BK7 18 month update - looking for feedback

[MrDJSeattle]

Hi everyone,

This is my first post and wanted to share my journey over the past 18 months.  I am hoping to elicit feedback on how to make the most progress possible over the next twelve months.

• BK7 - Filed 8/2016 // DC 11/2016
• IIB
  
  • Bank of America (card)
  • Barclaycard (card)
  • Chase (card)
  • Discover (card)
  • Synchrony (card)
  • Lending Club (personal loan)
  • Prosper Marketplace (personal loan)
• Not IIB
  • Real estate (renting at time)
  • Car loan (reaffirmed)
  • Two student loans
• Scores post filing (8/2016)
  • Experian 578 (Vantage 3.0 - only one I had at the time)
• Scores as of today (2/2018) - FICO 8
  • Experian 661
  • Transunion 660
  • Equifax 674
• Relevant recent history
  
  • USAA
    • Secured 5K
    • Unsecured 3K (1/2018: CLI 1K -> 3K)
  • Navy Federal
    • Unsecured $8,500 (12/2017: Auto graduated from secured; 2/2018: Auto promo to Visa Sig)
  • Nordstrom Retail Card
    • Unsecured $500 (12/2017, TD Bank)
  • Ally Financial (reaffirmed in BK)
    • Paid off: 10/2017
  • Two student loans - all current and in payment
• Denials
  • Alaska Airlines Visa Card (BoA - denied 12/2017)
  • Discover It (Denied 12/2017)

Keeping my credit utilitization low, but trying to reap the rewards from my NFCU Visa Sig at the same time since there doesn't seem to be any good travel cards for people in my situation.  My goal in about 18 months is purchase a home with VA loan.

Again, looking for any advance or feedback.  Feel free to ask questions.

Thanks!

[Anonymous]

Depending on what balances are being reported  on your credit reports (if any), additional credit may lower your overall utilization ratio. I would not look at prime lenders that you have burned, like BoA and Discover. Instead, I'd look at rebuilder brands like Ollo and Capital One. It's likely you'd get approved for a $3k limit with Capital One, depending on what your income/DTI looks like.

I'd focus all my energy, however, on your student loans. These payments will count against you in mortgage underwriting. In other words, the more you pay on credit, the less of a house you buy. Is it possible to pay off 1 or both of these loans prior to your mortgage application? You will likely see an increase in credit score by lowering your loan balances.

[MrDJSeattle]

Thanks for the feedback!

I have (now) learned to stay away from lenders that were IIB as well as the prime group during the next few years.

I realized after reading your reply that one student loan is actual in my mother’s name and I just pay it on her behalf. The other one is on my credit report. This is the only monthly payment that I have besides rent, making my DTI is pretty low (17% including front loading with current rent). I suppose lowering this would help, but it would come at a cost to cash-available. The interest rate is 2.3% too. I have considered paying it off a lot!

[Scupra]

Really sounds like you are going in the perfect direction for home ownership. If you wanted another card I would limit it to one, and just garden what you have. Don’t worry about util too much right now until you are about to app for your home. You may want to take this time to find a reliable LO that is knowledgeable in VA/BK lending. Sometimes that alone can prove to be a PITA

[Hex]

How/when did you get a USAA unsecured card after BK? I thought you had to wait at least five years post dc. Data would be helpful and interesting.

[MrDJSeattle]

Honestly, I think it may have been timing. The card was opened right before the BK was filed and because there was no balance, not IIB.  

[Hex]

I’ve been researching USAA and BK. I have been a member for 15 years and I have NEVER had even the smallest problem with my checking or other accounts. I never had a credit product with them so they weren’t included in my BK. I found out the hard way they won’t allow me any credit products for at least five years. If you include them in BK they take adverse actions on your other accounts (mobile only access). I tell you this to warn you to not apply for any additional credit products with them. If they see your BK they might close your existing credit card. I don’t know they will- but I’d be surprised if they didn’t.

[MrDJSeattle]

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@Hexwrote:
I’ve been researching USAA and BK. I have been a member for 15 years and I have NEVER had even the smallest problem with my checking or other accounts. I never had a credit product with them so they weren’t included in my BK. I found out the hard way they won’t allow me any credit products for at least five years. If you include them in BK they take adverse actions on your other accounts (mobile only access). I tell you this to warn you to not apply for any additional credit products with them. If they see your BK they might close your existing credit card. I don’t know they will- but I’d be surprised if they didn’t.

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Thanks for the heads up, greatly appreciated!  I suppose their underwriting criteria took note of the BK when I did the CLI back in December.  I will not apply for anything new with them based on this advice.  Thanks again!

The problem that I have with the USAA secured card is that it will never graduate.  Meanwhile, the NFCU unsecured card graduated in less than a year to the full CL from when it was secured.  They also gave me the upgraded Visa Signature product.