My progress so far, one year past discharge date

[Divaofsongs]

Time has really gone by so fast, it seems like just yesterday I was sitting in the atty's office starting the bk process, now here I am, 1 year past the discharge date of my chapter 7. I wanted to just give a little testimony about my progress in rebuilding my credit so far. I am really on my way to good credit again, the road has been slow, but to be honest, I am really surprised at just how much credit I have acquired since my bk. I thought I would be nowhere near where I am now. In my estimations, I thought it would take 3-5 years to get where I am right now, just one year later. I will list my progress in a timeline:

3 FICO scores day of discharge: Very Low to Mid 500’s
3 FICO scores today: 650 - 675

May 2013 - Filed chapter 7

Aug 26, 2013 - BK Discharged

Sept 03, 2013 – Rcvd pre-approved notice in mail for Cap One Unsecured Platinum MC – Applied online and approved for $300 instantly. (BTW, Cap One was IIB)

Sept. 17, 2013 – Went to dealership, rcvd Cap One Auto Loan for $25K with zero down and 15.69% APR

Sept 22 2103 – Spoke with Cap One online chat rep and asked about 2nd Platinum MC, she said I could have more than one card so I applied online and got instant approval for $2000.

Oct 05, 2013 – Was shopping online at Walmart, decided to apply for a card and was approved instantly for $500. (BTW, Walmart was IIB)

Oct 07, 2013 – Woman Within (Commenity Bank Card, I shop there sometimes) sent me a preapproval through my email for $250. I accepted.

Oct. 08, 2013 – Applied for Barclay’s Bank Average Credit Reward’s Master Card and was denied!  (Too confident and had not waited long enough)

Nov 03, 2013 – While checking out at Amazon.com, I decided to apply for their store card and was approved instantly for $700.

Jan 17, 2014 – Applied online for HSN card and was approved for $750 instantly.

Feb 05, 2014 – Tried again for Barclay’s Bank Average Credit Reward’s Master Card and was approved for $1500 instantly.

Feb 19, 2014 – Auto CLI on 1st Cap One MC to $1600, Auto CLI on Walmart to $1100

Mar 08, 2014 – Applied online for Lowe’s card and instantly approved for $900

Mar 19, 2014 – Auto CLI on 2nd Cap One MC to $2500

Mar 22, 2014 – Auto CLI on Amazon to $1400, decided to hit luv button and instantly approved for $1900

Apr 4, 2014 – Did PC on both Cap One MC’s to Quick Silver MC’s

June 8, 2014 - Applied for Discover IT and was denied! (I will try again in a year.)

July 14, 2014 – Hit luv button on HSN card and increased credit line to $1150

Aug 11, 2014 – Auto CLI on Walmart to $1800

Aug 13, 2014 – Refinanced auto loan with local CU for 5.89% APR

Aug 20, 2014 – Hit luv button on 1st Cap One MC and rcvd $3000 CLI online instantly to $4600 total CL.

Sept 2, 2014 – Auto CLI on Lowe’s to $1900

That is my journey so far! Every time I log in and see an auto CLI, it is like Christmas for me! I get so excited, there is hardly any feeling like it. I have hit the luv button on my cards that use a SP at least once a month and usually get a decline but when I least expect it..............WHAM! CLI!

All of my hard work is paying off and I cannot wait to have scores in the high 700’s and credit limits over $50K on my major CC’s. I know it is a long way off, but I am getting closer every day.

Now for my Barclay’s auto CLI. I am still waiting on that, and I should get another increase on my 2nd Cap One card next month.

Happy Camper! 

[zan987]

Keep up the good work!

[Scupra]

Great job at rebuilding! Keep up the good work

[approvedbyme]

Very well managed!

[0REDSOX7]

Awesome job! Good work.

[StartinOver]

Divasongs, are you able to share income and how long on the job? 

[Divaofsongs]

Our combined household income is about $65K. I am on SSDI, my hubby has been at his new company for about 2 years, past employment was 8 years. Hope this helps.

[StartinOver]

Congratulations, you've done well. 

[Anonymous]

Hi - I'm new to these forums.  Your progress is impressive and I'd like to see myself have that kind of success in rebuilding my credit score.    Long story short - foreclosure in Oct 2011, chapter 7 bankruptcy in May 2012.   After reading the steps you've taken over the past year, I have a question.   I only have one credit card, a car loan and 4 student loans.  I would like to purchase a home next spring and am anxiously hoping/trying  to get my credit score boosted by then.  My most recent Equifax score is from a month ago and is at 641.    I met with a housing authority representative  to ask about my chances of getting a mortgage.  She told me to NOT open anymore credit cards because of the "good" current mix of accounts that I have.   From what I read too, I thought having a bunch of new credit cards would be harmful to a credit score.   Could you please share how this works?    I am doing EVERYTHING (keep balance low, pay on time, no inquiries)  that I am told to do to increase my score, but wonder if there is more that I could be doing.    When I use the score simulator on Credit Karma, it looks like there is nothing I can do to improve my current score.  Thanks much - and congrats to you too!

[Divaofsongs]

Hey Kriser_99, welcome to the forums. I am probably not the best person to ask and I am hoping someone with more knowledge will chime in soon.........however.......I can comment on a few things. First of all, if the prospective lender told you that you have a good mix and enough tradelines reporting, then I would venture to say they know best.

As far as the credit score simulator on Credit Karma, it really does not work and is pretty much a waste of time. I have tried almost every scenario it offers and it shows little to no change at all in my scores. I would recommend the credit score simulator here on myFICO, I have found it to be pretty accurate. I am not sure which products it comes with, but I know it comes with Score Watch, and the new 3-bureau monitoring service....hold on, let me check. LOL

Ok, I checked! You get the score simulator with all their products. You can run each report for $19.95 (look on Google for a coupon code for 25-30% off to get it cheaper) or you can sign up for one of the services that offers daily score monitoring for either just Equifax or all 3. If you decide to use one of these services/products, you will find the score simulator a lot more effective than the one on CK.

Do you know what CRA's your lender pulls for the loan? I would assume all 3.

You said, "I met with a housing authority representative  to ask about my chances of getting a mortgage." Is she an actual lender? The reason I ask is because from my past experience with mortgage loans, most lenders require a certain mix and amount of tradelines for a minimum timeframe to approve your loan. If she is not an actual lender or speaking for the lender, she may be giving you the wrong advice, It is better to find out now, versus later on when you are ready to apply for a mortgage and find out you have to open other tradelines and wait until they age. However, opening a new credit card would definetely hurt your score in the beginning, until the tradeline ages, then it might actually help it....but if you are trying to buy a house in the Spring, I would definetely not open any new cc's right now. With a 641 score, you should be able to get financed. Maybe not at the best rates, but not the worst either.

Who gave you that 641 score? Have you checked your FICO scores here on myFICO? It might be a good idea to do that, just to see where you are on your other 2 scores, because most of the time for mortgages, they pull all 3 scores and go by your middle score for rate and term purposes. For example....if your scores for TU, EX, and EQ are 625, 705. and 660, your middle score would be 660 and that is the score they would base your approval, rate and term on. (I used to be a mortgage loan broker, so I understand that part.)

As far as having a lot of credit cards, you are right, too many is bad, and I really went overboard for sure, however, from what I have read, it is best to have a couple of major credit cards, a store card or two, installment loans (auto and student loan are installment loans) and you average age of accounts, utilization, etc., matters as well. I think the amount of your credit limit matters too, because one of the reports I read with Experian said that my score was being affected by the fact that most of my cc limits were under $2000. Apparently lenders like to see that you can handle larger credit limits. Most of mine were under $1000 at the time. There are just so many variables and I dont know what creates the optimum score.

As far as the one cc you have, is it a major cc? Secured or unsecured? What is your credit limit? How long have you had it? etc.

I would say to post a question in a new thread to get people with a lot of knowledge to help you out. I would make the title something like: What is the best mix and number of tradelines for optimum FICO score. You can explain your situation and you will probably get some great responses.

Unfortunately, I am credit crazy, and if you listen to me, you could get yourself into a big old cauldron of hot water, LOL. You may not get your house approved, but you can sure go on a good shopping spree with all the new credit cards! LOLOLOLOL Just kidding.

I really wish you the best, sounds like you are on the right track.