Credit Score Rebound?

[ToofDoc]

So I had my Chapter 7 discharged in October 2019 and of course my credit scores tanked months that led up to CH7 down to 490s - low 500s. Then when I logged onto my CreditKarma last week (3 months after my CH7), my credit scores shot back up above 700s for TU and EQX!? Looked at my EXP, only 573? Why do you guys that is?

Same number of accounts remain and same amount of debt on all 3 credit bureaus. Only accounts I have on my reports are all student loans and one AMEX credit card ($3,000) as an authorized user with credit utilization at 100% (no credit left). Once I pay this off, my utilization will go down to 0% which means my scores will increase even more.

Any idea how my 2 out of 3 credit scores went up so high and so fast after CH7? Has it happened to any of you also within 3 months? I was fully prepared and still am to have crap credit for at least 5+ years but this is really a pleasant surprise!

EQX 724
TU 721
EXP 573

[Jnbmom]

You need to get your actual FICO scores as CK are vantage scores and can be very different .

If you BK was discharged in October 2019 yes your scores will rebound some after discharge but I don’t see it being that high so soon .

If you got Experian score that is your FICO others are probably about the same .

[ToofDoc]

That’s what I figured...there’s no way that my credit score would be that high in the 700s already?!

[Tuscani]

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@ToofDoc wrote:
That’s what I figured...there’s no way that my credit score would be that high in the 700s already?!

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Correct. Mid to upper 500s is likely more accurate. Report back once you find out. You can pull them here or do the $1 trial at Experian. 

[ToofDoc]

Yes, just as we all had expected with only 4 months after CH7 discharge what my scores should be.  To learn the reality truth, I signed up for MyFico Advantage monthly subscription and saw my real Fico Score 8 scores

EQ 594

TU 609

EX 573

[twono]

It looks like you need a couple more cards.  Everyone will tell you to go to Cap One to see if you prequalify.

You need 3 cards reporting to get the most out of FICO....and an installment loan, which you have with the student loans.

I'm 4 months out from DC, and i'm 611-639 FICO 08 scores.

[ToofDoc]

Yes! Just signed up with OpenSky secured card for $1,000. They don’t do a credit inquiry check AND they’ll report to all three bureaus. Did a simulation on MyFICO with opening a new CC line, my scores should jump up 20-30 points with each bureau.

Did research on CapitalOne secured card, read that they do a hard inquiry when applicants apply and they don’t approve everyone even though it’s a secured card. Especially those of us with bankruptcy, CapitalOne will not likely approve us for a secured card account. People say that CapitalOne secured card is more tailored to those with no credit and wanting to establish credit than for those has a bad credit history and want to rebuild.

[twono]

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@ToofDoc wrote:
Yes! Just signed up with OpenSky secured card for $1,000. They don’t do a credit inquiry check AND they’ll report to all three bureaus. Did a simulation on MyFICO with opening a new CC line, my scores should jump up 20-30 points with each bureau.

Did research on CapitalOne secured card, read that they do a hard inquiry when applicants apply and they don’t approve everyone even though it’s a secured card. Especially those of us with bankruptcy, CapitalOne will not likely approve us for a secured card account. People say that CapitalOne secured card is more tailored to those with no credit and wanting to establish credit than for those has a bad credit history and want to rebuild.

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Did you go to the capital one prequalify link?  A CapOne pre-qual offer is as good as gold.   An unsecured card is generally better because it can grow into bigger/better things.

Generally you want a secured card that will graduate into an unsecured card.  But i realize the 'draw' to the Open Sky because of the NO HP aspect of it.

An extra inquiry here and there isn't going to hurt you in the big picture.  It only dings your score by a point or 2 if any.  Depends on what 'bucket' you're in.  1-3 , 4-7, 5-9 etc...., and an inquiry has no effect on FICO after 1 yr.  Don't focus so much on inquiries....You gotta break an egg to make an omelette right?

I think you're a little mis-informed about CapOne.  CapOne is the #1 BK friendly credit card company out there.  They forgive everybody from my research.  People that burned them for tens of thousands, get back in.  I burned them for over $30k, but they did NOT close my $3000 KOHLS which is financed through CapOne.  I may or may not try to get back with them in a few yrs.

Congratulations and good luck

[Anonymous]

I burned CapOne and Credit One in Ch 7. Both turned me down. Both responded with a “unable... due to previous charge offs...” I have already set up my NFCU acct and will be making my deposits soon.

My local credit union requires 6mths for secured card.

[recoveringfrombk7]

Capital One secured cards do not graduate. There are better options (NFCU, Discover, TD, Citi, BoA, etc). But, one could also take the path of SP secured cards that won't graduate (OpenSky, Green Dot) and just cancel them in 6mos-1yr when they are able to get unsecured cards if the more prime secured cards are not available.

You can also check out Merrick Bank prequal. They have a good unsecured starter that automatically doubles its limit.