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Chapter 7 Rebuild Questions

CE313
New Member

Chapter 7 Rebuild Questions

Hey guys, Ive filed and had my court meeting already. I just have a few questions on what to do after my discharge. #1 is a Secured Card OK? I see some posts that say get Cap One but I burned them in the BK. So I may only be able to go the secured route. If so, whats a good one to apply for, and should I put the max limit on it (usally $2000 on most). #2 Is Credit One bad to get? Asking cause with the low limits I figure they are quick to approve. Also do they ever increase limits? #3 Should I get an auto loan to boost my score? I have a car, but I could use a better one, cause I put 100 miles a day on my car going to work.

 

Thanks in advance for any help. Im also going to be atively reading these forms.

Message 1 of 8
7 REPLIES 7
capabk
Frequent Contributor

Re: Chapter 7 Rebuild Questions

Three threads you may find helpful (if you've not been to them already). These have been like my BK7/rebuild Bible so far. I know it's a lot of reading, try to bear with it.

 

1. You don't necessarily need the specific cards named, I don't think, it's the methods/timelines/procedures being offered: http://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/m-p...

2. BK friendly cards may help you. Search the thread to see whether Cap1 is friendly to those who burned them, or even ask. I garnered from info in the thread that BoA is not likely for me. Haven't had the chance to search on Chase yet. http://ficoforums.myfico.com/t5/Bankruptcy/Bankruptcy-Friendly-Credit-Cards-Pt-2/td-p/3999737 

3. Secured Share Loan technique: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

 

Why I link the third: imo I would not open an auto loan for credit reasons. I would only open an auto loan if both of the following are true: 1) you need a car 2) you can't pay for it outright (most of us, right?) Also, from what I'm reading on these forums (anyone feel free to correct me), much of the point of having an open installment TL in your credit mix is having an OPEN installment TL (in additional to the util). What are you going to do in a few years when your car loan is done? Get another new car you don't necessarily need at that moment? 

 

Don't go getting things you don't actually have necessity for. Now, if you do - great. But if not - the SSL technique is right there waiting for you, costs next to nothing and you can get a new one when the old one is up.

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
Message 2 of 8
SteelerNYC
Valued Contributor

Re: Chapter 7 Rebuild Questions

CapOne sometimes lets folks right back in after BK, so you will want to give their prequal a shot. (It's usually pretty solid if it recommends a card.)

 

I hear good things about Discover secured and NFCU secured. Secured cards will definitely help your rebuild. If you go this route, just make sure it's with a BK friendly insitution and that it's a card that will go unsecured after a while. Seen a lot of folks stuck in cards that won't go unsecured that they end up having to cancel.

 

I don't hate Credit One. First card of my rebuild . . $1500 SL that was $2450 when I closed it two years later. There are fees. Pay attention to policies such as availability of payments. Make your payments on time and double check that they went through. Those few things and you shouldn't have any issues with thm.

 

I had no interest in starting secured and CreditOne did the trick for me. Pretty happy with where I'm stitting today and things are getting better Smiley Happy

 

Good luck!

 

Edit: and like capa says above, no need for a new car loan just to build your credit. Drive the wheels off the current one!

Ch 7 Discharge May 2015
Discover/Target/NFCU CLOC/NFCU More Rewards Amex/NFCU Platinum/PenFed Power Cash Rewards/PenFed Pathfinder Visa/Citi Costco Visa/CapitalOne SavorOne/Apple Card - $139,100 total revolving, 21% utilization
3.25% mortgage July 2020, $20k used Auto Loan October 2020, $20k PenFed Personal Loan Dec 2020
687/683/673 EX/EQ/TU w/ 5/6/6 INQs as of Jan 2021
Spending 2021 in the Garden
Message 3 of 8
NormanFH
Super Contributor

Re: Chapter 7 Rebuild Questions


@SteelerNYC wrote:

CapOne sometimes lets folks right back in after BK, so you will want to give their prequal a shot. (It's usually pretty solid if it recommends a card.)

 

I hear good things about Discover secured and NFCU secured. Secured cards will definitely help your rebuild. If you go this route, just make sure it's with a BK friendly insitution and that it's a card that will go unsecured after a while. Seen a lot of folks stuck in cards that won't go unsecured that they end up having to cancel.

 

I don't hate Credit One. First card of my rebuild . . $1500 SL that was $2450 when I closed it two years later. There are fees. Pay attention to policies such as availability of payments. Make your payments on time and double check that they went through. Those few things and you shouldn't have any issues with thm.

 

I had no interest in starting secured and CreditOne did the trick for me. Pretty happy with where I'm stitting today and things are getting better Smiley Happy

 

Good luck!

 

Edit: and like capa says above, no need for a new car loan just to build your credit. Drive the wheels off the current one!


I'm in the same position here as well. Just got my discharge Aug 2, and looking to start rebuilding. I have an account with SDFCU, and I just transferred $300 into my share savings account. I plan to app for the share secured VISA as soon as the transaction completes, and will transfer some more funds ($500) to do a share secured loan next week. In six more months I should be eligible for Cap One, and I also will try for the Discover Secured. Right now my scores are 553/553/495. Hoping to hit 600 before next summer. Baby steps....

 

Honestly, I do NOT want to have any business dealings with CreditOne.  They are a wholey owned susidiary of Sherman Capital, who is a notorious junk debt buyer whose CA's often abuse the collection system (and debtors). I will not willingly put money into the coffers of such a company. I got no problem with starting secured, even if it does not graduate. They (Credit One) are not an account I would keep beyond a year anyway, so to me they are no more helpful, scorewise, than a secured card.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 4 of 8
C7recovering
New Visitor

Re: Chapter 7 Rebuild Questions

Credit One and Access Visa approved a few weeks after discharged.  Also purchased a used car!  This is just a start to rebuilding credit.  Hope this helps others see the light at the beginning of a new road....I'll post additional progress as we encounter them.  Oh ya, do not apply for credit or loans if you added the creditors to your bk7. 

Message 5 of 8
NormanFH
Super Contributor

Re: Chapter 7 Rebuild Questions


@CE313 wrote:

Hey guys, Ive filed and had my court meeting already. I just have a few questions on what to do after my discharge. #1 is a Secured Card OK? I see some posts that say get Cap One but I burned them in the BK. So I may only be able to go the secured route. If so, whats a good one to apply for, and should I put the max limit on it (usally $2000 on most). #2 Is Credit One bad to get? Asking cause with the low limits I figure they are quick to approve. Also do they ever increase limits? #3 Should I get an auto loan to boost my score? I have a car, but I could use a better one, cause I put 100 miles a day on my car going to work.

 

Thanks in advance for any help. Im also going to be atively reading these forms.


You don't need to go Credit One (Predator One). Open an account with SDFCU, PenFed, NASAFCU, or DCU. All are fairly easy to get into. Deposit 500 in savings. App for secure Personal Loan. Place loan proceeds back into savings, and app for Secured Credit card. Lather, rinse, repeat with second credit union (CC only, not PL). Wait six months, app for Capital one. If they decline with no credit pull, wait another six months.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 6 of 8
CE313
New Member

Re: Chapter 7 Rebuild Questions

Thanks for all the help guys. Should have my discharge letter in about a month, then ill get started. one more quick thing. Has anyone actucally gone through a credit repair company to dispute items? or is it best to handle that ourselves? If so, whats a good one?

Message 7 of 8
NormanFH
Super Contributor

Re: Chapter 7 Rebuild Questions

Handle it all yourself. You have many more tools at your disposal than they do.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 8 of 8
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