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Bankruptcy rebuild - how good are student loans?

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Visitor

Bankruptcy rebuild - how good are student loans?

Long time lurker, first time poster here.

I am working out the best way to bounce back from my bankruptcy (Ch. 7) which will be discharged in April. My question is with about 60k in student loans, will I need to get any other credit products outside of a credit card? For example, should I consider a rebuild loan from my credit union? I am attracted to that as it seems an easy way to save money. How good is a paid on time student loan for a recovering credit score? How many other credit products should I consider and when?

Thanks 😊
Message 1 of 4
Valued Contributor

Re: Bankruptcy rebuild - how good are student loans?

I would look at Cap One, Merrick, and Discover for unsecured credit card prequalifications.


Three credit cards is a great start just don't rack up to many inquiries to get them.

Rebuild started in 2014  -  $100k+ unsecured credit in 2017  -  $250k+ unsecured credit in 2019.


10% Rotating - Discover                   5%-20% - Amazon & Lowes                6% Groceries - Amex Preferred (DW)
5% Gas & Sporting - Ducks Unl         4% Dining & Entertain - Savor           3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything Else - Flagship          1% Cancer Charity - Fifth Third          0% Finance Promos - Venture & QuickSilver

Message 2 of 4
New Visitor

Re: Bankruptcy rebuild - how good are student loans?

Your student loan is considered an installment loan.  You do not need a credit builder loan.  If you follow the previous post and get three credit cards along with the student loans; you will be fine. Once you get the cards, let them age for about a year before seeking new credit products. 

Message 3 of 4
Community Leader
Super Contributor

Re: Bankruptcy rebuild - how good are student loans?

I will agree with the above posts. School loans are installment loan, and you only need one installment reporting. You've got that.

Scores held down by umpteen INQ & New accounts
~~~BK7 d/c-08/ rebuild worked for me, but won't necessarily work for you.~~
Message 4 of 4