NFCU cloc... now what to do

[Anonymous]

Hey all, starting to feel some NFCU love. Filed BK7 in 2017, discharged in feb 08. My patience for the rebuilding process is falling quick. Since the BK i have worked hard , studied the boards, and hopefully made some good decissions. I started with a self lender account to get a loan on my reports, then shopping card trick to get 2 cards, that i just closed because they showed no love, and didnt really use them. At a combined $450 limits, it isnt much of a loss. Next came Ollo, bumped from a start of 800 to a whopping 900 after running everything through it. Also have Credit one, just got them to wave the AF for next year, but to also refund the previous AF. Cap 1 just allowed me back after a burn, for a 3000 plat. Then finally NFCU recon got me a 500 CLOC after initial 1000 request. So i sit as follows:

Self lender $500 $25/24 loan 1 yr old

Credit 1 $650 closing in on 1 yr

Ollo $900 about 9 m

Capital plat $3000 not reporting yet

NFCU cloc $500 just approved.

Just closed 2 store cards

AU on store card for $2400 survived BK is about 5 yrs old.

Debating on opening NFCU secure, too affraid to go unsecure, shy 1 yr bk, and with it being a recon to get cloc not sure it would fly.

Plan on using NFCU for FHA next spring after BK hits 2 yrs.

Open to thoughts?  want to hit those high NFCU limits someday and feel like i have come back from BK. Not sure how the closing of 2 accounts, and opening 2 accounts will help/hurt. Wanting to have only cards i use that have a purpose in my life, and not just a stack of plastic. Before BK i had over 100k in CC's and some got little to no use... want to do it right this time dont need 15-20 cards after buying a house, i will prob close ollo and credit one, hopeing to groom cap 1, and maybe navy. Would love discover back, but burned them too and know they are not so friendly. Thanks

[FireMedic1]

I would keep all cards open right now. Closing cards just because you have some reservations about the card is doing more harm than good. You want to build a profile and some history after BK. You could try Disco for their secured knowing they will graduate at some point. Once things get better then apply for better cards.

After 3 statements you can ask for a SP CLI with Cap1 and then the credit steps will kick in. Month 4 go for the upgrade to the QS, not QS1, for cash back. Lay low and let things age. No more card roulette. Slow and steady. Dont rush things and youll be fine. You were at the top for a while. But now its recuild time to get back to where you were before but it will take time. Good Luck!

[Anonymous]

A few other thoughts:

- Once you are past the 12-month post-discharge mark, you can try to apply for an unsecured card with NFCU. If this doesn't work, ask them to use the same inquiry for a secured card.

- I believe NFCU has internal bankruptcy seasoning of 4 years. In other words, although you may be eligible for an FHA loan at the 2-year mark, NFCU has a longer period of time. Before you submit an application, reach out to a mortgage loan officer and ask them to confirm for sure.

- I agree that closing cards is doing no good. Some card issuers will let you reopen if you close within 30 days. If you aren't getting charged fees, consider re-opening these cards (if there's no additional credit inquiry).

[Anonymous]

I know the closing of 2 cards will hurt some, but people on the boards often tell people to close credit one, for example. Eben in the "bk to 700" it says stuff about closing cards.  UTI wont be hurt, and the cards will report positively for 7 yrs. I have around 35 or so positive accounts from prior to BK so my file is not thin. I looked into the mortgage with NFCU back in the summer, they even ran my credit. The loan officer explained to me that 1. for FHA it is 2 yrs post discharge, standard is 4 yrs. She said aside from the BK not being old enough, she could easily get me approved. So i am sure i wont have trouble on that. I am trying to strenghthen my file with some decent accounts, build a relationship with them, and keep my DTI low when i apply. Those accounts would cost me DTI, as even accounts paid off carry a min $25/month payment. I have heard of it being even higher with some lenders. So replaceing them with 2 better cards, IE cap 1, and NFCU secure which will unsecure by the time i apply, and no doubt be higher then both closed cards. I will have no inq for 12-15 months,  and only the 2 NFCU and cap 1 will be under 2 yrs old. My AU account will be 6+ so that will bring my AOa to 26 months when i plan to apply. Currently my AOA would be  only 4 months older at the same time. This is factoring off a quick look and including new accounts and cc from navy. So i "think" i would balance it out just fine and hopefully build a relationship with NFCU, and boost my internal score i keep hearing about. I know everyones credit situation is unique, and no one has the "key" to the correct way to manage credit. If so they would have an 850 score and have no need to be on the boards. I am just trying to rebuild my file, build a relationship with NFCU, and buy a house so i can move on with my life and feel like i acomplished my goals. I already closed the accounts, so we will see how that hurts me short and long term, just on the fence about the secure card. It would start my goal, and get me some history with NFCU, and set me up to be where i want. Maybe my thinking is wrong, maybe i will get lucky and be right, just wish i could predict the future.

[Anonymous]

The reason I suggested reopening is because a bankruptcy will often flag your application for manual review. Loan officers like seeing 6-12 months of post-discharge credit. If you don't have 3+ active tradelines post-discharge, you have insufficient post-discharge history. Your pre-discharge history is less relevant. With that in mind, I don't know what your post-discharge history looks like. Perhaps closing the cards makes no difference to your credit.