Credit Score Plateu

[Anonymous]

Hi everyone it's been a while since I last posted and could use some advice. My CH7 BK discharged in 6/2019 and my scores after discharge were (EQ: 644, TR: 615, and EX: 632). I've sincce opened a several CC's: NFCU CashRewards - $2k, Discover - $13k (graduated fr $11k), CO: Platinum - $1.3k (graduated from $1k), CO: Savor - $10k, and Penfed: Power Cash Rewards - $7.5k; for a total CC limit of $33.8k. I generally pay all cards off every month and occasionally carry a small balance on one CC. Last year, I took out a loan via NFCU that borrowed against my savings for $1.5k (which I paid off in full this month). All my CC's have a zero balance and my current scores are EQ: 712 (FC 9), EX: 691 (FC 8), and TU: 680 (FC 8). My scores for EX and TU have seemed to plateu and don't move often and when they do it's by one point. I am coming up on the 3 year anniversary of my BK discharge and would like to buy a home, however I am trying to do everything to increase my scores for a better chance at approval. What do you guys think will help????

[Mjhall85]

Well you're doing everything right, Do you have any open installment loans ? What are you rmortgage scores ? Just remember to let one card report a small balance then pay it off, if all are zero it hurts your score.

[SouthernCredit]

I agree that you seem to be doing everything right. You are only 3 years post BK. It may just take some more time.

[Guyatthebeach]

Johan1,

You are actually in very solid place financially for being 2.5 years after bankruptcy. I remember when I was at this stage, I was still having to fight with recons to get credit cards and loans approved. Don't worry, you need to let your current accounts age and let all those HP's fall off. You are going to continue to use improvement as time goes by.

Here are a few things I would do:

1. Don't open any new credit cards or loans unless having them will benefit you. 
2. Since you are planning to buy a home, why not schedule an appointment with a loan officer at NFCU or wherever you primarily bank.  Tell them what you want, and listen to their recommendations. 
3. Instead of taking out another installment loan, think about getting a PLOC instead. I know mine from Navy Federal and SCSCU report positive payment history every month and I've never used them. I have them to prevent any bounced checks and declined debit card transactions.

4. Start saving for that down payment! 

Keep doing what you're doing. You're definitely in the right direction!

Guyatthebeach

[Anonymous]

Yes, I took out a personal loan six months ago from NFCU for $2300. I paid it off earlier this month and am waiting for it to appear PIF on my credit report. I'll continue to let a small balance report on one of my CC's. Thanks!!

[Anonymous]

Guy,

Sounds like a good idea I will look into PLOC with NFCU and use as overdraft protection. I'll also meet with a loan officer and go from there. Thanks for your suggestions!

[FireMedic1]

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@Anonymous wrote:

Yes, I took out a personal loan six months ago from NFCU for $2300. I paid it off earlier this month and am waiting for it to appear PIF on my credit report. I'll continue to let a small balance report on one of my CC's. Thanks!!

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Grab a SecuredSavingsLoan from NFCU. Has to be over $3000. I did $3025. Once it post then pay it down to 8% and let it ride. That is if you dont have any other open loans. Theres 30 points waiting if no other loans are on your reports. Should have kept the other loan open. And never have all cards report $0 balance. Thats a 15-20 +/- loss.