topic Next Steps in the Rebuild in Bankruptcy

Next Steps in the Rebuild

hoosier64 — Sat, 28 Jan 2023 21:42:45 GMT

I am coming up on 4 months post discharge from Chapter 13.

Current open accounts:

Revolving: Capital One Quicksilver, Mercury, Discover Secured (no annual fees on any of these, practicing AZEO)

Installment: 4 student loans

FICO 8 Scores: 679, 658, 675

FICO 5,4,2 Scores (Mortgage): 685, 707, 704

I'm planning to pay off the student loans in full once the covid pause on payments and interest is over. Next major goal is to purchase a house, but that's probably 3 years out.

1) Is there any difference in rebuild approach to maximize mortgage FICO scores or would I be set with 3 revolving accounts and one open installment loan?

2) Is there a benefit to having an open installment loan for the mortgage FICO scores like there is for the FICO 8?

Re: Next Steps in the Rebuild

TRC_WA — Sun, 29 Jan 2023 16:56:59 GMT

@hoosier64 wrote:
I am coming up on 4 months post discharge from Chapter 13.

1) Is there any difference in rebuild approach to maximize mortgage FICO scores or would I be set with 3 revolving accounts and one open installment loan?

I would think those accounts would be sufficient.

Re: Next Steps in the Rebuild

FireMedic1 — Sun, 29 Jan 2023 22:09:18 GMT

Your go to go. May take a point loss when the installments drop if you have no other loans open. If those are the cards from 4 months ago. Let them grow and scores will age and move slowly up.