topic Re: Making sure.. in Rebuilding Your Credit

Running rebuild thread from BK7 in 07/2012

Scupra — Thu, 28 Aug 2014 20:30:46 GMT

I have my goals set and am working towards them. I wanted to share my thoughts and see if I am doing the correct thing to rebuild. Thanks in advance for taking the time to read and the help I'm sure I'll get.

I filed chap7 bk in 7/2012 and it was discharged in 10/2012 My long term goal is to get an FHA loan in two years. Everything is reporting correctly on my reports and I have done a little work to clean up. I got 5 medical collection accounts off of my TU and EQ, they still remain on EX. The rest of my baddies are set to fall off 2014 and 2015, which is when I plan to app for an FHA loan.

On 7/2012 I opened a checking and savings with NFCU after reading how good they are to have a realtionship. 10/2012 I opened a $500 secured card with NFCU hoping it will graduate in a year, fingers crossed. The other card I had was a Cap1 $500 unsecured card I obtained in 2005 that I was trying to keep through the bk, unfortunatley they closed it and had me open a new card. That card is a Cap1 $500 unsecured card in the credit steps program. The old card was only 30 day late two times in the 7yr history. Other then that I have two satisfactory car loans, never late and the 7 accounts that are iibk.

I was planning to garden until 10/2013 at which point I will app for Barclays. Hopefully at this point the NFCU card will graduate, if not I was thinking on apping for an unsecured card because I will be one year post bk. Somewhere in the mix I would like to add a Walmart card if possible, not sure on how they wil treat the bk (I did not include them in bk) Around my app spree I was also planning to add an auto loan for around $10k to help with mixture. Sooooo what do ya think? Sound good? Thanks again!

Re: Making sure..

Scupra — Fri, 11 Jan 2013 16:09:05 GMT

Early friday bump day

Re: Making sure..

Shogun — Fri, 11 Jan 2013 18:00:49 GMT

Personally I think it's an excellent plan.

Re: Making sure..

Scupra — Fri, 11 Jan 2013 21:46:31 GMT

Thanks for the reply Shogun! Do you think only having two cards for my first year of rebuilding will hurt my score?

Re: Making sure..

Shogun — Fri, 11 Jan 2013 21:55:47 GMT

I think 2 secured is good for now. Garden them well for about 6 months, then go for an unsecured line. Maybe a GE backed card.

Re: Making sure..

Scupra — Fri, 11 Jan 2013 22:55:09 GMT

Only my NFCU is secured Cap1 is unsecured though. Do you think a Walmart card would be in the realm of possibility after 6 months of good payment history with these cards? Thanks again!

Re: Making sure..

Shogun — Sat, 12 Jan 2013 03:47:34 GMT

Yes, get your TU up to the 620-640 range and you should be good to go.

Re: Making sure..

Scupra — Sat, 12 Jan 2013 04:49:41 GMT

Good to hear! I have looked at posts and got myself worried because of so many denial stories with a bk involved. Discover it is the long term goal Thank you again

Re: Making sure..

Justrebuilding — Sat, 12 Jan 2013 05:30:16 GMT

All of that looks great- the only thing I would say is you may want to think twice on the car loan. A car loan will negatively impact your debt to income ratio. Depending on your income, the car's monthly payment, and the price range you want to buy in that might not be an issue. Good luck!

Re: Making sure..

Scupra — Sat, 12 Jan 2013 05:40:33 GMT

Very true, that was my reason for keeping the balance lower around $10k My car now is paid off, it's a Honda thank god but it does have high mileage and it starting to need repairs. I'm trying to make it last but am feeling like another year is going to be time for something reliable. Thanks for the input!

Re: Making sure..

Scupra — Sun, 19 May 2013 01:05:52 GMT

A little update on where I am at. in 02/2013 I opened a NFCU cashRewards with a $1k limit so I took a hit for the inquiry and the new account. The hit is reflecting in my EQ but not my TU as my next report is in June, so I expect my TU to drop a bit I am still planning to buy a car at the end of this year or the beginning of next year. 2015 is the plan for the FHA loan as well. Last month I got my credit steps increase on my Cap1 from $500 --> $2k limit. My average age of accounts was 5yrs prior to the new cashRewards that was opened 02/2013 All my cards are reporting $0bal besides one, which I rotate every month.

Now, I am looking for a little advise on what you think I should do. Cards in my sight are a Walmart card at or around 10/2013 (this will be one year post bk), Auto loan end of this year/early next year (keeping it small with around $10k trying to hold out so NFCU will pick me up), I want to try for a Discover IT 2015 (two years post bk), FHA loan 2015

I got a pre approval for an Express card, where I actually shop at and can benefit from. I can use the shopping cart trick so I wont take the inquiry. I am just worried throwing the card in will hurt AAoA and put a dampener in my future credit plans. Any suggestions or tweaks that you would make are appreciated. Thanks for reading and happy rebuilding

Re: Making sure..

Scupra — Sun, 19 May 2013 18:11:23 GMT

Anybody have any suggestions at all? thanks!

Re: Making sure..

Scupra — Thu, 23 May 2013 04:08:40 GMT

I'm sure someone has some insight..

Re: Making sure..

Anonymous — Thu, 23 May 2013 04:23:38 GMT

Are those CC the only things you have open now? No installment loans?

Re: Making sure..

Scupra — Thu, 23 May 2013 04:47:19 GMT

@Anonymous wrote:
Are those CC the only things you have open now? No installment loans?

I dont have any open installment loans currently. I do have two past auto loans that were fully paid, never late. Only other installment loan was a past repo that was iibk.

Re: Making sure..

Anonymous — Thu, 23 May 2013 05:16:59 GMT

I think your plan is good. With letting those CC you have now age and ontime payments for the next year or so your scores will continue to go up.

When you get your auto loan you will have a good credit mix and those ontime payments will also help.

Wait until the end of the gardening time to see where your scores are before deciding on what card to apply for next.

Re: Making sure..

Scupra — Sun, 26 May 2013 02:10:29 GMT

@Anonymous wrote:
I think your plan is good. With letting those CC you have now age and ontime payments for the next year or so your scores will continue to go up.

When you get your auto loan you will have a good credit mix and those ontime payments will also help.

Wait until the end of the gardening time to see where your scores are before deciding on what card to apply for next.

Thanks for the advice! Do you think it would be beneficial to get a small personal loan through NFCU to help with my credit mix? I have had a targeted offer from them for a while that is a personal loan... Thanks in advance!

Re: Making sure..

Anonymous — Sun, 26 May 2013 02:17:18 GMT

It is also an installment loan and will help with credit mix. Take your time making on time payments for the length of the loan.

Keep in mind an auto loan is also an installment account and when you have one another won't help.

Re: Making sure..

Scupra — Sun, 26 May 2013 02:27:40 GMT

@Anonymous wrote:
It is also an installment loan and will help with credit mix. Take your time making on time payments for the length of the loan.

Keep in mind an auto loan is also an installment account and when you have one another won't help.

Sounds good. I wasnt sure if a small 6mo personal loan would help more than the hit to open it would hurt me. Think I will just continue to rotate a 10% bal on my cards and see where I stand come October when I am 1yr post discharge. November will be my magic month to find out if NFCU unsecures my card, which usually comes with a small CLI anyway! Thanks for the help again, sometimes it helps to hear the things you want to do are correct.

Re: Making sure..

Scupra — Fri, 02 May 2014 16:43:58 GMT

Hey everyone! I am now 1 year and 7 months post d/c! Have done almost everything I had planned. In July 2013 I got a car loan to help with mix of credit. Ended up waiting until 02/2014 to apply for a Barclays product, instantly approved for $3k limit on Arrival I guess now I am justr trying to see if I should be doing anything else, or just aging my accounts and making on time payments?

- 10/2012 Cap1 opened at $500 ----> now $2,000

- 10/2012 NFCU secured opened at $500 ---> now unsecured and at $7,000

- 02/2013 NFCU opened at $1,000 ---> now at $8,500

- 07/2013 auto loan

- 12/2013 NFCU $15k NavChek

- 02/2014 Barclays Arrival $3,000

Any help, tips, or suggestions are welcome. Thank you to everyone who has helped me get here, and thank you to everyone that will help me get even further!