Yes, buying a house 2 years after BK discharge (not eligible to get an FHA Case # until the 2 years post discharge date)
Ideally (for FICO scoring) you'll have 1 installment loan and 3 revolving accounts...If your current auto loan is upside down, then I might suggest letting it go in the BK. In addition, if you keep the vehicle but don't reaffirm, then it will cease reporting. The upside to keeping and not reaffirming is you can let it go back for any reason and it won't negatively impact your credit beyond the reporting of "included in BK" remarks, etc.
Regarding cards, I'd recommend Cap1 (as long as their charge off or BK filing, whichever came first was 12 or more months ago) as they are a great rebuilder card. I'd only recommend going to unsecured cards and not worry about the APR since it's HIGHLY HIGHLY recommened to NEVER carry a balance. If you can't get pre approved for any unsecured cards, then I'd recommend the secured card route. This can be done via Cap1, or better yet a credit union. Most local smaller CU's have these great products as well as national CU's like Navy Federal, etc.
If you decide to keep the car, but NOT reaffirm, and still wish to optimize your scores, you can get what's referred to as a SSL (share secured loan) from a local credit union or national CU like Navy Federal. Ideally, you'll get a 2-3 year loan so that it will still be reporting when you app for your mortgage.
Hope this helps!
@DebtStinks wrote:
Regarding cards, I'd recommend Cap1 (as long as their charge off or BK filing, whichever came first was 12 or more months ago) as they are a great rebuilder card. I'd only recommend going to unsecured cards and not worry about the APR since it's HIGHLY HIGHLY recommened to NEVER carry a balance. If you can't get pre approved for any unsecured cards, then I'd recommend the secured card route. This can be done via Cap1, or better yet a credit union. Most local smaller CU's have these great products as well as national CU's like Navy Federal, etc.
I'm inclined to split the hair even further. If you cannot get a fee free unsecured card with a high enough limit to make the card useable, then I highly recommend you opt for a high limit secured card.
@1prettyorchid It will likely still show on your credit report, but you'll likely lose any positive history associated with the payments you've made.
The creditor will likely:
1) Report your account as "Included in Bankruptcy" or something along those lines.
2) Remove any previously reported payment history.
3) Cease any further reporting of the account.
Unless you reaffirm, in which case it would (after discharge of your BK itself) only be modified by stating "Debt reaffirmed in BK" or something along those lines in the remarks section and all history since account inception will be reported...sometimes excluding the automatic stay period until discharge of other debts. You can elect to continue making payments, but likely would not be required again until your BK is discharged and the reaffirmation agreement is in place.
I hope this helps.
