Building credit after chapter 7

[Anonymous]

Sorry if this is redundant, but I searched and couldn’t quite find an answer.
I just filed Chapter 7 and expect the discharged in about 3 months. I had to file because of poor choices and irresponsible credit card use plain and simple. I have a family now and am 100% committed to using this fresh start wisely and my goal is to buy a house (using a VA loan) in about 2 years.

My question is: I have $15,000 in student loan debt and $10,000 left on a car loan. Both debts will remain after the discharge. Will making on-time and higher than minimum payments on these two debts be enough to rebuild my credit? Would it also be necessary to open a secured card, or would these two credit lines suffice?
Thanks!

[pizza1]

Hi, and welcome to the forums,!!

Yes, making on time payments is KEY to rebuilding. You need positive payment history after a BK reporting. There is no need to make more than the actual required payment unless you want too.

As far as rebuilding, you need a good mix of credit, which DOES mean CC's. I wouldn't apply for any cards until you receive your official DC, and your credit reports reflect discharged in the public records section.

Next, which lenders/CC's did you burn in your BK. Need to know that first before we tell you who to try with for a CC...

[Anonymous]

Thanks for replying! I burned the following:
Capital One
Credit One
EBay/Synchrony
Merrick Bank
USAA
Barclays

[pizza1]

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@Anonymous wrote:
Thanks for replying! I burned the following:
Capital One
Credit One
EBay/Synchrony
Merrick Bank
USAA
Barclays

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mmmm, ok. Once youre discharged, I would try the prequal page at Cap1 (they are most forgiving), and try for unsecured first.  If they offer you a congrats, and a SET apr on a card, probbaly the Plat and Quick silver, then go for it. If not, apply for secured.

Id also try for Discover prequal page as well, see if they offer you anything.  If not, apply for their Secured card. It will graduate. 

Forget Credit One, you dont need them or want them.

Forget USAA for at least 5-7 yrs, wont happen for unsecured. In a year, you "might" be able to get a secured card with them. Just forget them right now. 

Barclays...forget them too for at least 6-12 mo. They will want to see 6-9 months of postiive payment history on at least 2 cards first reporting, before they will think about it. Plus you burned them. 

Synch, you wont get a major CC with them for awhile, but once your TU FICO scores start to hit 620+, then you might be able to get a store card.  Get one you would actually use like Walmart or Sams. 

[Jnbmom]

Barclays was included in my BK 2005, so 13 years later I am still blacklisted.

[Anonymous]

Oh wow. Well it seems like you successfully rebounded after your BK. Any general advice you could share with me? I’d greatly appreciate it.

[Anonymous]

Thank you so much! Any other advice?

[Shooting-For-800]

I assume your are not upside down in your car?

Do not fear credit cards just because you had problems.

You will need them to build your credit properly.

After BK, check prequal pages for Cap One, Merrick, and Discover UNsecured.

All three are BK friendly to some extent and do not take advantage of their clients.

Use them and pay them off WEEKLY until you get comfortable with them again.

That is all you need to get to 700 within 2-4 years.

It gets better!  GL!