My Journey- almost 1 year post Chapter 7 discharge

[Anonymous]

Hi everyone. I am so grateful to everyone who has taken the time to start a thread or post an experience. This will be a longggggg post but I want to pay it forward and share some info on my journey from the dark days of Chapter 7 (discharged November 2015) to today. I’m not advocating that anyone do ANYTHING I did to start my rebuilding, just sharing the details.  

My 341 meeting was on September 15, 2015 and I was pretty sure that my future credit was going to look like a $200 secured card with a $79 AF for the next 10 years. It was a pretty tough place to be, as many of you have experienced. I had always lived within my means, paid bills on time and was secure with my retirement. My 20 year marriage ended and suddenly my retirement was cut in half and everything started to nose-dive. With no where to turn and a house in foreclosure, I had to file a Chapter 7 BK and was pretty humbled by the situation I found myself living in daily. My Chapter 7 was discharged on Novemebr 15, 2015 and I took the first deep breathe I'd had for a long time.

While awaiting my discharge, I lurked on this forum almost daily. I read, reread and learned. I have never seen such a collection of valueable information, which was not only readily shared by members of the community but it was accurate! I started to get my second wind and thought that if it worked for others, why not me? One of the first things I decided to do was to come out of retirement and look for a new career. I knew that 'dti' was going to be a critical part of my bebuild and I needed more income.  I was relentless in my job search (not so easy when your old lol) and after a zillion resumes and several interviews, I was offered what has now become a great position.

When my Chapter 7 was discharged my FICO 8's were EQ: 585, TU: 550 and EX: 551. I accepted a pre-approved offer from Capital One for a Platinum card. Within a couple of weeks I received my card with a $2K starting limit. I was amazed. I also accepted an offer for a card from Credit One with a $600. SL and a steep AF. I realize Credit One is a predatory lender but I personally looked at it as the cost to rebuild and I was okay with it. I used both cards for everything I bought and paid them to within $10 when the statements cut.  I ran about $3K a month through Cap One and paid them multiple times during the month, as to not go over 20% utilization at any time. I used Credit One for gas only.  I also have a student loan. I didn’t pay any attention to where my scores were at this point, I just kept reading the MyFico forums and planning my next move for after my first auto increase at Cap One.

When my 7th statement cut, in July 2016, Cap One did an auto increase to $4K.  My FICO 8's were now EQ: 703, TU: 695 and EX: 660. I was stunned that the scores had moved that much in just over 7 months. While the scores were better than I hoped, I know the BK was fresh.  I planned a 'spree' for August with a commitment to myself, that when it was over, I would run to the garden. I added new accounts but only for cards that would help me grow and only for stores I would actually use. I knew Comenity was volatile, but I decided to chance it and opened 4 accounts with them and all through the SCT, three were SP (Sportsman's Guide Visa, Overstock, Good Sam/Camping World Visa) and one was a HP (Red Roof Inn Siggy Visa). I also applied for Discover it (offer in the mail with a 3% spread on the rate and BT options), they countered with a different offer but I gladly took it to get in the door. I added another Cap One card, Quicksilver this time, as well as Evine.

With my new job came a 3-4 hour daily commute and I was starting to feel the exhaustion. I entertained renting an apartment close to work to use during the week and then drive home for my weekends (I work four 10’s). My DGF who has been a mortgage underwriter for 20 plus years, suggested that I research local credit unions in our area who are BK friendly and consider an RV loan as a 'work condo' alternative. She made the case that I could use it during the week and I would have a great option for road trips as well.  I really thought she was nuts as there really isn’t any data posted about this and I couldn’t imagine getting a loan of that size at this point in the game. I was intrigued at the thought of actually paying for something I would own instead of throwing money away on an apartment, so I researched ALL of my local credit unions and created a short list of which were the most BK friendly (I was only 8 months post-discharge and big institutions like Merrick were saying at least a year to apply and 10-20% down). I also needed a CU that loaned on the full MSRP so there was a chance that I could get in with zero down. I located the RV I wanted, a new model year 5th wheel and I found a dealer who sold at 20-30% below MSRP. This was important as I didn't want to hit the savings that I was starting to build. I didn't have a relationship with the CU but I walked in and explained that I wanted to apply for an RV loan.  With my application, I submitted a letter to the committee, explaining my past, the BK, my current situation and my plan for the RV and my future. My DGF said that it's best to have an explanation to go with the scenario when there is something as big as a BK in your recent past. Four hours later I got a call, loan approved, 100% financed at 4.99%. Just had to bring POI to sign. I ended up getting a used car loan with them also at 5.25%. I am very happy with this situation as the two loans together are far less than the apartment I was considering. Even with a space in a beautiful RV community, I’m $200 to the good monthly and no longer road weary. Not a choice for everyone but it works great for me.

As I was packing quickly to leave for the garden, it was still nagging me about getting my foot in the door at NFCU, as I had joined Navy League San Diego but hadn't opened a savings at NFCU yet. I wanted PenFed as well but I also was thrilled with all the positive movement I had made in a month. I decided that I would open checking and savings accounts at both Navy and PenFed, set up direct deposit for each and then app them for cards next year. I sent in my paperwork to Navy and waited about 7 working days. Then I called and the rep said they were swamped but I should have an email in the next few days. Three days later, I got the welcome email. I knew I was at the end of my app spree but decided to app for the Go Rewards card and CLOC. Go Rewards, instant approval $4500., CLOC referred. Checked the status an hour later, CLOC approved $15K. I was stunned. Totally pushing my luck and being ready to be labeled an Egyptian, I called PenFed the next day. Opened my savings and checking w/$500 Thrifty, rep was awesome. I knew from the forum that my credit pull was good for 90 days, so I briefly considered setting a reminder on day 85 and then applying for the Promise Visa after the recent dust settled. Of course I didn't wait, instant approval $3K. Received the survey and gave them 10's accross the board...amazing CU to work with so far. I also included in the comments at the end that I was beyond happy to be with PenFed and hoped that someday soon I would earn a CLI so I could actually use the card to take advantage of their great BT offer. A rep called me the next day, we chatted about my goal and preference to make PenFed my number one and he asked me what type of starting limit I was looking for. I explained that I like to keep my utilization below 6-9% and $15K would be great. He countered with $10,500...my biggest SL yet! Thanks a ton to Baller and Credit Addict who tirelessly have posted about these two CU's.

So YES, I am now in the garden, for real. I have established some core cards I can grow and slowly I will eliminate the Comenity cards as my other cards receive cli's. I went from total credit of $4600 to $154,600 from August 1st to September 26th. My scores took a hit of course, but I knew it going in and scores aren't that important to me while I'm gardening and not applying for anything new. As of this morning my FICO 8's were EQ: 675, TU 686 and EX: 665. I’m sure there is more downward movement with the FICO’s, as none of the new CU accounts are reporting yet. I plan to garden for the next 18 months.  I am not suggesting that anyone app to the extent that I did but I am offering this snapshot to those who may feel like it will never improve after their BK. It will and it does. I can't stress enough how important it was for me to research, research, research and then to make a plan. I would suggest drafting a plan in writing and then reworking it (I did so every week). Knowledge is power and without this community I would be lost. Thank you to everyone who has taken the time to post when they had other things they could be doing. I hope that I can help someone like you all have helped me.

So in conclusion, I have listed my data points below. See you in the garden!!

FICO 8's: Nov. 2015 Chapter 7 discharge: EQ: 585 TU: 550 EX: 551

Dec. 2015 : Cap One Platinum $2000>July 2016 $4000

Jan. 2016: Credit One Platinum $600

FICO 8’s: July. 2016 EQ: 703 TU: 695 EX:660

Aug. 2016 apps:

Sportsman’s Guide Visa SCT SP SL $4500

Overstock SCT SP SL $7K

Discover SL $1600

Red Roof Inn Visa Siggy SCT HP SL $5K

Capital One Quicksilver SL $3K

Good Sam Camping World Visa SCT SP SL $1800

Evine SL $1K

Lowe’s app in store SL $2400. Recon immediately from parking lot, SL $6K

NFCU Cash Rewards SL $4600

NFCU CLOC $15K

PenFed Promise Visa SL $3300 Recon through survey SL $10,500

PenFed Thrifty $500

Credit Union 5th wheel loan $62K

Credit Union used auto loan $29K

Personal Income: $97K job plus retirement $39K

Utilization 8-20% throughout 2016

DTI <22%

FICO 8’s October 2016 EQ: 675 TU: 675 EX:663

UPDATE January 2017

Happy New Year to all! I know I'd have to jump out of the garden to try for the CLI on my Navy Cash Rewards Visa due to the inevitable HP, so I did on the 1st of January. I received the CLI and immediately app'd for the Cash Rewards Visa. While I was apping, I tried for my second PenFed card and got an instant approval for the Platinum Rewards. I am going to contact PenFed to see if I can swap the limits from the Promise to the Platinum as I know I'll use it more with the higher limit. Since I was already solidly out of the garden, I talked to a local CU about the rates they offered on their Platinum Rewards Visa. I decided to go for the card and got it with a $25K SL with POI. Added Comenity's HSN card as well on a SP pop-up, as I buy my vitamins there.

Had a couple bumps from Lowe's, Evine, Overstock, Sportsman's Guide and Discover since gardening and my scores have moved up a bit. I noticed on MyFico, that my Equifax hadn't moved up or down in weeks, so I contacted customer support. They gave me a code for a one-time EQ pull (I guess to shake things up and make sure the changes were coming through MyFico) and my score changed immediately. 

So, here are the changes in the last Quarter since I started this post:

01/17 Fico 8: EQ-695, TU-703, EX-678

Utilization <5%

Advantis Credit Union Visa $25K

NFCU Cash Rewards CLI $4600>$22K

NFCU Go Rewards $5,500

PenFed Platinum Siggy Visa $5,500

HSN $3750

Discover It CLI $1800>$2K>$2300

Lowe's $6K>$17K

Evine $1K>$5K (Got what I asked for...I know...should have asked for max)

Sportsman's Guide Visa $4500>$5250

Overstock $7K>$7300>$7700

AND...the thing I am very excited to report, is that I closed my Credit One Platinum Visa at the end of it's first year.

I'll check in next quarter and all the best to all the MyFico family!

[tussking]

WadeDalton

You're a true inspiration to everyone who has filed BK7. Reading your story was - well simply put "AMAZING" !

Congrats to you. Your life in every aspect has blossomed in less than 12 months ! Good for you ! Keep up the hard work !

[Anonymous]

Hey tussking, thanks for the kind words!

I'd sure like to hear your story  and any tips you can share as you are approaching your 1 year discharge anniversary next week, congrats by the way! Looks like you have done a ton of work for that impressive CL total and great scores, really nice work!! This community is full of inspiration and it's a true honor to be apart of it. We're all learning everyday! 

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!

[Scupra]

Wow, you have done an amazing job rebuilding. Thank you for sharing your story with us. I wish you the best of luck and continued success

[Anonymous]

@ Scupra, you are one of my forum heros for sure! I have learned so much from you and enjoy reading your posts immensely!!

Like I've said to you before, when I grow up (again) I want to have an impressive siggy like yours...hopefully in a few years.

All the best my friend!

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!

[Anonymous]

What CU did you use for your RV/Car loan?

[Anonymous]

My 341 and discharge are on the 13th Sept / Nov...so this gives me hope and a better outlook. Great post - thank you for taking the time to share your story with the many of us that are browsing these forums day-after-day watiing for discharge. I, too, have been planning my post-discharge life out with a notebook and writing down dates to apply, etc in hopes that it will give me a more focused path. Glad to hear it worked for you!

Congrats on all the progress and quick rebuild! 

[LShan82]

Great story! Congratulations! 

[Scupra]

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@Anonymous wrote:

@ Scupra, you are one of my forum heros for sure! I have learned so much from you and enjoy reading your posts immensely!!

Like I've said to you before, when I grow up (again) I want to have an impressive siggy like yours...hopefully in a few years.

All the best my friend!

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!

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You are too nice, thank you. You already have quite the siggy

[Anonymous]

Sorry for the late response!

@ SacTownGuy, I went through Northwest Community CU here in Portland, OR. If you're looking for a local CU in your area, I can tell you what I did to narrow the possibilities.

First, I made the list  of CU's that I wanted to check with and sent the same email to customer service at all the CU's. I explained that I was looking for an RV loan and gave them a quick snapshot of my situation. I mentioned that I wasn't expecting a definate, but if they weren't able to work with a fresh BK discharge, then I didn't want to waste their underwriter's time. It took about 24 hours to get the first responses. Two said they would welcome the application but cautioned me that beyond the BK, they would look at all aspects, including dti, income and what type of rebuilding I had done since November.  One said they didn't have any anti-recent BK policy but their RV cap was $35K which wasn't high enough. Seven had a co-signer and/or one year  discharge policy with a BK and the other seven didn't respond. Of those who didn't respond, I sent them a 'second request' for information and still received no response. I took that as a 'NO' lol

While I was waiting for this information to come in, I also contaced Merrick and SE Financial. The later was way too rigid and while they catered to the sub-prime market (score minimum 550), even if approved, the rates would be steep. Merrick was interesting and I was referred to the 'Director of National Accounts' to answer my questions. As they aren't a 'direct' lender I just wanted to hear the criteria from them before applying through a dealer and perhaps getting a fast no. I sent the Director an email but got an out of office reply. I then called in and explained that I was a consumer but needed to ask a couple quick questions and realized their Director was away. I was transferred to a gentleman who was extremely helpful and he even checked with the credit manager to see what, if any, work-around there was regarding the seasoning of the discharge for 12 months. He called me back the same afternoon and said that they no longer had a one year requirement, encouraged me to apply and said that he had given the credit manager my name, so he would look for my app when it came in from the dealer.

Ultimately I decided to go local but about 10 days later after my loan was done, the original Director from Merrick returned from vacation, called me back and left voice mail. She was extremely discouraging and almost sounded offended that I would try for this type of financing at this point in my rebuild. She was actually very unfriendly, so much so, that I called her back to say thanks but no thanks since I had already taken delivery on my 5th wheel from my local CU. She answered live and we chatted for a minute and she told me that they wouldn't even consider an application without at least a year from discharge. I explained that I had actually spoken to the gentleman in her absence who was very helpful and I had received different information after he verified it. She was quiet for a couple of seconds and then said 'you didn't tell me you had spoken to my boss' LOL! Proving once again, sometimes it really depends who you get on the phone. Merrick would have probably been okay but they didn't offer the same low rate or the 100% financing that I got locally.

Sorry for any typos...using my phone and it's not cooperating!

Chapter 7: Discharged November 2015
11/15 Fico 8: EQ-585, TU-550, EX- 551
07/16 Fico 8: EQ-703, TU-695, EX- 660
09/16 Post App Spree Fico 8: EQ-675, TU-675, EX-663
Cap One Platinum $2K>$4K, Cap One Quicksilver $3K, Discover $1,600, SPGVisa $4500, Red Roof Inn Siggy Visa $5K, Good Sam/Camping World Visa $1800, Overstock $7K, Lowe's $6K, NFCU Cash Rewards Visa $4600, NFCU CLOC $15K, PenFed Promise Visa $10,500, Evine $1K, CreditOne Visa $600|Total CL: $153K
Garden until September 2018 (I'll be in the pumpkin patch)!