topic Re: 2 Days Post CH7 Discharge - My starting point and a few questions in Bankruptcy

2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Fri, 16 Dec 2022 23:56:49 GMT

Hi. I had my CH7 discharged a couple days ago. My Experian FICO 8 jumped 36 points to 676 when the discharge was reported. I opened several CCs after the first creditors meeting and have two AUs reporting. My auto loan was reaffirmed, awaiting the lender to (hopefully) report that trade again.

I burned nearly every creditor under the sun in the BK. Penfed, Amex, Barclay US Bank, NavyFCU, Patelco, USAA, BofA, Wells, Discover, Capital One, Alliant, and a few others I can't think of right now.

Capital One let me back in with a 3K Quicksilver. Upgrade Card with 3K line. I have Ollo for $500 and Mission Lane for $750. Rent reporting for the last three years and a few other self-reported accounts. Experian reports 7 Year AAOA. 3% Util. I PIF every month. I have >200K in documented W2 income.

I read most of the rebuilding and BK-related threads I could.

I aim to have at least one card with a 10-15K line and 720 FICO. Rewards preferred over rate as I PIF.

I seek recommendations on the steps I need to take to reach my goal. I understand patience is my friend.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

Jnbmom — Sat, 17 Dec 2022 01:27:10 GMT

You filed a Chap 7 with a 200K income?

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Sat, 17 Dec 2022 01:31:47 GMT

No. Also. the income test didn't apply because majority of personally guaranteed debt was from a business.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

Guyatthebeach — Sat, 17 Dec 2022 04:32:18 GMT

843dk5u39mcf,

Welcome to the forum! Given the cards you already have, I would hold off on applying for any additional cards, until month 7 post bankruptcy. I would follow up regularly on making sure your car loan reports on all your CR's. If it doesn't, I would look into getting a secured installment loan to improve your credit mix.

You indicated you want a $10-15k card. That make not be achievable until after years 2 and 3 post bankruptcy. I would give a local or regional bank that does their own credit card underwriting a hard look. The same thing for a local credit union. Given the number of banks and CU's IIB, you will have to find local or regional banks/CU's. You're goals are achievable, it's just going to include some patience.

Guyatthebeach

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

FireMedic1 — Sat, 17 Dec 2022 10:15:42 GMT

@843dk5u39mcf wrote:
Hi. I had my CH7 discharged a couple days ago. My Experian FICO 8 jumped 36 points to 676 when the discharge was reported. I opened several CCs after the first creditors meeting and have two AUs reporting. My auto loan was reaffirmed, awaiting the lender to (hopefully) report that trade again.

I burned nearly every creditor under the sun in the BK. Penfed, Amex, Barclay US Bank, NavyFCU, Patelco, USAA, BofA, Wells, Discover, Capital One, Alliant, and a few others I can't think of right now.

Capital One let me back in with a 3K Quicksilver. Upgrade Card with 3K line. I have Ollo for $500 and Mission Lane for $750. Rent reporting for the last three years and a few other self-reported accounts. Experian reports 7 Year AAOA. 3% Util. I PIF every month. I have >200K in documented W2 income.

I read most of the rebuilding and BK-related threads I could.

I aim to have at least one card with a 10-15K line and 720 FICO. Rewards preferred over rate as I PIF.

I seek recommendations on the steps I need to take to reach my goal. I understand patience is my friend.

Congrats on the DC. You say several cards but list 3. Here goes. You have the 3 cards and a loan to satisy FICO for now. No more apps until your in the 700 range which will take a year or more. Keep applying in the 600's. You'll stay in the 600's. The AU's isnt a quick fix. Most lenders ignore them when apping. I keep using @IamWesty12 is a perfect example. She did it the right way. As myself it took a couple yrs. Below took 6 yrs. Time to garden and let what you have now age. Once past 700 then 1 at a time spread out. Many have come on here grabbing anyone who approves before DC and even after. Its a marathon and not a race. 720 if played right. 3+yrs.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

twono — Sat, 17 Dec 2022 13:53:14 GMT

@FireMedic1 wrote:
@843dk5u39mcf wrote:
Hi. I had my CH7 discharged a couple days ago. My Experian FICO 8 jumped 36 points to 676 when the discharge was reported. I opened several CCs after the first creditors meeting and have two AUs reporting. My auto loan was reaffirmed, awaiting the lender to (hopefully) report that trade again.

I burned nearly every creditor under the sun in the BK. Penfed, Amex, Barclay US Bank, NavyFCU, Patelco, USAA, BofA, Wells, Discover, Capital One, Alliant, and a few others I can't think of right now.

Capital One let me back in with a 3K Quicksilver. Upgrade Card with 3K line. I have Ollo for $500 and Mission Lane for $750. Rent reporting for the last three years and a few other self-reported accounts. Experian reports 7 Year AAOA. 3% Util. I PIF every month. I have >200K in documented W2 income.

I read most of the rebuilding and BK-related threads I could.

I aim to have at least one card with a 10-15K line and 720 FICO. Rewards preferred over rate as I PIF.

I seek recommendations on the steps I need to take to reach my goal. I understand patience is my friend.
Congrats on the DC. You say several cards but list 3. Here goes. You have the 3 cards and a loan to satisy FICO for now. No more apps until your in the 700 range which will take a year or more. KEEP APPLYING IN THE 600's, YOU'LL STAY IN THE 600's.. The AU's isnt a quick fix. Most lenders ignore them when apping. I keep using @IamWesty12 is a perfect example. She did it the right way. As myself it took a couple yrs. Below took 6 yrs. Time to garden and let what you have now age. Once past 700 then 1 at a time spread out. Many have come on here grabbing anyone who approves before DC and even after. Its a marathon and not a race. 720 if played right. 3+yrs.

I can attest to that....I got 3 new cards 45-60 days post DC....I waited for everything to report correctly and let my reports 'settle' down before I app'd for anything. My KOHLS survived BK....14 mos after DC, i was approved for an RV loan ($20k) with my CU.....28 mos after DC, i was approved for a new motorcycle ($14k).....32 mos after DC i got 2 more small CC, which looking back was a mistake.

So I have 6 CC's and 2 installment loans: I am 38 mos post DC and my current FICO 08's are TU 662, EQ 673, EX 683. INQ's are TU 3, EQ 0, EX 1. Utilization around 9%. Those 2 CC's 6 months ago really hurt my AAoA. Big mistake on my part and I knew better.

I'm not applying for chit. Gonna get down to 0 INQ's and 2% utilization before I even think about applying for higher limit card(s).

Not to be a ball-swinger, but listen to Firemedic.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

Jnbmom — Sat, 17 Dec 2022 14:11:35 GMT

Also any newbies reading this thread WAIT until after your dc before applying . You never want to risk your DC and after your DC and your reports have updated and everything is reporting correctly you will get a little bump which might get you better starter cards. We can't stress this enough, yes I know others don't wait and rush after filing but it's always best to wait. It's not a sprint it's a marathon .

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Sat, 17 Dec 2022 16:48:51 GMT

Some attorneys I reviewed suggested that applying for credit is OK after the first CH7 creditors meeting. However, as JNBMOM suggested, the safest option is to wait until discharge.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Sat, 17 Dec 2022 16:54:14 GMT

Hi FireMedic1,

I appreciate the candid advice—no new apps until I'm in the 700s.

It'll be interesting to see how the updated reporting of my auto loan will impact my scores.

Pulled 12/17 FICO 8 for TU and EX, 650 and 629, respectively. The delta between EX could be explained by more INQs on TU and EX hasn't updated with the discharge + I have a split file.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Sat, 17 Dec 2022 17:00:58 GMT

Hi twono,

Quite a journey. I appreciate you sharing! Thanks for restating key advice. No more apps until I'm in the 700 club. .

In retrospect I would not have app'd for Mission Lane or Ollo so early. The tiny limits are nearly useless. I have subscriptions being paid to them and auto PIF for usage.

I'm hoping CapOne gives me a nice CLI in a few months with a SP since I run 1.5x of the 3K limit on the card each month.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

twono — Sat, 17 Dec 2022 18:02:52 GMT

@843dk5u39mcf wrote:
Hi FireMedic1,

I appreciate the candid advice—no new apps until I'm in the 700s.

It'll be interesting to see how the updated reporting of my auto loan will impact my scores.

Pulled 12/17 FICO 8 for TU and EX, 650 and 629, respectively. The delta between EX could be explained by more INQs on TU and EX hasn't updated with the discharge + I have a split file.

-Inq's are only 2 pts maybe 3 and IIRC , they are in buckets.....1-3, 4-7 etc....They stay on your reports for 2 yrs and do not affect your score after 1 year, which is only a point or two which is negligible.

Difference in scores could be your oldest acct isn't reporting on 1 of your reports. Could be a slew of reasons for different scores...Keep in mind, all 3 credit bureaus rarely have the same information.

I know my AAoA and other info is different on my 3 CRA's reports. I have a DCU CC with a $10k limit that is reporting open on TU but not on the other reports. I also just had a PENFED acct updated to 'closed' last week on TU. Those accts were include in my BK.

Your credit file changes by the minute. Just keep that in mind.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

twono — Sat, 17 Dec 2022 18:06:26 GMT

@843dk5u39mcf wrote:
Some attorneys I reviewed suggested that applying for credit is OK after the first CH7 creditors meeting. However, as JNBMOM suggested, the safest option is to wait until discharge.

Just remember that attorneys are not credit experts. My BK7 attorney cost $4k but was also a trustee. I took their advice pertaining to the BK itself, but no credit advice was asked for or offered.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

hoosier64 — Sun, 18 Dec 2022 04:16:33 GMT

@FireMedic1 @twono I don't want to derail the thread, but could you provide a little more explanation for why continuing to apply in the 600's will keep you in the 600's? Is it AAoA or HP's?

The reason I'm asking is that my oldest tradeline prior to BK may fall off in a year. My AAoA is going to drop quite a bit once that tradeline falls off, and I will need to replace my vehicle at some point in the next few years.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

FireMedic1 — Sun, 18 Dec 2022 10:52:03 GMT

Your not derailing your own thread. You apply and get approved. Here comes all the age metric/new account hits. Takes time to rebound. Once they age. Up go the scores. Keep applying and it never has a chance to age and let the smoke clear. 600's. As time goes on your base score will go up. I did it this way. Got what was needed to start. Once you hit 700 it opens a whole new world. I used 700 as a base score. Once there. Next card. Drop a bit into the 600's. Bounce back in the 700's. Read my hind end off for what could be next. Approved. In time the base score was 710. Then 720's and off it went. I have the info below for one reason. Been there done that. I went 19 and 1. Slow and steady wins the race.

Too many come on here I got 10 cards out of BK and hit 680! Ok. Low CL's high APR's. I want to buy a house. Facepalm. Basically. Higher the scores. Easier to get better quality cards. Lower APR's/Interest. I stayed on here to help others as they did for me. Pay it forward. Plus it does get boring at times in the FD. Take your time. You'll get there. We'll help you.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

RobynJ — Sun, 18 Dec 2022 12:51:01 GMT

@843dk5u39mcf wrote:
Hi twono,

Quite a journey. I appreciate you sharing! Thanks for restating key advice. No more apps until I'm in the 700 club. .

In retrospect I would not have app'd for Mission Lane or Ollo so early. The tiny limits are nearly useless. I have subscriptions being paid to them and auto PIF for usage.

I'm hoping CapOne gives me a nice CLI in a few months with a SP since I run 1.5x of the 3K limit on the card each month.

Cap One and CLI is not where I would put my wishes. You probably have a better chance with Mission lane.

Re: 2 Days Post CH7 Discharge - My starting point and a few questions

843dk5u39mcf — Sun, 18 Dec 2022 16:19:29 GMT

Hey RobynJ,

Thanks for weighing in on my scenario. Can you please elaborate on Mission Lane and why it may be a better choice than CapOne for my goals?

@RobynJ wrote:
@843dk5u39mcf wrote:
Hi twono,

Quite a journey. I appreciate you sharing! Thanks for restating key advice. No more apps until I'm in the 700 club. .

In retrospect I would not have app'd for Mission Lane or Ollo so early. The tiny limits are nearly useless. I have subscriptions being paid to them and auto PIF for usage.

I'm hoping CapOne gives me a nice CLI in a few months with a SP since I run 1.5x of the 3K limit on the card each month.
Cap One and CLI is not where I would put my wishes. You probably have a better chance with Mission lane.