Ch7 discharged March 3, 2020, 618 Experian FICO, when/what to apply to rebuild?

[vaca_loca]

SO's BK was applied for Nov 2019, recently discharged on March 3, 2020. Discover's FICO® Score 8 based on Experian data is 618 after disputing some accounts previously not IIB, now reporting as IIB and adding her as an AU on a BofA card ($5k limit, open since Apr, 2009, perfect payment history, $5 balance) currently reporting the past 24 months on all 3 CB's. No other disputable errors on any of the 3 CRAs at this time. I also added her as AU on a Chase card ($10,600 limit, open since July 2003), but not yet reporting.

Unfurtunately, she has other not-IIB accounts with missed payments, specifically:

1) CapOne/Kohl's

- Open Nov 2011, Closed Oct 2017

- Times 30/60/90 dates late 5/2/1

- DOFD: Jul 2016

2) Comenity/Victoria's Secret

- Open Dec 2016 (current, still open)

- 30 day late Dec 2017

For (1), it seems perhaps hard to do a goodwill (GW) letter since it's closed, but can try. The reality here was that she has to decide between taking care of medical bills or credit card bills, and medical was more important at the time. For (2), from what I've read, looks perhaps easier to do GW since it's still open, and that was more of an 'I forgot to pay this month'.

We did the CreditOne prequal, and came back without any pre-approvals and denial, 701 / 900 score. 

CapOne prequal link lists Platinum and Quicksilver (QS)

Discover prequal was also a denial (presumably due to previous Discover credit card IIB, opened Oct 2001, closed Dec, 2015)

The other ideas so far was to attempt a credit builder loan such as Self, or the same with the startup that does the same with a *laughs* $12 loan with no upfront money commitment (KikOff)?

Where to go from here? Should we:

1) Wait it out for a bit until she's maybe 4-6 months out from BK discharge and see if the Chase card reports before proceeding any CC apps? Also can try some GW letters to CapOne/Comenity in the meantime.

2) Apply to CapOne Platinum, Quicksilver or any other particular card? If not those, perhaps a secured card? Which one if so? (She currently has ~$4200k/monthly income that she can document if needed)

3) Apply to credit builder loan like Self?

4) If 2 and/or 3, in what order?

We were ready to try the CreditOne suggestion as per the HOW TO: From BK7 discharge to 700 in 24 months or less thread, but obviously that doesn't seem like a good option. 

Would love any additional insight for her particular situation.

Happy Easter

[FireMedic1]

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@vaca_loca wrote:

SO's BK was applied for Nov 2019, recently discharged on March 3, 2020. Discover's FICO® Score 8 based on Experian data is 618 after disputing some accounts previously not IIB, now reporting as IIB and adding her as an AU on a BofA card ($5k limit, open since Apr, 2009, perfect payment history, $5 balance) currently reporting the past 24 months on all 3 CB's. No other disputable errors on any of the 3 CRAs at this time. I also added her as AU on a Chase card ($10,600 limit, open since July 2003), but not yet reporting.

Unfurtunately, she has other not-IIB accounts with missed payments, specifically:

1) CapOne/Kohl's

- Open Nov 2011, Closed Oct 2017

- Times 30/60/90 dates late 5/2/1

- DOFD: Jul 2016

2) Comenity/Victoria's Secret

- Open Dec 2016 (current, still open)

- 30 day late Dec 2017

For (1), it seems perhaps hard to do a goodwill (GW) letter since it's closed, but can try. The reality here was that she has to decide between taking care of medical bills or credit card bills, and medical was more important at the time. For (2), from what I've read, looks perhaps easier to do GW since it's still open, and that was more of an 'I forgot to pay this month'.

We did the CreditOne prequal, and came back without any pre-approvals and denial, 701 / 900 score. 

CapOne prequal link lists Platinum and Quicksilver (QS) Grab the Plat for an easy back in card. Then in 3 months you can upgrade it to a QS. Not sure about straight QS.

Discover prequal was also a denial (presumably due to previous Discover credit card IIB, opened Oct 2001, closed Dec, 2015)

The other ideas so far was to attempt a credit builder loan such as Self, or the same with the startup that does the same with a *laughs* $12 loan with no upfront money commitment (KikOff)? If there are no other installment loans. Then yes 1 will help. Self is ok. That Facebook thing came up here recently is well. No.

Where to go from here? Should we:

1) Wait it out for a bit until she's maybe 4-6 months out from BK discharge and see if the Chase card reports before proceeding any CC apps? Also can try some GW letters to CapOne/Comenity in the meantime.

2) Apply to CapOne Platinum, Quicksilver or any other particular card? If not those, perhaps a secured card? Which one if so? (She currently has ~$4200k/monthly income that she can document if needed)

3) Apply to credit builder loan like Self?

4) If 2 and/or 3, in what order?

We were ready to try the CreditOne suggestion as per the HOW TO: From BK7 discharge to 700 in 24 months or less thread, but obviously that doesn't seem like a good option. 

Would love any additional insight for her particular situation.

Happy Easter

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Yes in red and explained above. Then in 6 months try Disco again. Need some cards as her as the primary account holder. AU's are ok. But its not the same. It will take some time. Slow and steady. But Cap and Disco will be ok to get going. Not going to happen overnight. But it can be done. GW's with those 2 CCC's is next to impossible. But give it a shot. https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-...  Good Luck!

[vaca_loca]

Thanks for the advice and thread about GW tidbits. She has no other installment loans, so signed up for Self now, might wait a week or two more to see if Chase AU also reports, and try for CapOne Platinum and go from there.

[md_rebuild]

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@vaca_loca wrote:

Thanks for the advice and thread about GW tidbits. She has no other installment loans, so signed up for Self now, might wait a week or two more to see if Chase AU also reports, and try for CapOne Platinum and go from there.

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You might try a credit union.  I re-established with NFCU (had an dormant account there for about 15 years) and opened up a checking/savings and then got a secured credit card ($300).  PIF each time I bought something and in 5 months, got it unsecured and a boost to a $2K limit.

Capital One Platinum is a good place to start too...I started with them ($2K limit) about a month after the NFCU card, and after 5.5 months I moved to upgarde to a QS and instead they just gave me a QS card in addition to the Plat.

Just be patient and know that you have to start small but you'll get rewarded soon if you follow the steps..

[vaca_loca]

I'm a NFCU member but she isn't. From what I've read I can sponsor her as a household member, but don't really have proof of her being at the same address currently, and I suspect they might ask.

I also saw others recommending SDFCU secured or TD Bank secured. Those could be options in lieu of Capital One Plat.

Another reality we are debating is that even though her discharge papers show that she wanted to assume her current Kia Motors finance lease, apparently her bk lawyer neglected to tell her about the agreement they had sent, because it was 'sketchy' and 'he rarely advised clients to sign them' We have not seen the agreement yet but requested he sent it over. I'm assuming it might be too late to follow that course post-discharge. (State is MA, if relevant)

It was a relatively new lease done pre-bk (Oct 2019) given her previous car was unreliable. She can make the payments no issue even with the current COVID crisis. She's more so afraid to lose the car and the payments she's put on it so far.

I've read some other threads here that it's not likely that a lessor will repo if payments are current, though.

If anyone else has gone through the same (not reaffirming a lease with Kia Motor Finace) would be interested in hearing about the experience, especially at the end of the lease.

From what I understand, because it's IIB, she could effectively stop paying at any time to have the car taken away with no recourse to her credit.

The lease didn't have a great interest to begin with so wondering what the better approaches would be years from now. I'm assuming that whenever she does return it she wouldn't be liable for mileage, so maybe the best approach is doing a ride through and when she can actually get a lease or auto loan with favorable terms go with that. Not sure if it would make any sense to pay in full at the end of the lease term assuming that option is available.