New to the forum but have been reading for a week or so. So I decided to add my first post and get an idea of how I should proceed in my rebuilding process. My ultimate goal is I want to be eligible for a home loan (optimally have one built) Around Summer of 2019. Remember this is what I am trying to build towards, so I guess a higher score with excellent history like usuall lol. Here is my short backstory.
I was a young adult and messed up my credit. Got smart and went through all the hoops to clean up my credit. My credit was low 600's when I started the first time and I had it just shy of the 740 mark. This process took my a long time to do, I want to say it was from about 2009-2013 or so. Biggest issue was utililazation (suprise). But I started with one card got it down to 0, rinse and repeat. Okay so then after all that I got laid off at work. Not my full rebuild wasn't fully complete yet at this point so I was struggling, I had a $500 car payment on top of everything else. So once again trying to keep this short I was able to keep up with about 95% of my obligations through 2014 and a few months into 2015. I though I got a really good job or at least good enough to get back on track when I only have 1 or 2 cc's that hit the late mark. My score dropped but not horribly. That job fell through because of the credit issues, go figure so I ended up taking a minimum wage job and basically had to give in every penny to try and keep my car. Fast forward a few months and all my CC's were in default and I couldn't even make enough to pay my car payment. I called my auto loan company and they gave me 2 month deferment. I never was able to pay again. In Early 2015 I got a decent job back in NY so moved back up here. At this point though my credit was just pushing 500 it was shot. I owed so much money that I never would have been able to do what i did before and battled back. I decided bankruptcy was the way to go. I had no idea bankruptcy was going to cost me so much so I started saving. I finally got the money to fill in late 2016 yeah I know a long time passed but I'm not sure if that actaully "helped" or not. This was also putting away $20 some months and then $200 some months depended on how it went. Now for the money I paid this lawyer I would have though me paying him in November I would be Filed no later then December. I was wrong it took him until February to file me. I had my meeting of the creditors on 3/17 and then discharged on 5/22/17.
No I have probably done at least one thing wrong in my rebuild but that is why I am here. I am starting myself a clear plan that I want to stick too. Here is my current rebuild
Capital One Platinum (NON Secured Version) : $500 - 5/23/2017 (Yeah I know 1 day after discharge) - I though it was my best bet I had Capital One for YEARS and YEARS they were paid off before my issues came up so they didn't get burned in anyway. Capital One is probably going to be 1 of the two Companys I use as my main rebuild.
Victoria's Secrect Card : $250 - Did Shopping Cart Trick on 5/30/2017 (I know have a "Store" card shows diversity and that should help scores, I also did not want another hard ping on my credit already)
Student Loans: $5,400 - Has Pre-BK, Opened around Septemeber of 2016. Accounting is in good standing, no payments due yet but I have paid a few months on it
Credit Scores: "Via Credit Karma" TU: 590, EQ: 648, "Via Discover Card Free Fico" EX: 578
I will be signing up for the myFICO thing to give me my scores, my question for that is it says you get a report quartly and not monthly. Will I only see new score quarterly? I don't want to pay $30/mo to only get my score once a quarter.
Okay, so where I want to go from here and need the full amount of advice.
First, my plan with the Capital One card is to charge the crap out of it but to pay it down to less than 10% before the bill cuts and then the remainder after the bill cuts so its at 0 right after it cuts. I am hoping this will show Capital One I plan to use the card but also not carry a balance. I say some people have very good luck with doing it this way and got a HUGE CLI when the steps hit. They went from 1,000 to 5,000 in 6 months. I am just trying to hit $2,500 on the first increase so I can jump up overall credit available.
Second, my plan with the VS card is I plan on charging 25 or so a month on it, prob get my GFa small gift each month with it and pay it off right after the bill cuts. Also heard VS will get generous with CLI's with proper usage.
Third, I am considering grabing a small personal loan for $1,000-$1,500 to finish paying of my school fees so I can graduate in September. I figure this should have the exact same impact as one of those credit builder loans. I do have a co-signer if need be, I really want to wait until I get the jump from the Cap One card but it might be to late.
Fourth and so on, I clearly want to build my credit with Capital One, they were great to me in the past and it seems they are going to continue on that way. I eventually want to try for either the Quicksilver or Venture card after at least 6 months maybe longer. I untimatley want to have both QS and Venture with them. I also plan on targeting Discover. I did not burn Discover in anyway and they actually approved me for a secured card back in 2016 but I didn't pull the trigger on it. I want to wait maybe 8 or so months before trying Discover, I really don't want any secure cards.
I am not really sure where I should go after the Discover card, should I just try and build up the 4 I would have at that point or should I try and add another Store type card? I do plan on either purchasing or leasing a vehicle within a year (if I can). I can't do NFCU so that is out, I don't want to do the SCT anymore becuase the credit lines arent worth it or the stores they go to I don't use. Express is another one I would consider as my GF loves the stuff from there.
Is there a difference from a company Charging Off your debt or IIB. All my cards were either charged off or already paid off by the time I did bankrupcty. Not sure if banks count this the same way. I burned Chase,Citi,Barclays. Chase was hit hard, Barclays was hit really hard. Citi wasn't hit to bad. As you can see why I am probably limited at least for awhile to Cap1, Discover, and probably BofA.
If I think of anything to add I will, but that is all I have for right now. I welcome all comments and suggestions. I will post my progress on this thread (Assuming it is good progress) this way other people can see what/where I went.
The reports are the ones that you get an update quarterly.. As soon as there is a change reported from the credit bureaus to the MYFICO monitoring subscription you will see the change. So let's say for example an inquiry has just reached it's 12 month reporting mark and no longer affects the score, you will get an alert and see the model #8 score changes in the dashboard. Or another example would be, let's say you maxed out your credit card and then paid it done to a 6% utilization, as soon as the credit bureau reports the changes to MYFICO you will see it without having to wait a month or even a quarter.
On rebuilding your credit here is something to keep in mind. Have no more than three credit cards. Keep in mind that anytime you open a new revolving account you lower your average age down. And credit card accounts are considered new when they have been open for less than two years. Inquiries will hurt your score for only the first 12 months after a lender has pulled your credit.
And charge off means that the company took a loss. Always be mindful that your credit will not rebound right away. It takes time & patience. Also, watch out for high balances even though you pay them off before the statement ends for the month. It's not the FICO scores, but it is the lenders that you need to be careful of, especially after a chapter 7 discharge. I was told by a lender that post discharged bankruptcies, the accounts holder is careful watched. If they feel that you are getting too close to your credit limit they could reduce it or in some cases terminate your account.
I pay $30/month for MyFico and have access to all my FICO scores daily.
Also, you should read this post: http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/m-p...
I purchased the $30/mo sub and got my actual scores
Fico 8 6/5/2017: EQ: 608, TU: 576, EX: 578
Once Capital One Account reports I should hopefully see 643,601,613 according to the estimator. Does anyone know what I should look for in my reports to see why TU and EX are so much lower then EQ.