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BK7 rebuilding journey - need advice

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Anonymous
Not applicable

BK7 rebuilding journey - need advice

Hey all I have been reading these posts for weeks so I decided to ask for some help on my rebuilding journey. A little history bout myself is that I am currently in chapter 7 bankruptcy and will be discharged on 11-16-19. My scores are currently hovering around 570 across the board. I have no collections at all but the chapter 7 is showing as a public record. I currently am an au on two credit cards showing about a 18%utl. I have a mortgage which I have never been late on and a new car loan. Could someone please advise on what the next step would be. I am looking forward to a fresh start an not make the mistakes I have made in the past. My wife is in the same boat although she has 650 scores across the board without the mortgage showing on her credit report and a new car loan. She also has one credit card of her own (unsecured 250) an an authorized user on another. Advise for her to would be appreciated.

Message 1 of 14
13 REPLIES 13
Anonymous
Not applicable

Re: BK7 rebuilding journey - need advice

RL18, I would post that as a new topic so that more people will see it and you are more likely to get answers. Good luck. 

Message 2 of 14
Anonymous
Not applicable

Re: BK7 rebuilding journey - need advice

Thank you for your response how do I do that?

Message 3 of 14
Brian_Earl_Spilner
Credit Mentor

Re: BK7 rebuilding journey - need advice


@Anonymous wrote:
Thank you for your response how do I do that?

I've alerted a mod. Just sit back and enjoy the ride.

    
Message 4 of 14
FireMedic1
Community Leader
Mega Contributor

Re: BK7 rebuilding journey - need advice

First thing you'll want to do is wait up to 30 days after DC and then get your reports. Then make sure that all creditors have updated your accounts to say IIB and 0 balance. You will then see a score rise from legally being out of debt. Then start the rebuild. This bump could mean the difference between secured and unsecured.

 

In the meantime. If you could post who's going to be fried in the BK. This will help guide us now who you could apply for in future to pass the time. Just dont go out and start apping for stuff just yet. Here's to s smooth ride w/o any problems.


Message 5 of 14
Anonymous
Not applicable

Re: BK7 rebuilding journey - need advice

Thank you for being willing to help me. This is who was fried in bk
Credit cards
Merrick bank (1400 limit)
Cap 1 (750 limit)
Indigo (500 limit)
Credit one ( 500 limit)
Boscov (3k limit)

Cars
Ally
Kia

Personal loans
One main financial (6k)
Mariner finance (2k)
Message 6 of 14
Phoenixupward
Regular Contributor

Re: BK7 rebuilding journey - need advice

In regards to the creditors that you have burned, cap one is very forgiving.  Keep checking their pre quail site.  I burned them for about 6k and they let me back in one year after my discharge date.  However, some have gotten back in earlier. Since you didn’t burn Discover, I would check their prequal site.   Even though I didn’t burn them, they offered me a secured card post discharged but I didn’t accept the offer.  I waited about  8.5 months and was approved.  So keep trying the prequalify sites for both. Also, try Blaze Mastercard.  I was approved  1 one post discharged.  There’s an annual fee of 75 but the starting limit was 1.5k.   Try to join some credit unions.  Navy Federal is the best if you have immediate family members connected to the military, alive or deceased.  Even though I burned cap 1, I was able to get a kohl’s card via their prequalify site before cap 1 approved me for their credit card.   Boscov is backed by Comenity Bank so you will probably have to wait but they tend to let people back in.  I burned them for several accounts but they approved me for overstock card 3 months post bankruptcy discharge via the shopping cart trick.  Also, synchrony bank tends to be very bk friendly.   They back eBay and PayPal mastercards, Amazon and a ton of other stores.   Target which is backed by TD Bank Is Bk friendly.   I burned them and got another card about 6 months post bankruptcy discharge.  

‘My advice to you is to choose your credit product carefully.   Make sure your credit report is clean.   I’m 15 months post bk discharge and I have about 20k line of open credit.  I pay in full every month and keep my utilization 1 percent.   

Congrats and good luck on your rebuild.

Message 7 of 14
Anonymous
Not applicable

Re: BK7 rebuilding journey - need advice

I had a question Phoenixupward. I am post bk7 discharge (08/18/18) I've pulled my reports but some are showing charge off and not iib how would you go about disputing because I tried online and I couldnt figure it out.
Message 8 of 14
Phoenixupward
Regular Contributor

Re: BK7 rebuilding journey - need advice

I assume that you obtained your credit report from perhaps, freeannualcreditreport.com.    Each credit bureau will allow you to dispute inaccuracies on your report.   There should be a dispute tab and/or a dispute link on each credit bureaus'website.  If you are still having trouble locating the dispute link, use the bureaus' search engine by typing dispute.  A link should guide you through the process.  Regarding the charge offs, were the creditors listed when you initially filed for bk or were the charge offs prior to you filing for bk?   Don't be alarmed.  Once you file for bankruptcy and you have been discharged, any debts prior to your file date are not your responsibility.  Your discharge paper is like your driver's license, if need be show it for verification purposes.   I had a collection agency come after me after the initial creditor sold the debt post bankruptcy discharge.  I told them I filed for bankruptcy and faxed a copy of my discharge paper.   

Also, charge offs fall off credit reports sooner than a chapter 7.   I see that our discharge dates are very close, actually a few weeks apart.  Please let me know how your rebuild is going thus far and if I can further assist you don't hesitate to contact me.

Good luck and God bless

Message 9 of 14
Guyatthebeach
Valued Contributor

Re: BK7 rebuilding journey - need advice

RL18,

 

I would wait 30 to 60 days after your discharge date to make sure everything is repoorting correctly before applying for new credit. While you are waiting for your discharge, join Navy Federal CU if you are eligible to join. If you aren't, don't worry about it because there are other credit unions that can help you with your rebuild. I actually used a local credit union for my rebuild and they have given me the best rates since day 1. If you have to find a CU to join, look to see if the CU offers credit rebuilding products(loans and credit cards) and free financial advisory services.Ask if lending decisions are made at the CU or through a thrid party. If the CU offers credit cards through third parties, like Elan Financial(US Bank), look else where because Elan is not BK friendly. I would also work on an emergency savings account and create a financial plan, so you are prepared to prevent what caused your bankruptcy.

 

After your CR is updated showing your old accounts are IIB, then start looking at adding a credit card. Look at Capital One(they are forgiving) and Discover for a preapproval. I burned Cap1 and got back in with them about a year after my discharge. I sarted with $1500 CLL on their Steps program and now I have the Savor card with a 24k CL. Many others were approved right after their discharge. Target appears o BK friendly now to everyone. I started with a 200 CL and now have a 6k Target MC. Synchrony is hit or miss, so you will have to do a little research. 

 

Your rebuild should be pretty easy given you are keeping your mortgage and car loan. Just remember, no late payment and good credit utilization will get you to 720+.

 

Best of luck!

 

Guyatthebeach

Message 10 of 14
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