My BK Journey - 1st post

[Anonymous]

I have enjoyed reading other people post similar journeys, so here's a stab at mine...

First post (Jan 2, 2019):

The dirty details aren't necessary, but the gist is: bad marriage, lots of debt in my name, most of it unbeknownst to me, and a consultation with a BK attorney in Spring of 2018. After a few meetings and some digging to find all creditors and make sense of my financial life, I filed Ch7 on June 22, 2018.

The creditors IIB were substantial - Chase, AMEX, Discover, Citi, Paypal, Amazon (Synchrony), Home Depot (Citi), Barclays, USAA, Bank of America, Lending Club, Avant, and Prosper... pretty much every major issuer except Capital One (ironically perhaps?). All told, over $100K of unsecured debt was named in the filing.

My 341 meeting went smoothly (I have no real assets to speak of) and my discharge date was October 23, 2018. I hadn't yet familiarized myself with the myFico community, so my gut reaction was to open a Secured Card - and I chose Capital One. I was instantly approved and I paid $849 to bump my starting CL to $1,000. 

Around that time I started reading the forums here, and now I'm planning my next steps. I tested the SCT (got a HP for DP!) and opened a Wayfair account in early December. So at this time I have 2 revolving lines reporting, plus a Student Loan that survived the BK. 

I am in NO rush at all for my rebuild - just focusing on being a good dad right now and living on cash... but I understand that it would make the FICO algorithms happier if I added a 3rd revolving line. Given the long list of issuers I burned, who should I be targeting for that card and when would be the best time to grab it? I would prefer to avoid the shady issuers like CreditOne and First Premier... as I said, I'm not in a rush.

For further reference, I have already checked the Discover prequal site and even apped for the Secured card. As I expected, it was an instant denial with no HP, citing the prior card relationship as the reason. I am a member of PenFed with only the initial $5 account, and I could potentially join NFCU if needed (I have family vets). 

Anyway... long post, I'll end it now. Just open to suggestions and advice, and I'll pop back on with updates when they seem appropriate.

Thanks - and Cheers!!

[Anonymous]

The SCT no longer works so expect a HP even if you get a pop up.  I guess I would have to suggest eventually getting into NFCU.  From the brief reading, I think some people are saying you must be 1 year post discharge to be approved for a card there(someone correct me if I am wrong).

Since you have a way into NFCU then you can also get into USAA.  Currently USAA is working on a secured card that is not yet available to apply for but I'm sure it will be soon.  You may want to ask one of your relatives for a copy of their DD214 just to have on hand.  

Wells Fargo offers a secured card and US Bank offers a secured card.  I really don't know about either of those company policies in relation to obtaining a secured card with a BK on file.  I didn't see them on your list so I mentioned them.  I do know that US Bank has a prequal so you could see if maybe you could prequalify for their secured card.  Hope this helps and GL to you!

[pizza1]

For the next several years (7-15+), forget....Chase, Citi, Amex, USAA. Amex will let you back in if you pay them back IN FULL, they don't settle either, its all or nothing.

Chase has BK policy now of not approving apps anywhere from 8yrs to until BK is off reports. Don't even waste a HP on Chase or Amex. It won't happen.

Citibank has two divisions...their retail side, and legacy side. Their retail side is like HD, BB, gas cards, and much easier to get. Legacy side is their website cards and forget the legacy cards for 5-10 years. Some folks who burned them didn't get back in for many years. To be considered for their secured card, you have to be 2 yrs post DC as well.

USAA is a different breed as well. They have policy of 7 yrs from DC date before they will approve for unsecured credit again, and you will actually have restrictions placed on your account, that will automatically be lifted 7 yrs from you DC date. Their current secured card doesn't graduate and has an AF, but supposedly they are revamping their secured card to make it more attractive, and have the potential to graduate with good history.

If I wasn't as far post BK as I am now, (5 1/2 yrs), I would probably apply for their secured card if revamped, but I only have a year and a half before I can apply for unsecured CC with them, so doesn't make sense for me to do that, but in your case it would.

Navy. I can't say enough GREAT things about them. Hands down they are the best. I was lucky enough to get an unsecured cc 3 months post BK a little over 5 yrs ago, and now I have 3 CC's with them...$25k, $20k, $9.9k. I also refinanced my car loan with them 6 months post BK (paid off now), and I have $15k CLOC. Ive been with them over 5 yrs though

Navy will be your ticket big time. Get it with them now, seriously...they are the best.

US Bank is 5 yrs and 1 mo post DC date before they will consider you for CC. If you burned them, it could be longer.

Synchrony is pretty forgiving as well... I was able to get back 6 months post DC with them.

Discover, wait a year, and then apply for unsecured, and you might get it, or they might counter you secured. I would take secured as it graduates.

Capital one...keep checking their pre-qual site and see if they offer you anything. I bet within a few month you get approved for unsecured.

You burned Barclays, so it'll be awhile a few years before they let you back.

You don't need an installment loan. You have your student loan and that counts. You only need one for credit mix, and so no need to go out and Get a credit builder loan.

Keep your membership up with PF. Make a few deposits here and there, and then in a year apply for Promise visa.

[Anonymous]

Thanks for both of your responses! It sounds like NFCU is going to be hearing a lot from me in the near future! I'll join now and start contributing to a savings account in preparation for a CC app down the road.

Does anyone know if Navy does a HP for membership? If so, what bureau?

[Anonymous]

---

@Anonymous wrote:

Thanks for both of your responses! It sounds like NFCU is going to be hearing a lot from me in the near future! I'll join now and start contributing to a savings account in preparation for a CC app down the road.

Does anyone know if Navy does a HP for membership? If so, what bureau?

---

At this time that is kind of a gray area.  They always did at one time but recent reports(including myself) have shown otherwise.  They may have stopped doing a HP for membership.  I only opened a savings account.  If you happen to open a checking account, I would be cautious about selecting the overdraft protection as it is much more likely to cost you a HP in my opinion.  YRMV of course.

[Fx6cowboy]

When I signed up for NFCU they pulled my credit. But it was very worth it for me as I know have their secured card, getting it 1 month out from discharge. I have other banks but I really like Navy Fed, hope this helps 

[Anonymous]

I joined nfcu last month, opened a checking and savings, no hp for me.

[Anonymous]

Wow... after reading your post, I thought I was looking at mine lol. Even my discharge date and new auto loan (interest and date) are the same as yours. I also have student loans as well. The only difference is that when I filed, I didn't have any credit cards.
Stick with NFCU... everything that I have read on here says that they are a fantastic company to work with! I don't have a way in with them or I would be signing up with them as well.
I now have a Wayfair ($500 cl), Overstock ($250 cl), Discover secured ($400 cl) and a Capital One ($300 in credit steps). I am just sitting back, paying everything on time, and letting stuff age. If you wanted another card, you could try for Overstock if you think you will use it. Just a thought.
Good luck in your journey... we are all in this together and there IS light at the end of the tunnel!