topic Re: Approvals During BK in Rebuilding Your Credit

Approvals During BK

CostantinoA — Tue, 20 Aug 2019 10:49:36 GMT

Hello:

My chapter 7 will be discharged in a few weeks. My attorney said I could apply now to start the rebuilding process. I applied for 3 cards and received approval on all 3.

Capital One Platinum $300 limit

America First Credit Union $200 limit

Credit One $400 limit

Sadly, this is my second time having to file BK. The first time was in 2007 and then in 2019. I burned all 3 banks listed above in my 2007 BK filing but not in my most recent one. They all opened accounts no problem for me while my Chapter 7 is still open.

Re: Approvals During BK

FireMedic1 — Tue, 20 Aug 2019 11:06:37 GMT

Congrats. Now stop there and let them age for a while. I'd say around 9-12 months start to hit up Disco. In 3 months. Upgrade your Plat to the QS so can get cash back then. If you dont have any installment loans. Car, student, mortgage. Grab a self lender or local CU for a secured loan. Then your set for the FICO rebuilders bonus score. You will get a score bump once everyone reports IIB and 0 balance. Check your real reports and make sure there are no left over negs on your reports. It will take time. Play it right and you'll get bigger and better things down the road. No app sprees. This time is to prove you can be credit responsible. Good Luck!

Re: Approvals During BK

Anonymous — Tue, 20 Aug 2019 12:44:02 GMT

^^^ all of what @FireMedic1 said, and also, use your cards as you see fit, but each month, pay two of them to $0 and the third to $10. Let the $10 report, then pay it off (to avoid interest) and repeat. This is called AZEO (all zero except one) and has shown to be worth 10 points give or take on your reports.

Re: Approvals During BK

Anonymous — Tue, 20 Aug 2019 13:03:29 GMT

3 Visa/MC are a good start.

I would wait a few months post discharge and see if you can get a Secured Discover card. Most of the time it will graduate to unsecured. I started with a $500 limit on the secured card. It's now unsecured and I have a $4,500 limit and got a 2nd Discover unsecured with $4,000 limt 0% for 14 months. FYI I opened my secured Discover 9 months post discharge. I may have applied immediately after discharge and been denied for their secured card.

Perhaps look into the shopping cart trick for 1 or 2 store cards that are useful for you. Maybe Overstock as it's usually a generous starting credit line.

Re: Approvals During BK

CostantinoA — Wed, 21 Aug 2019 06:07:46 GMT

@Anonymous wrote:
3 Visa/MC are a good start.
I would wait a few months post discharge and see if you can get a Secured Discover card. Most of the time it will graduate to unsecured. I started with a $500 limit on the secured card. It's now unsecured and I have a $4,500 limit and got a 2nd Discover unsecured with $4,000 limt 0% for 14 months. FYI I opened my secured Discover 9 months post discharge. I may have applied immediately after discharge and been denied for their secured card.

Perhaps look into the shopping cart trick for 1 or 2 store cards that are useful for you. Maybe Overstock as it's usually a generous starting credit line.

I had the Discover secured card that unsecured. It was included in my BK so not sure they will give me a card again.

Re: Approvals During BK

CostantinoA — Wed, 21 Aug 2019 06:08:20 GMT

@Anonymous wrote:
^^^ all of what @FireMedic1 said, and also, use your cards as you see fit, but each month, pay two of them to $0 and the third to $10. Let the $10 report, then pay it off (to avoid interest) and repeat. This is called AZEO (all zero except one) and has shown to be worth 10 points give or take on your reports.

Thank you. That is the plan.

Re: Approvals During BK

CostantinoA — Wed, 21 Aug 2019 06:09:45 GMT

Thank you! I will upgrade to the QS for sure. As for Discover, I included them in my BK so I don't think that will fly. I need to update m sig, but I opened a self lender as well before the credit cards. Thank you.

Re: Approvals During BK

Anonymous — Thu, 22 Aug 2019 08:10:33 GMT

Congrats on the rebuild process. Noticed you have 21 INQs on EX? That would be in the last 24 months. Curious as to storyline behind that if you dont mind sharing. The fact you were able to get approved for anything more than a bus pass with that many INQ (last 24 months) is the stuff made of legend. My pucker factor increases at 5. My hat is off to you sir!!!

Re: Approvals During BK

CostantinoA — Thu, 22 Aug 2019 08:24:58 GMT

Lol. They inquires were from 2 auto loans I obtained about 2 years ago. They are scheduled to drop off next month. I only have 3 inquires in the last year.

Re: Approvals During BK

Anonymous — Thu, 22 Aug 2019 10:11:13 GMT

Ok makes sense. Car dealers are the devil. Should see a boost when they fall off. You using the $1 EX Fico trial?