How long after Chapter 7 Discharge to apply for Secured Credit?

[Anonymous]

Hello all, I'd appreciate any assistance you might be able to provide.

My wife and I filed for Chapter 7 on Nov 19, 2018. It should discharge within 16 days. *Fingers crossed*

My quest was, how long post discharge, should we wait before applying and getting secured credit.

We are looking at NFCU, Citi Secured, and Unify for me - and Capital One, Discover and US bank/BofA/Wells Fargo for my wife.

(She burned NFCU, and Citi, and I burned Discover.)

Assuming our credit reports are reflecting everything IIB and 0 balance (correctly).

I was also looking at getting an NFCU Share Secured loan, and getting my wife a Penfed Share Secured Loan.

Our goal is to be able to transfer an auto loan from my brother's name at Carmax, to my wife's name, but with a much better APR and terms.

And to eventually get me to qualify for an Auto Loan for about 25K.

We're still deciding on the best places to get the loans, but we want to build up our credit ASAP in order to do it sooner rather than later.

Any help is appreciated!

Thank you!

[Anonymous]

Hiya,

Welcome here.  Citi says right on their application page "no bankruptcy history for 2 years." I applied for NFCU and the rep told me I'd "NEVER" qualify for any credit including the secured nRewards while the bankruptcy shows on my report.  YMMV.

[Anonymous]

So we're basically SOL on getting secured credit from Citi and NFCU? Ouch, I was hoping for better news.
Thank you for your info.

[JTC-137]

I was approved for NFCU secured nRewards 7 months post bk7 11/2018. That rep might’ve been misinformed

[Anonymous]

---

@Anonymous wrote:

I applied for NFCU and the rep told me I'd "NEVER" qualify for any credit including the secured nRewards while the bankruptcy shows on my report.  YMMV.

---

This is very much incorrect. You're eligible for a Navy Federal Credit Union secured card as soon as: 1) the discharge is relfected on your credit report, 2) you have an ability to repay the card (e.g. if you have no income, you will not be approved for a secured card because you won't be able to pay it back) and 3) NFCU has no unpaid losses. For example, if you included NFCU in bankrutpcy and they took a loss, you would never be eligible for any credit with them. 

You're eligible for an UNsecured card 1 year post-discharge (assuming you otherwise qualify based on credit, income, etc.). At that time the max. credit limit is $1,000. At 2-years post-discharged, the cap on credit limits is removed.

[FireMedic1]

---

@Anonymous wrote:

Hello all, I'd appreciate any assistance you might be able to provide.

My wife and I filed for Chapter 7 on Nov 19, 2018. It should discharge within 16 days. *Fingers crossed*

My quest was, how long post discharge, should we wait before applying and getting secured credit.(Up to 60 days for both of your reports to update. Then pull your CR's and make sure evrything is correct in saying 0 balance and IIB)

We are looking at NFCU, Citi Secured, and Unify for me - and Capital One, (For DW, try Cap1 pre-qual) Discover and US bank/BofA/Wells Fargo for my wife. (USB, BoA, and WF is out of the mix with the BK. )

She burned NFCU, and Citi, and I burned Discover.(Disco is usualy a yr +/- you can check the prequal or both of you)

Assuming our credit reports are reflecting everything IIB and 0 balance (correctly).

I was also looking at getting an NFCU Share Secured loan, and getting my wife a Penfed Share Secured Loan.

Our goal is to be able to transfer an auto loan from my brother's name at Carmax, to my wife's name, but with a much better APR and terms.

And to eventually get me to qualify for an Auto Loan for about 25K. (Self Lender)

We're still deciding on the best places to get the loans, but we want to build up our credit ASAP in order to do it sooner rather than later.

Any help is appreciated!

Thank you!

---

I tried to figure out who burned who and who can app for what. There wont be any ASAP credit repair unfortunately. It will take time. As we say here it not a race. Its a marathon. Try the pre-qual on whoever didnt burn who. There always OpenSky, No HP and reports as unsecured, everyone is approved. Gonna have to start at the bottom and move your way up. Its going to take a couple years. You could follow the BK to 700 thread. It can be done but it took me 3.6 yrs to get where I'm at. Slow and spread out apps. No SCT's they are all HP's. Wish you guys the best, In time you'll get it all back. But it will take time. But it flies by fast.

[Anonymous]

Thank you for the clarity. That helps a lot.

I called NFCU and they said that depending on the credit profile, it can take up to 1 year to be approved, though it can be as soon as immediately after the BK is discharged.

And thank you for the rest of the data, that helps.

[Anonymous]

they also have a secured loan so money not as locked up but wont convert but does not put a pull either

very good credit score booster

[Anonymous]

I applied 7 months after bk filing 4 months post discharge and other threads lead me to believe I won't be aproved for many more months but this thread is giving me hope. Husband burned PenFed with they ever if IIB and he isn't able to repay? Maybe I can reaply in 3 more months. Recon told me they 1 year discharge but I have not see that much of a wait in any thread. I did not IIB Navy Federal Credit Union. I also have a credit builder loan with Navy Federal and had no pull only took $250 they gave it back and I leave the revolving $40ish in the account to process the monthly payment as they give immediate credit when payments are processed. Not at all like regions hard pull all buraus and keep all for 6 months I did previously.