BK7 Data Point

[Rebuilding69]

$105k BK7 - Mix of medical bills and bad usage of CC's & 2 loans(Discover & NFCU). Vast majority of debt was NFCU, but also included Discover, AMEX, Capital One. My credit report shows a mix of positive & negative accounts for AMEX, Discover & Capital One. Weird thing is it doesn't show a couple IIB negative accounts, whereas everything else looks correct. My credit score is now low 600's, down from low-mid 700's just earlier this year. I have a slew of lates on my reports ranging from 30-120 days across like 5 or so accounts.

Had 341 meeting in March 2024, discharged in April 2024.

Got an unsecured $500 Ally card(literally the only card I could get at the time) in June-ish  2024. BTW, to anyone thinking of getting an Ally card, they have been SUPER SLOW at updating balances for payments & charges. Not sure I should have gotten this card, but it is what it is.

I read about Cap1 being lenient after BK even if you burned them in BK, so yesterday I was able to snag a $2000 Cap1 Savor card after testing prequal page. I also tried AMEX prequal but no dice.

Card size is no longer really important to me like it was before as I'm treating all CC like cash from now on(unless it's an emergency I suppose), so if I don't have the cash to buy what I want, then I don't need it.

I wanted 3 cards to garden with, but I suppose 2 will have to do for now, until my scores get higher.

There was a type of secured loan I read about before, to help raise scores, but I can't remember the name of it now. I'll do some Googling to find it unless someone can post the name for me.

So for now it's garden time. If anyone knows of a 3rd card I might be able to get to boost scores that would be great, otherwise 2 cards it is. Don't know if a 3rd card really makes that much of a rebuilding difference than 2 cards.

The hardest part of this BK experience has been changing my mindset about CC's and treating them like cash-only spending, rather than buying whatever I want at the time, and winding up using them to live on.

[FicoMike0]

First, congratulations on figuring out credit isn't free money. Hard point for many.

It's claimed that up to three cards helps with "accounts being paid as agreed" metric. Doesn't matter if it's a $ 200 secured, still counts. For a third card, most banks and credit unions have secured cards. Get one, make a small charge every month and pif before it reports. You want two of the three cards to report zero. See azeo.

I think what you're talking about is a share secured loan (ssl).

First, it only helps if you have no installment loans. I got 30-40 points on fico8 from one.

Second, the only workable ones are from penfed or nfcu (everyone loves navy). Others offer a ssl, but advance the payment schedule if you prepay, they do not. This is key!

Third, the ssl is sort of a fake loan, you deposit the loan amount, borrow your own money back, then prepay 91% of the loan. The interest rate is 2% and there's no hard pull.

Fourth, an example. I deposited $2100 with penfed, borrowed it back for seven years, then prepaid $1911, leaving me with a loan balance of $189, my next payment of $25.xx due in 2030. So, I put up $2100, got it all back and for the next seven years I will have an installment loan, paid to <91%, reporting on my credit report. Interest on the loan is < $4 a year.

Finally, since you're on the navy $hit list, it's penfed for you. Anyone can join. They do the loan for half as much as navy anyway, but they're tricky. If you re interested, post and I'll give you the step by step.

[Rebuilding69]

TY for the good info. I'm definitely interested in the step by step for Pen Fed ssl.

I'm part of a local credit union at the moment & was actually looking at their ssl, so I'm glad you let me know not all ssl's will do what I'm looking for.