm curious; ran annualcreditreport again today - the student loan is now active on all three CRAs, reporting as deferred from 04/30. No longer an adverse account like those IIB - would there be a difference now with all three showing deferred status as opposed to a month from now when the account would no longer be recorded in the CRAs as deferred, but simply paid as agreed? thoughts?

Re: start now, or resolve first??

FireMedic1 — Wed, 11 May 2022 23:19:36 GMT

Have you got the score changes yet with the new SL status?

Re: start now, or resolve first??

cjv2192 — Wed, 11 May 2022 23:28:16 GMT

My FICOs update on the 24th or 25th. Penfed should have an equifax 9 monthly update for me tomorrow or following day and wells fargo experian 9 on the 15th. Will update!

Re: start now, or resolve first??

cjv2192 — Thu, 12 May 2022 21:16:50 GMT

First fico update! Deferred status, still positive. I'll update next month if the first payment adds anything

Re: start now, or resolve first??

cjv2192 — Thu, 12 May 2022 21:23:27 GMT

Should mention I noticed through Experian's free monitoring 04/16 is when AES sent their update to Experian saying the account was IIB. So I'm expecting that one to be the last of the three to update their score

Re: start now, or resolve first??

cjv2192 — Fri, 13 May 2022 05:15:44 GMT

Transunion bump

Re: start now, or resolve first??

cjv2192 — Wed, 25 May 2022 15:58:49 GMT

more updates, and a couple DPs:

05/18 I looked at my Experian report and thought my student loan updated completely to Open/Never Late since that's what I saw on the report from annualcreditreport (it had that status but still was showing deferred)

soooo.... I took a stab at Dover's 2% CB card. Website prequaled me at $20k (lol) like most of the others - I figured I'd give it a shot to see what it would come back at. That's my first Experian inquiry on my report, so not the end of the world. Uploaded POI, etc like others have mentioned here, and it sat in review with the UWs.

Counteroffer just came back yesterday at $2,000. UWs assumed I was going to make a $2k payment with the card to my student loan balance, with makes no sense whatsoever. I asked them to update my file to see if removing the association with my completely separate student loan would change things.

I'm thinking to take the counteroffer to start the relationship with them, especially since I applied one month out of DC. I confirmed any CLI will be a hard pull, but no different from Penfed who I plan to apply for my third card in a few months from now.

As of 05/23:

Exp 8: 603 9: 651

Equ 8: 619 9: 610

Tra 8: 600 9: 685

Still curious to see whether I'll get bumps for my student loan moving out of deferred status the end of this month, along with a payment 10% of the overall balance disbursed by the trustee in my BK case already credited to my AES student loan account.

That just leaves the story for my second card Once I got the counteroffer from Dover, I went back to Capital One's prequal. Platinum, Quicksilver, and Savor have been the result since just before my DC beginning April. Approved for Savor, $3,000!!

Happy so far, happy also to wait for a Penfed card in 3-4months - or however long it takes for my Equifax scores to top 680ish. @FireMedic1 not exactly how you laid it out, but I figured whatever Dover would offer to me would be a good starting point.

I'd prefer to keep my Experian inquiries at 2 (Dover and Capital One) for 6-12 months, so if anything, I'd need to find those who would pull Equifax or Transunion. Unfortunately Barclay, Discover, and Synchrony were IIB

What do you think??

Re: start now, or resolve first??

cjv2192 — Wed, 25 May 2022 16:43:54 GMT

apologies if I should have created a new topic with the CC approvals

Re: start now, or resolve first??

FireMedic1 — Wed, 25 May 2022 18:27:55 GMT

@cjv2192Congrats! I never say or mean do it my way. None of us match file-wise. I just place suggestions on what I've learned on here and what others have said and done to get to a certain card they want. No one matches reports. Its a combined suggestion from many examples I've read and learned and the possibilities of being successful. Yeah go over to approvals and post your success. Thats what its there for. You earned it!!!!!!!! Booyah!

Re: start now, or resolve first??

cjv2192 — Wed, 25 May 2022 18:32:36 GMT

Understood it was merely guidance offered, but it is sound advice!