topic Re: Post discharge Guidance in Bankruptcy

Post discharge Guidance

digitalakers — Thu, 05 Jan 2023 16:29:47 GMT

Hello myfico, been lurking for about 6 months now. Started following this forum when I knew my post divorce was sending me towards bankruptcy. Long story short, I'm officially discharged and started my rebuilding phase. All 3 reports are correct so I went ahead and app for 2 ccs

I responded to mission lane mailer and got approved for $3k

both Experian and CK kept throwing ally Mastercard so I took the bait and got approved for $1k. I know the rule of thumb is 3 ccs and 1 loan. I'm thinking of opening up a credit builder loan with my CU. $1k for 12 months. Receive funds once last payment is made. Would that be a good option ? Also what other card do you guys recommend as my third?

I Burned most major :

Chase

discover

citi

cap 1

target/td bank

Apple

upgrade

my Samsung store credit survived but they reduced my credit limit to $500 :/ lol. Thanks in advance

Re: Post discharge Guidance

hoosier64 — Thu, 05 Jan 2023 17:52:28 GMT

Capital One let me back in immediately after discharge, but others have had to wait a little bit to get back in with them.

The other cards I was approved for are Discover it secured and Mercury. I didn't burn either of them in bankruptcy.

Discover and Capital One both have pre-approval sites.

Re: Post discharge Guidance

DogwoodLynx — Thu, 05 Jan 2023 21:29:09 GMT

Navy Federal - secured card graduates.

OpenSky - its secured, does not graduate but it serves it purpose.

I don't know what the rest of your credit report looks like but it may be worth it to hold off a few months before applying for something else to see if you can get back in with Disco or Cap1.

For example, I have the two lines of credit in my siggy. I also have some things that are suppose to drop off in March and I'm going to get my utilization down below 30%, so I am going to hold off and app for Navy Federal in April or May.

Re: Post discharge Guidance

Horseshoez — Thu, 05 Jan 2023 21:34:33 GMT

@digitalakers, hands down, go with an unsecured CapOne card; they're super forgiving even if burned.

Re: Post discharge Guidance

digitalakers — Thu, 05 Jan 2023 22:38:43 GMT

@hoosier64 wrote:
Capital One let me back in immediately after discharge, but others have had to wait a little bit to get back in with them.

The other cards I was approved for are Discover it secured and Mercury. I didn't burn either of them in bankruptcy.

Discover and Capital One both have pre-approval sites.

for what its worth i only burned cap1 with a few hundred so im going to try the pre approval site. Thanks and @Horseshoez i will definitely try to get on cap1 good grace again

Re: Post discharge Guidance

digitalakers — Thu, 05 Jan 2023 22:43:05 GMT

@DogwoodLynx wrote:
Navy Federal - secured card graduates.
OpenSky - its secured, does not graduate but it serves it purpose.

I don't know what the rest of your credit report looks like but it may be worth it to hold off a few months before applying for something else to see if you can get back in with Disco or Cap1.

For example, I have the two lines of credit in my siggy. I also have some things that are suppose to drop off in March and I'm going to get my utilization down below 30%, so I am going to hold off and app for Navy Federal in April or May.

well so far i havent used any card yet. Ive been meaning to add netflix to one and use the other for small purchases. What i will look into is the CU loan to get that credit mix little bump. As for waiting a month, i was thinking the same and maybe help me get something better.

Re: Post discharge Guidance

Guyatthebeach — Fri, 06 Jan 2023 03:02:22 GMT

digitalakers,

Welcome and congratulations on the approvals with Ally and Mission Lane. If your Samsung card reports to your CR's, I would hold off on adding another CC until month 7 of your rebuild. You can use that Samsung card as part of your rebuild. I know store cards aren't in the popular opinion for rebuilds, but as long as you're letting the balance report at 10% or less, and you're paying it in full every month, you're going to be fine. Remember at this stage of your rebuild, you are working to adding positive tradelines with positive payment history. Since you already were approved for unsecured cards, I would stay away from secured cards, unless they will graduate to unsecured cards.

I would definitely look at a rebuilder loan with a 12 month term. At month 7, I would check CapitalOne, Discover, and Target for pre approvals once a month. They will let you back in at some point.

Keep us informed on your progress.

Guyatthebeach

Re: Post discharge Guidance

digitalakers — Fri, 06 Jan 2023 13:10:38 GMT

Thank you for the sound advice. Yes, Samsung is reporting because I see it show "on time" and getting updated monthly. I will count that towards my goal then. As for the loan I will apply within the week. On their site it says no credit check at all so that's good!

Let's just see when capital 1 will open the door again.

Re: Post discharge Guidance

Lurker22 — Fri, 06 Jan 2023 13:41:23 GMT

4 days after my Chapter 13 was discharged CapOne gave me $10K CL, so I'd go there next, if you need to go a secured route you might consider USB - they offer 2 with cash back (Cash + and Altitude GO)

Re: Post discharge Guidance

digitalakers — Fri, 06 Jan 2023 16:40:25 GMT

@Lurker22 wrote:
4 days after my Chapter 13 was discharged CapOne gave me $10K CL, so I'd go there next, if you need to go a secured route you might consider USB - they offer 2 with cash back (Cash + and Altitude GO)

It's been a month and I tried yesterday and didn't see any pre approval products. I'll wait another month or so and try again. I'll probably hold off for now until then.

Re: Post discharge Guidance

digitalakers — Mon, 20 Feb 2023 22:52:55 GMT

Good afternoon, just a small update. Everything was going smooth in my rebuild and gardening up until two days ago. Discover, which I burned, updated their status to the CRA’s to 150+ days late and removed my IIB remark on all 3 credit bureaus. Under TransUnion it even states as Open and reappeared on my report. This tanked my fico scores. FYI I was discharged 12/22. I have already disputed for accuracy on all 3 reports. I even went ahead and filed a complaint with cfpb since it’s not the 1st time it’s updated. Any other steps I should follow? I have not contacted the creditor directly. Should I? Thanks !

Good afternoon, just a small update. Everything was going smooth in my rebuild and gardening up until two days ago. Discover, which I burned, updated their status to the CRA’s to 150+ days late and removed my IIB remark on all 3 credit bureaus. Under TransUnion it even states as Open and reappeared on my report. This tanked my fico scores. FYI I was discharged 12/22. I have already disputed for accuracy on all 3 reports. I even went ahead and filed a complaint with cfpb since it’s not the 1st time it’s updated. Any other steps I should follow? I have not contacted the creditor directly. Should I? Thanks !

Re: Post discharge Guidance

FireMedic1 — Tue, 21 Feb 2023 09:41:42 GMT

Contact your lawyer. No negative info can be placed on your report. Its against BK laws. They'll send a letter and if it isnt removed. They can be fined for $1000 and lawyer fees which will go to you.