Hello All! I wanted to Update you on my Bankruptcy Journey.
I lurked the forums for quite some time thinking about whether I should file for BK. That was decided for me when I turned in an vehicle that I was upside down on. I owed 18k on a vehicle that booked for 9k. It was a danger to me as it would hesitate to accelerate with only 20k miles on it and under warranty. It was in for repairs 15 times in 12 months. I finally decided to turn it in before it killed me as I couldn't trade it in anywhere due to the negative equity (I tried). So, the bank sold the vehicle at auction for about 7k. They then came after me for about 13k with all of the fees and remainder of the loan. They got a judgement to garnish ****25%**** of my wages (behind closed doors, I was never notified or given the chance to appear). I couldn't afford to take that type of hit so I filed.
I filed BK7 in April of 2018. I was discharged in July of 2018.
I was getting offers for credit the moment I filed...when the filing hit my credit reports my score actually went up 90 points. This was before they even updated any of the negative accounts...interesting. Anyhow, I did bite on an offer from Capital One (Didn't burn them in BK).
So... I took that card before discharge with a $300 limit and credit steps to $500. After discharge I applied for Target and Kohl's..both of which were approved. Then I had a few other offers by mail within six months after discharge and I took a few of them. Some of which I will close before the AF hits after one year. I also applied and was approved for a CAP 1 Auto Loan one month after discharge ( I didn't have a car at the time so, I desperately needed one. I was very happy!)
Ok so...here are the accounts I have established since my discharge only 9 months ago!
06/18 - Capital One Platinum - SL $300 - CLI to $500 after credit steps. Still at $500...not sure why, have run $4k thru it.
08/18 - Kohl's Capital One Card - SL$300...still at $300 even though I've maxed and paid off four times. They even sent me an upgraded card.
08/18 - Target TD Bank Card - SL$200 - CLI to $400 after two months - CLI to $600 after five months.
10/18 - Legacy Visa - SL$350...Still at $350...will close after 12th statement cuts.
10/18 - Indigo MasterCard - SL$300...still at $300...will close after 12th statement cuts.
12/18 - Capital One Quicksilver - SL$300...CLI to $500 after credit steps (Just Completed).
02/19 - Credit One Bank Visa - SL$300...will close after 12th statement cuts.
So, I've starting to have a very solid revolving history now! I took some of these offers only because I wanted to have several accounts in good standings. I've already set calendar reminders to close them. So, once I do that...I will have have the Capital One Platinum, Capital One Quicksilver, Kohl's, and Target (I use them all from time to time.)
Yay for re-building!
Starting Scores were between 520-546 at Discharge. Was at around 590 before filing, increased by a huge amount and then dropped back down once everything was updated with BK.
FICO 8 Scores now!
Equifax Trans Experian
638 640 625
I just paid off a few cards to a zero balance. They were reporting 50-60% (Hard not to use that when the limits are so low.) Overall Utilization was around 25%.
Now to the Auto part, I am going into Real Estate schooling next month and will do Real Estate part time while working full time at my current job. I was told by all of my contacts in the business that you must have a nice and newer vehicle. ( I live in the Beverly Hills of FL...Right on the Gulf Coast.) Properties average around $300k and will go up to $30 Million.
My current Rate was right at 9% on my old vehicle. (I put 20% down to bring the rate down.) I've only had the vehicle since 08/18 so I figured Capital One wouldn't do another loan for me just yet.
So, I did the Cap 1 Auto Navigator this month like I did with the first one just to see how they felt. APPROVED for a second Auto Loan without needed to trade in my current car. I didn't want to trade it anyway as I would've had some slight negative equity. A friend of mine decided she wanted to buy it from me so, it worked out anyway. So...I began shopping and Capital one had me at about 15% on a used vehicle the second go round...I wasn't quite happy with this but, I kept looking...They had me at about 13% on some new vehicles that had big rebates.
I ended up buy a 2019 Sonata Sport with $6k in rebates...Once the tax, tag, title and such were added...Capital One actually increased the rate to 16% which was a deal breaker for me (My payment was going to be unaffordable). The finance manager asked if I would finance thru someone else. I told him I really liked Capital One but, I would finance thru Hyundai Motor Corp to build a relationship with them if they would take the deal.
Turns out...to my surprise...they did!
Hyundai approved me with $0 down at 12%. (4% lower than Capital One)
It is still higher than my last one but, I will get to build a relationship with Hyundai just in case I want to lease/buy in the future from them. I really do love my 2019 Sonata. Also, it's new so...it is really easy to refinance. I will be keeping this one a long time. I do not normally buy new vehicles because of negative equity so...as long as everything with the car goes smoothly... I will keep it. Can't beat the warranty either!
So, my question is...I am a PenFed member thanks to the forums here.
I'm going to wait until all of my CC payments report as MyFico claims my score will go up around 30 points!
Should I use PenFed for the Refinance? Do you think they would take me at around a 640-650 Fico? Are there any other banks you recommend? Also, should I apply as soon as my scores and such update? Or wait a certain time frame?
THANKS IN ADVANCE FOR YOUR HELP!
The forums have been awesome to me, I really appricate you all. I am glad I am on my way to being financially responsible! BK was one of the best things that I've done.
