cancel
Showing results for 
Search instead for 
Did you mean: 

Approaching Discharge Date need advice

sihmud
New Member

Approaching Discharge Date need advice

Hello all,

 

I filed Chapter 7 on October, 2020.  I will be receiving discharge around the first week of febuary but would like to be proactive and start getting advice now. I was able to reaffirm my auto loan with Navy Federal so i wont be entering post BK with no credit i have auto loan with 1 year history ontime payments and i am also an AU on 1 Amex card (3.5k limit and 1 TJ Max retail card (2.5k limit) neither have a balance. my fico scores are currently reflecting 681 TU // 691 EQ // 582 EXP. I included a majority of the major credit card banks so not sure where to go for my first credit card option. not sure if this make a difference but a majority of my credit cards were already discharged around 2017 so way before my BK filing so its not like the creditors were surprised or hit out of nowhere when i filed. unfortunately i had to include some credit cards that i was in good standings with just because my attorney said i had to include ALL credit lines in filing. in BK i included DISCO (WAS DISCHARGED IN 2017) / WELLS FARGO (WAS DISCHARGED IN 2017) / CREDIT ONE / NAVY FEDERAL CARD / CAPITAL ONE PLATINUM (WAS DISCHARGED IN 2017) / CAPITAL ONE QUICK SILVER (WAS DISCHARGED IN 2017)/ MERRICK BANK. 

 

So my question is where do i start? will any of these banks approve me for a credit card again? i know NFCU won't but how about the others? if not then would having my wife co-sign with me help get an approval? she has thin credit however its good with NO bk on file

 

 

Thanks in advance!

7 REPLIES 7
sihmud
New Member

REBUILDING CREDIT AFTER BK7 DISCHARGE

Hello all,

 

I filed Chapter 7 on October, 2020.  I will be receiving discharge around the first week of febuary but would like to be proactive and start getting advice now. I was able to reaffirm my auto loan with Navy Federal so i wont be entering post BK with no credit i have auto loan with 1 year history ontime payments and i am also an AU on 1 Amex card (3.5k limit and 1 TJ Max retail card (2.5k limit) neither have a balance. my fico scores are currently reflecting 681 TU // 691 EQ // 582 EXP.

 

CREDITORS IIB

  1. WELLS FARGO
  2. DISCOVER
  3. CREDIT ONE
  4. CAPITAL ONE
  5. NAVY FEDERAL CARD
  6. MERRICK BANK

So my question is where do i start? will any of these banks approve me for a credit card again? i know NFCU won't but how about the others? if not then would having my wife co-sign with me help get an approval? she has thin credit however its good with NO bk on file

 

 

Thanks in advance!

Message 2 of 8
SUPERSQUID
Established Contributor

Re: REBUILDING CREDIT AFTER BK7 DISCHARGE

Cap 1 is forgiving but after 1 year post bk dc. i got back in with them 1.5 years post bk7 dc, i burned them for 5k. they started me off with a baby limit of 300 in may 2021 but now i have 3 cards with them, kohls 1500, quicksilver 1800, and savor one 3k.

You might have to start with starter cards that dont have the best terms or interest.

the ones i started out with were, applied bank, reflex, first digital, firestone auto, kohls, big lots, ikea, fingerhut, ollo, mission lane, ymmv .some cards like capital one have a prequalification page.

some people like to start with secure cards, its all a matter of what you want

{ BK7 DC 12/2019 } target 700/ kohls 1500/ discover 3k /mercury 3350 /ollo 600 /mission lane 1050/ ikea 750/ firestone 2800 /legacy 2000 /first savings bank cc 2000/ cap1 QS 1800/ cap 1 savor one 3k /fingerhut 1950/ comenity rewards mc 1k, Penfed PCR 7.5k
NFCU >cash rewards 3700




>BABY NEEDS NEW SHOES !!!!!
Message 3 of 8
sihmud
New Member

Re: REBUILDING CREDIT AFTER BK7 DISCHARGE

 


@SUPERSQUID wrote:

Cap 1 is forgiving but after 1 year post bk dc. i got back in with them 1.5 years post bk7 dc, i burned them for 5k. they started me off with a baby limit of 300 in may 2021 but now i have 3 cards with them, kohls 1500, quicksilver 1800, and savor one 3k.

You might have to start with starter cards that dont have the best terms or interest.

the ones i started out with were, applied bank, reflex, first digital, firestone auto, kohls, big lots, ikea, fingerhut, ollo, mission lane, ymmv .some cards like capital one have a prequalification page.

some people like to start with secure cards, its all a matter of what you want


What are your thought on PenFed? should I open a membership now or wait until discharge? and apply down the road

Message 4 of 8
Mjhall85
Frequent Contributor

Re: Approaching Discharge Date need advice

Well congrats on almost to your discharge. Your best bet is wait for about 30 days after discharge to make sure your report is all reporting right,credit one is surely forgiving as well as capital one. A lot of people have luck right after discharge some before it getting approved. I would do the prequalifications on some of the cards and go from there. You won't get any great cards from the start but just have to look at it as a stepping stone to greater things down the road.Best of luck on your rebuild!

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 5 of 8
MileHigh96
Regular Contributor

Re: Approaching Discharge Date need advice


@sihmud wrote:

Hello all,

 

I filed Chapter 7 on October, 2020.  I will be receiving discharge around the first week of febuary but would like to be proactive and start getting advice now. I was able to reaffirm my auto loan with Navy Federal so i wont be entering post BK with no credit i have auto loan with 1 year history ontime payments and i am also an AU on 1 Amex card (3.5k limit and 1 TJ Max retail card (2.5k limit) neither have a balance. my fico scores are currently reflecting 681 TU // 691 EQ // 582 EXP. I included a majority of the major credit card banks so not sure where to go for my first credit card option. not sure if this make a difference but a majority of my credit cards were already discharged around 2017 so way before my BK filing so its not like the creditors were surprised or hit out of nowhere when i filed. unfortunately i had to include some credit cards that i was in good standings with just because my attorney said i had to include ALL credit lines in filing. in BK i included DISCO (WAS DISCHARGED IN 2017) / WELLS FARGO (WAS DISCHARGED IN 2017) / CREDIT ONE / NAVY FEDERAL CARD / CAPITAL ONE PLATINUM (WAS DISCHARGED IN 2017) / CAPITAL ONE QUICK SILVER (WAS DISCHARGED IN 2017)/ MERRICK BANK. 

 

So my question is where do i start? will any of these banks approve me for a credit card again? i know NFCU won't but how about the others? if not then would having my wife co-sign with me help get an approval? she has thin credit however its good with NO bk on file

 

 

Thanks in advance!


Congrats on almost getting to your discharge.  As was mentioned above, I would definitely check your credit reports after 30 days post discharge to make sure that everything is reporting correctly.  As far as where to go next?  To the best of my knowledge, no CU will ever take you back in if they were burned unless you pay them what was owed, and even then that's not a guarantee.  But luckily there are some halfway decent options out there you can try without necessarily having to resort to the worst predatory lenders out there.

 

After my discharge, I was able to get a card from Mission Lane, Ollo, and Mercury.  They don't have the best interest rates (obviously) but they are all unsecured cards and Mercury gave me a $3K credit limit.  I would also open a savings account with PenFed because they are VERY BK friendly.  I opened a savings account with them and then just barely 4 months post discharge they gave me a card with a $6K limit, by far the highest limit of any lender.  The credit bureaus like 3 revolving accounts and one installment loan as a minimum to get decent scores, and since you already have a car loan, you are good there.  Also, you still might be able to get in with CapOne again after your discharge because they tend to be very forgiving, you can go to their prequal page and see if you would be preapproved for anything after your DC.  So you definitely have options to pursue.

 

Good luck going forward!

BK7 discharged - 06JUL2021

Loans:

Revolving Accounts:



FICO8 Scores on 08/19/2021:

FICO8 Scores on 11/22/2021:
Message 6 of 8
SUPERSQUID
Established Contributor

Re: REBUILDING CREDIT AFTER BK7 DISCHARGE


@sihmud wrote:

 


@SUPERSQUID wrote:

Cap 1 is forgiving but after 1 year post bk dc. i got back in with them 1.5 years post bk7 dc, i burned them for 5k. they started me off with a baby limit of 300 in may 2021 but now i have 3 cards with them, kohls 1500, quicksilver 1800, and savor one 3k.

You might have to start with starter cards that dont have the best terms or interest.

the ones i started out with were, applied bank, reflex, first digital, firestone auto, kohls, big lots, ikea, fingerhut, ollo, mission lane, ymmv .some cards like capital one have a prequalification page.

some people like to start with secure cards, its all a matter of what you want


What are your thought on PenFed? should I open a membership now or wait until discharge? and apply down the road

Right after discharge open a savings with penfed. i opened my savings with 15 bucks and just let it sit from may til december and then applied and was approved for a penfed power cash rewards card, ymmv


 

{ BK7 DC 12/2019 } target 700/ kohls 1500/ discover 3k /mercury 3350 /ollo 600 /mission lane 1050/ ikea 750/ firestone 2800 /legacy 2000 /first savings bank cc 2000/ cap1 QS 1800/ cap 1 savor one 3k /fingerhut 1950/ comenity rewards mc 1k, Penfed PCR 7.5k
NFCU >cash rewards 3700




>BABY NEEDS NEW SHOES !!!!!
Message 7 of 8
FireMedic1
Super Contributor

Re: Approaching Discharge Date need advice


@sihmud wrote:

Hello all,

 

I filed Chapter 7 on October, 2020.  I will be receiving discharge around the first week of febuary but would like to be proactive and start getting advice now. I was able to reaffirm my auto loan with Navy Federal so i wont be entering post BK with no credit i have auto loan with 1 year history ontime payments and i am also an AU on 1 Amex card (3.5k limit and 1 TJ Max retail card (2.5k limit) neither have a balance. my fico scores are currently reflecting 681 TU // 691 EQ // 582 EXP. I included a majority of the major credit card banks so not sure where to go for my first credit card option. not sure if this make a difference but a majority of my credit cards were already discharged around 2017 so way before my BK filing so its not like the creditors were surprised or hit out of nowhere when i filed. unfortunately i had to include some credit cards that i was in good standings with just because my attorney said i had to include ALL credit lines in filing. in BK i included DISCO (WAS DISCHARGED IN 2017) / WELLS FARGO (WAS DISCHARGED IN 2017) / CREDIT ONE / NAVY FEDERAL CARD / CAPITAL ONE PLATINUM (WAS DISCHARGED IN 2017) / CAPITAL ONE QUICK SILVER (WAS DISCHARGED IN 2017)/ MERRICK BANK. 

 

So my question is where do i start? will any of these banks approve me for a credit card again? i know NFCU won't but how about the others? if not then would having my wife co-sign with me help get an approval? she has thin credit however its good with NO bk on file

 

 

Thanks in advance!


In red you say discharged. You mean charge off? You didnt file back then. Once you check your reports after DC. Make sure they all say IIB and $0 balance. You will get a small score rise from being legally out of revolving debt. Cap1 is the most forgiving and the others are good as mentioned.






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.