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Help w/ Rebuilding Plan (post-bk)

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Frequent Contributor

Help w/ Rebuilding Plan (post-bk)

Hello everyone, I've been lurking and learning a lot.
I'd like to know if you could review my rebuild plan? I know much of my background is bk, but my plan is really just credit rebuilding, thus posting here. (Move if needed.)

Background: I always had great credit, in fact 2015 I was at 794EX (through PSECU).
The problem is that I am disabled (but working ft), and in late 2013 I separated from my ex and we finalized our divorce a year later. Amicable. However, losing that source of day-to-day support really blew up my life and I've still never recovered (currently in a physical rehab program - this is my year to fix my life, apparently). I started making minimum payments in early 2016 and really lost control that summer when, all at the same time: a drunk driver totaled my car on the street, my cat came down with cancer and died expensively, and I got very sick and missed a bunch of work. I haven't made a single payment since late summer '16. I filed Chapter 7 June '17. I have now had my 341 meeting (just a couple weeks ago) and am waiting on my discharge date, assuming no objections. I will be home free as of 10/10.

FICO8 scores upon Ch7 file: 494EX, 486EQ, 483TU. I know.
FICO8 scores as of yesterday: 557EX, 570EQ, 501TU.
I almost cried when I saw those. Tears of happiness. Things are getting better. However, they may get worse: My reports are still showing some of my cards open, and I'm going to lose those cards if the discharge goes thru. So my AAoA will get wiped out and my scores will drop, no? (My AAoA is anywhere from 4-11y depending on bureau.)

So here is my rebuild plan. Let me know your thoughts. There are also a few questions below. 

 

1. Clean up credit report (as ruthlessly as possible)

2. EITHER:

2a. "reopen" PSECU checking/savings (if poss) OR

2b. Alliant CU checking/savings.

(PSECU was one of my cards burned in BK and I'm still deciding whether or not to beg them to consider keeping my currently-possibly-still-open membership open)

3. Alliant SSL $500.

4. CCs (this is in part based on what I'm projecting my savings to look like in the next 6-12mo, God/fates hoping etc.):

4a. Capital One - either Platinum or Secured card, whichever seems like a better chance at the time. Take what I can get

4b. In 6 to 9 mo, Discover It secured card (unless my score has magically rebounded, then regular It)

4c. Likely just after that, another card of my choosing (I have time to research.)

 

I only had three cards pre-bk (yes, and I still bk'ed) and prefer to keep it to 3 now too. Low and slow.

 

Questions...

 

A. Why the rec for CreditOne cards? Is it for ease of approval? I don't see any particular benefits, and the post-bk plan that gets linked around here mentions closing the card (which would be a hit on your credit, no?)
B. SCT... there is a Comenity card I might go for as my 3rd card which is the Giant Eagle card, but how in the world would I "SCT" that?
C. Should I avoid asking PSECU to keep me on as a member? Pros/cons to this? Signs point to my membership is still open, but I had over $20k in debt with them that is going to get wiped. I don't think they're going to be keen on me. But all I want is vanilla check/savings. Cross-collateralization means I will be avoiding any credit products with them ever again.
D. Should I wait longer for the 2nd and 3rd cards due to when HP stop counting on your report? At least 1y? (That's the rule - correct? Stays on report 2y, but lenders don't count after 1y.)
E. Is it generally better to take SSL first, wait a few months of reporting, then try for first CC? Or do them both at same time to get them both reporting asap?
F. If I qual for a nonsecured card do I need to bother with secured card? Go for the regular card - right? e.g. prequal site right now offers me Cap1 Platinum. Discover offers me a range of APRs for regular It, which I take it means I probably don't qualify right now. (doesn't even mention secured).

 

Thank you all for any guidance you can offer. I really appreciate all the knowledge and perspective I've gained from you all so far!

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
5 REPLIES 5
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Community Leader
Super Contributor

Re: Help w/ Rebuilding Plan (post-bk)


@capabk wrote:

Hello everyone, I've been lurking and learning a lot.
I'd like to know if you could review my rebuild plan? I know much of my background is bk, but my plan is really just credit rebuilding, thus posting here. (Move if needed.)

Background: I always had great credit, in fact 2015 I was at 794EX (through PSECU).
The problem is that I am disabled (but working ft), and in late 2013 I separated from my ex and we finalized our divorce a year later. Amicable. However, losing that source of day-to-day support really blew up my life and I've still never recovered (currently in a physical rehab program - this is my year to fix my life, apparently). Im sorry about the life changes, but hopefully things will start to look up soon. I started making minimum payments in early 2016 and really lost control that summer when, all at the same time: a drunk driver totaled my car on the street, my cat came down with cancer and died expensively, and I got very sick and missed a bunch of work. I haven't made a single payment since late summer '16. I filed Chapter 7 June '17. I have now had my 341 meeting (just a couple weeks ago) and am waiting on my discharge date, assuming no objections. I will be home free as of 10/10.

FICO8 scores upon Ch7 file: 494EX, 486EQ, 483TU. I know. Dont worry, a lot of folks have scores in the 400-500's pre-filing, I did as well. 
FICO8 scores as of yesterday: 557EX, 570EQ, 501TU.
I almost cried when I saw those. Tears of happiness. Things are getting better. However, they may get worse: My reports are still showing some of my cards open, and I'm going to lose those cards if the discharge goes thru. So my AAoA will get wiped out and my scores will drop, no? (My AAoA is anywhere from 4-11y depending on bureau.) You need to make sure that the accts that were IIB (included in BK), reflect on your CR $0 bal/ IIB. They will be closed eventually by the lender anyways. 

So here is my rebuild plan. Let me know your thoughts. There are also a few questions below. 

 

1. Clean up credit report (as ruthlessly as possible) yes. Wait 30 days to pull your report, and give the lenders times to report as they should, see above. 

2. EITHER:

2a. "reopen" PSECU checking/savings (if poss) OR Forget PSECU...you burned them, I doubt they want to bank with you, and you certainly wont get credit with them for a very long time. 

2b. Alliant CU checking/savings. This is a good alternative.

(PSECU was one of my cards burned in BK and I'm still deciding whether or not to beg them to consider keeping my currently-possibly-still-open membership open)

3. Alliant SSL $500. yes

4. CCs (this is in part based on what I'm projecting my savings to look like in the next 6-12mo, God/fates hoping etc.):

4a. Capital One - either Platinum or Secured card, whichever seems like a better chance at the time. Take what I can get

4b. In 6 to 9 mo, Discover It secured card (unless my score has magically rebounded, then regular It)

4c. Likely just after that, another card of my choosing (I have time to research.) I would wait until your reports reflect the BK as Discharged, and your accts reflect a $0 Bal/IIB before you try anything. 

 

I only had three cards pre-bk (yes, and I still bk'ed) and prefer to keep it to 3 now too. Low and slow.

 

Questions...

 

A. Why the rec for CreditOne cards? Is it for ease of approval? I don't see any particular benefits, and the post-bk plan that gets linked around here mentions closing the card (which would be a hit on your credit, no?) Dont go Credit One. Stay away from them. Alot of folks get them right away becuase they think they have no other options. If you jsut wait and be patient for a month or two after your official discharge, youll have Cap1 unsecured. 
B. SCT... there is a Comenity card I might go for as my 3rd card which is the Giant Eagle card, but how in the world would I "SCT" that? What is Giant Eagle? 
C. Should I avoid asking PSECU to keep me on as a member? Pros/cons to this? Signs point to my membership is still open, but I had over $20k in debt with them that is going to get wiped. I don't think they're going to be keen on me. But all I want is vanilla check/savings. Cross-collateralization means I will be avoiding any credit products with them ever again. I would find another place to bank
D. Should I wait longer for the 2nd and 3rd cards due to when HP stop counting on your report? At least 1y? (That's the rule - correct? Stays on report 2y, but lenders don't count after 1y.) I would get your 3 cards within a month so they age together. 
E. Is it generally better to take SSL first, wait a few months of reporting, then try for first CC? Or do them both at same time to get them both reporting asap? You can do them both at the same time. 
F. If I qual for a nonsecured card do I need to bother with secured card? Go for the regular card - right? e.g. prequal site right now offers me Cap1 Platinum. Discover offers me a range of APRs for regular It, which I take it means I probably don't qualify right now. (doesn't even mention secured). If you qualify for non-secured, I wouldnt do secured. 

 

Thank you all for any guidance you can offer. I really appreciate all the knowledge and perspective I've gained from you all so far!

 

This is what Id do...What until your reports reflect the BK as "Discharged", then jump on Cap1 prequal, and if it has a set apr/offer. Take it! If its Plat...your starting limit would be $300-$3k...just depends. Get your SSL too. Then come back to the forums and tell us your progress....reports, scores, if youre able to get your cap1 unsecured plat/SSL, etc...we will advis more from there.  Make sure your reports are reporting correctly too in the meantime. Good Luck! Smiley Happy

 

 


 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 2 of 6
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Community Leader
Super Contributor

Re: Help w/ Rebuilding Plan (post-bk)

I just looked up Giant Eagle....its a supermarket? They have the Fuel card? It won't be a SCT...95% sure of that. Its like applying for a Q-Trip gas card. Id wait to make sure your reports are reflecting correctly and your scores are at least 600 before attempting it.

It won't take that long to get there in scores either..Once discharged, and your reports start to reflect that, you'll start to see changesSmiley Happy

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 3 of 6
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Frequent Contributor

Re: Help w/ Rebuilding Plan (post-bk)

Thank you SO much for the kind and thorough answers! Trust me, I'm taking notes :-) 

 

The Giant Eagle ("gine iggle") card is about the only Comenity card I would actually use, but you can't SCT it... so oh well. I've looked at Synchrony cards too but I burned Synchrony CareCredit in the bk. (Thinking of offering to pay back after bk is through, but it would take me some time. Maybe set up payment plan? Or would that be $ down the toilet?) I'll keep researching, and hope I have time for scores to rebound.

 

Thanks again,

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
Message 4 of 6
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Valued Contributor

Re: Help w/ Rebuilding Plan (post-bk)


@capabk wrote:

Thank you SO much for the kind and thorough answers! Trust me, I'm taking notes :-) 

 

The Giant Eagle ("gine iggle") card is about the only Comenity card I would actually use, but you can't SCT it... so oh well. I've looked at Synchrony cards too but I burned Synchrony CareCredit in the bk. (Thinking of offering to pay back after bk is through, but it would take me some time. Maybe set up payment plan? Or would that be $ down the toilet?) I'll keep researching, and hope I have time for scores to rebound.

 

Thanks again,


You can totally live without Synchrony Smiley Wink

 

I personally don't think any bank is worth paying back after BK. Leave that mess behind you, rebuild, and do business with different banks.

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 - $130,400 total revolving
5% Conventional Mortgage @ 3.25% July 2020
May 2020 - EQ/EX/TU Fico8: 689/688/679 INQ: 4/2/2 Util: 13.7% total, 4 accts reporting $0, 5 accts each under 30%
Message 5 of 6
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Community Leader
Super Contributor

Re: Help w/ Rebuilding Plan (post-bk)


@capabk wrote:

Thank you SO much for the kind and thorough answers! Trust me, I'm taking notes :-) 

 

The Giant Eagle ("gine iggle") card is about the only Comenity card I would actually use, but you can't SCT it... so oh well. I've looked at Synchrony cards too but I burned Synchrony CareCredit in the bk. (Thinking of offering to pay back after bk is through, but it would take me some time. Maybe set up payment plan? Or would that be $ down the toilet?) I'll keep researching, and hope I have time for scores to rebound.

 

Thanks again,


Absolutely do not offer to pay back the debt. That was your whole purpose of filing BK was to rid yourself of the debt...any and all, not matter what it was. If thats the case, then you should have tried to work out a payment paln before thinking of filing, or filed a Ch13, which you pay back.  Leave it!

 

 I burned Chase, Citi, Synch, Comenity, USAA,  in my BK7 for the tune of around $50k total. I had back Synch and Comenity cards within 5 months again post discharge. I got back every single card that I had IIB, and my CL's are higher now than they ever were when I had pre-bk. 

 

Trust me....you'll have cards again, including Care Credit if you want them back.  Start first though with Cap1 unsecured once your reports reflect the BK as "Discharged", and then we will go from there. But dont pay back your debts that were IIB.  


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 6 of 6
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