Chapter 13 Rebuild

ashjt2011 · ‎11-20-2022

Hi All,

About 9 years ago, I had a Ch. 7 discharge. When I was 16 my parents added me to several credit cards as a co-signer. They soon after divorced, had huge balances and I was left with the responsibility upon turning 18 to repay the debts, as they filed bankruptcy. After I filed, many of you told me to dispute the situation, as I was added when I was under 18, but it was to late as it was already discharged.

Fast forward 9 years and I got myself in my own trouble. I divorced 4 years ago (2018) and was left with a mortgage and a lot of bills to suddenly pay on my own and the debt just snowballed as I was using debt to pay other debt. I did eventually increase my pay significantly (30k+), get a roommate to bring in additional cash, but it was a lost cause. Starting end of 2021 after a lot of the COVID protections expired, I started getting lawsuits and knew it was about time. Earlier this year I inquired about bankruptcy and was told my income was to high to file as Ch. 7, so Ch. 13 it was.

Filed in August, had my 341 and have my confirmation hearing on December 2nd. The rebuilding begins, and since you've all been so helpful, I figure my journey can be helpful to all as well.

Starting Scores on MyFico:

554 Equifax

573 Transunion

526 Experian

I spoke to my Ch. 13 lawyer and she said there was nothing prohibiting me from new debt, so I decided to start the rebuild early. Here is what I've done so far:

Applied and Approved For:

US Bank Cash+ Secured ($400)

First Premier Unsecured ($700)

CreditOne Unsecured ($400)

Self Credit Builder Loan ($48 Monthly Payment, 550 paid in 1 year)

I have the mortgage still but it was Modified during COVID, so I am hesitant to do the paperwork to add it back. Especially after the mortifying experience I've had with the modification.

And, I know this is going to be unpopular with the group, I signed up for Lexington Law. Just started 2 weeks ago and they sent some initial letters. One item was removed from my report already and I'm just hoping to have them remove some late payments.

Equifax on 11/15 reported the 1 item removed and my score went up 25 to 579

11/19 - Experian reported new account for First Premier and initial $78 dollar balance and my score went up 35 to 561. Good news on my worst bureau.

Current Scores 11/20/2022:

570 Equifax

575 Transunion

561 Experian

I will keep you all updated! Now it's time for some gardening, as I've obtained the 3 revolving lines recommended and the installment loan recommended.

Jnbmom · ‎11-20-2022

Good luck on your rebuild . You have 3 cards and a SSL . Garden and use your cards and pay in full .

And yes you won't get kudos for using them . They just bombard the bureaus with frivolous disputes you may get lucky here and there a lot of times they make it worse but nothing you can't do yourself for FREE and you could be saving that money to put towards an emergency fund which all members should do especially new rebuilders .

EXP 780 EQ 791TU 795

FireMedic1 · ‎11-22-2022

Only need 1 installment loan which is your mortgage. You can shut down Self. Step by step. Rebuild 2.0 Congrats!

ashjt2011 · ‎12-04-2022

Hi All,

What can anyone tell me about the Upgrade credit card? They show me pre-approved for $500. No annual fee and 1.5% cash back. This would certainly be better than one of the credit builder cards I have, which I could cancel right away - such as CreditOne.

Any negatives to Upgrade?

Do credit lines grow with good management?

MyFico scores as of 12/04:

611 Equifax

597 Transunion

561 Experian (On a side note, I keep trying the Boost function, but somehow they are pulling an old address from my bank which doesn't reflect on the bank side, so it keeps telling me I have to update my bank address before I can do anything. Plan on calling Experian this next week)

FLLGuy · ‎12-06-2022

congrats on your rebuild and see the numbers trending the right direction.

I know many on here will "poo-poo" CreditOne but it has a purpose in the subprime space for people in your situation just like me and many others that are or have gone through the rebuild process. Credit One is the necessary evil along with other factors if not by Credit One then by others offering low limits, high interest rates or secured options only. Unfortunately, it's the draw of not so great options we have to manage through --------- the key to remember this is temporary until your credit improves over time with responsible use.

If you don't have a specific need to and just kicked off your rebuilt, keep the Credit One credit card for now. I don't know enough about Upgrade but I believe this is a loan in form of a credit card, was too complicated for me to do anything unique so I ignored it all together. If you want to pick up another rebuilder card try for Mission Lane possibly even open secured card options with NFCU or Discover. OLLO by Ally is another options that may pop up on Credit Karma or Experian recommended cards. Also, the booster score thing from Experiance is wonky at best and always complained to me after 60days not finding certain payees so i gave up on it.

best wishes on your choices - i'm sure others on here will provide other recommendations - just remembr you only need enough to get you scoring for a solid year before other or better options open up for your with good behavior.

ashjt2011 · ‎12-27-2022

Still haven't received my CreditOne or First Premier Cards. I called 3 weeks ago on both and said they would resend. Still nothing.

Have been using my secured card and have let a 20 dollar balance report. Otherwise I've been paying off weekly and being cognizant of the statement date.

6 negative items have been removed from my reports in the first month of Lexington Law. I would say that's decent.

Scores as of 12/27/2022

628 Equifax

601 Transunion

564 Experian (this refuses to move)

SweetCreditObsession · ‎12-27-2022

@ashjt2011 wrote:
Still haven't received my CreditOne or First Premier Cards. I called 3 weeks ago on both and said they would resend. Still nothing.

Have been using my secured card and have let a 20 dollar balance report. Otherwise I've been paying off weekly and being cognizant of the statement date.

6 negative items have been removed from my reports in the first month of Lexington Law. I would say that's decent.

Scores as of 12/27/2022

628 Equifax
601 Transunion
564 Experian (this refuses to move)

Congratulations on your latest win! Rebuilding takes time and putting in the work can be hard. Keep up the good work.

(+102) |

(+106) |

ashjt2011 · ‎06-10-2023

Update for June 2023

Used Lexington Law for the last 6 months and they've removed 20 negative items. I went to cancel as they've slowed down, but they gave me over half off for 6 more months so I will see if they make any leeway in the next couple months, otherwise they are gone.

Have been using my cards and paying down each month to 0. I let one report at 10 dollars.

No credit line increases yet... unfortunately.

Scores:

670 Equifax

649 Transunion

627 Experian