Filed in mid-June, had my 341 meeting about a week ago. No major issues anticipated with my bankruptcy, anticipate getting discharge in the next 60-90 days (there's a property to liquidate - do not think that will delay discharge).
Who I burned:
Mortgage Co ($450K)
PNC Bank ($125K)
Federal Credit Union CC (not Navy) ($15K)
Credit One ($1K)
Synchrony - CareFirst ($1K)
Citi - HomeDepot ($300)
I have about $45K in Student Loans that will come back after discharge. I have a reaffirmed car with Carmax (to be paid off in September) and a personal finance loan that I retained that will continue to report for another 6 months (the finance company has a lien on the car).
I was a member of Navy Federal a long time ago (before I got married - through a former fiancee) and went back and got reinrolled through myself and my membership is still showing that I've been a member since early 2000, so that's good.
FACO scores of 570 from TU and EX (CrediKarma). I don't plan on pulling my 3 and reviewing until after I get my discharge.
I now have no CC, and know that I need to change that to start the rebuild. Since I have the revolving loan account for the next 6 months (no lates, reporting correctly), I know that I'm good there until it's paid off, then I'll pick up a NFCU Shared Secured Loan ($250 for 6 months).
I checked the pre-qual for Discover and CapOne and both are showing no products, but I'm not sure if that's because I haven't gotten my discharge yet. I'd really like to go ahead and get started, but realize the need for patience. Should I go ahead and get a Navy Secured card for $200 now, just so I can put my Netflix or Amazon Prime bill on it and PIF each month? Also, I am looking to move most of my banking over to NFCU (since they're a lot more BK friendly than my current CU), so I was also thinking of going ahead and getting the Shared Secured Loan ($250 for 6 months - about $40 a month) just to re-establish a relationship with them, that might help at the 6 month mark when they consider switching it to unsecured.
Basically, I'm loathe to wait for the 2 months to get turned down for a CapOne or Discover unsecured (and have to go the secured route at that point in time) when I can go ahead and start that now with NFCU. I know I have to get 3 CC - to have a good ration of accounts , but I'd rather get a secured loan and secured card with NFCU now, then they're reporting and I have something reporting for a few months before I apply for CapOne and/or Discover in a few months after I get my discharge.
Anything I'm missing? I really don't want to go Ollo or some other provider that has AF...really like to stick to 3 companies for the long haul and just let it garden.
Best thing to do is wait until up to 30 days after you get your DC. Some not all get a scoring bump. You can then check your reports and make sure everyone reported IIB and 0 balnce. Grab your FICO's at freecreditscore.com. Get all 3 and then cancel before the trial ends. That may help in getting better secured cards that may graduate or you may aviod vulture fee cards. Or you may hit it lucky and get a Cap1 unsecured since they werent listed as being burned. Let the smoke clear before you make any moves. And the other thing have to settle also on your reports. Credit isnt going anywhere. And either way it will take time to recover. But it can be done the right way and we'll be more than happy to help you out. People that rush to get credit days after a MOC lose out on better things if they would have waited. Seen it too often. Welcome to the Forums. Were here to help everyone recover.
@Anonymous wrote:We started our rebuilding process; immediately after being discharged. We needed a car badly; ( motor blew in one we had. It was 14 years old), We thought about going to go to one of those "By Here-pay-here" Lots, but found out that they don't report..
We were able to get financing on a 2016 @ 16%, at regular dealership. .. Initially not happy re; the 16%, but Found out thru others; that this was not such a "bad rate"; given our BK situation... This Helped raise our scores!!
We then; being in a hurry; got two secured CC ( Low limits, tho, cause all the $$ we had, after car purchase ) Didn't even use the cards ( yet); as we just wanted to get couple of cards under our belts....
Wish we had of been more patient and waited, cause only 6 months later, we were approved for Capital One / 3k.; and Discover / 2500.
I was shocked; about the Cap-one, cause they were included in our BK-7.
My advice; is to go slow..
+1 Great story and advise! Congrats on your better cards.
Thank you for the great advice. I should have discharge in about 6 weeks, so I think I will just wait. I fully anticipate my scores to bump up and perhaps that will help me get a decent unsecured card vs. a secured vulture card.