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New To The Community, I HAVE QUESTIONS !!

brokeandwoke
Established Member

New To The Community, I HAVE QUESTIONS !!

hey yall

 

I have been following this forum for a few months now pulling information and tips as I go. There are some really helpful tips too but I just have a few questions for yall or whoever cares to answer. So Ive been seeing the "6 months post bankruptcy" posts about people applying for credit cards and things getting approved for 4500-5000 credit cards right off the back. How are yall getting approved for these massvie amounts of credit ? Because really, ill be good with a small lil 1000 card or even a 500 but then what really confuses me is how in the fudge yall got 20k in available credit 1-2 years post bankruptcy ? I see that on alot of peoples signatures.

 

I did read about the "road 700 credit score" forum and it did not make sense to me how you can start applying for these cards ? and then using them im just confused.

 

 

 

 

ill make some new friends hopefully ... a little about me ..

 

im divorcing due to domestic violence (really big case in GA).. i have no house debt other than rental debt but i never had a mortgage, but two repos (one mine and one joint with his car) and some debt from credit cards, loans, and a furniture company. all will be included in my ch.7 filing. i am young still in my 20s .. some say too young to file but hey this is life and my best option. i will say im like less than 85k in debt but im not managing it so thats why i need to file. im managing my student loans but my credit is so shot i can barely get stuff. i cant even get a payday loan but i make like 45 a year. its sad really.

 

is there anybody else that filed young ? I want to buy a house after my 2 year waiting period after i file. I also want to get another car but i font want a high interest rate. i will be filing in two weeks. im happy but also nervous because people were all like its public, everyone will know my business, i wont be able to rent an apartment .. im just trying to do better for me and my boys.

Filed Pro Se: 3/2018 -- Discharge: 6/2018

Discharge Scores: All -450

Short Term Goal: 620 (645, 625, 636 01/2019)

Long Term Goal: 700+
Message 1 of 8
7 REPLIES 7
Scupra
Super Contributor

Re: New To The Community, I HAVE QUESTIONS !!

Hello and welcome to myFICO! I actually think it’s a great thing to file early and get your financials back in order. I would also work on budgeting and developing an emergency savings too, develop some good processes now early on Smiley Happy It is public but I’ve never had anyone know about my BK unless I’ve told them haha. Nobody goes searching these things usually. I wish I would have filed sooner, I waited due to embarrassment.

There is a million different ways to build credit, you have to choose which way you will take. Some people follow the Bk to 700 plan strictly, others just apply willy nilly and go day by day.. no way is wrong...well you know what I mean haha! With the goal to purchase a home, I would take a steadier more directed rebuild approach. Obtaining credit is pretty easy once you have a good foundation built. Don’t go obtaining limits you can’t personally handle though, it doesn’t impress us here Smiley Wink You’re in the right place and already ahead by researching so keep on trucking!
Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
759 EQ FICO 03/2021
754 TU FICO 03/2021
743 EX FICO 03/2021
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Message 2 of 8
brokeandwoke
Established Member

Re: New To The Community, I HAVE QUESTIONS !!

Thank you ! I am so glad someone replied. I was a bit nervous about posting because I didnt think anyone would read it. Thank you.

 

I have learned from my mistakes and have even started to implement new spending habits. I think I got caught up in that young and fast life wihtout really having a plan. I didnt learn about saving and credit until recently. I just want to be able to get a car and a place to stay (renting until my waiting period for a mortage is up), i can manage all of it, its just that being so far in debt and creditors taking me to court, garnishments, and credit reporting really messed me up.. im looking forward to this

Filed Pro Se: 3/2018 -- Discharge: 6/2018

Discharge Scores: All -450

Short Term Goal: 620 (645, 625, 636 01/2019)

Long Term Goal: 700+
Message 3 of 8
JoeFriday
Regular Contributor

Re: New To The Community, I HAVE QUESTIONS !!

Welcome to the forum! Your story isn't all that unique, unfortunately. I've read posts by several people in their 20s going through something similar. And I agree that it's best to cut your losses as soon as possible if that's where it's going to end up eventually.

 

I can't tell  you how people get high CLs shortly after filing. I assume it's due to high income and possibly excluding some cc's from the bankruptcy or possibly being added as AU on a well-established card. None of those things applied to me, so I had a long period of little to no credit building. But by maintaining a sensible financial lifestyle post-BK, I'm finally hitting the 700s, and should be around 800 as soon as my BK drops off all my reports. It takes time and persistence, but you can do it!

 

As for having people know about your BK... it's not really likely unless you live in a small town where BKs are reported in the newspaper and people read them for entertainment. I live in a large city so it's not publicly posted at all. Sure, it's easy for someone to find if they knew where to look for it, but the only people who would know are people who also went through BK. I'm 6.5 years post-filing, and not one person has ever asked me about it, meaning they simply don't know or don't care. About 10% of adults in our country have filed BK at some time. Quite a few during the 2008 real estate crash. So it's much more common than you think. People are more sympathetic than you might imagine. And with your divorce, most people would simply say it makes sense.

 

Having a BK on your record might make renting a bit of a challenge. I've rented from three different landlords during my post-filing period. Two landlords mentioned it but didn't seem to care. But then, I had a stellar rental history, which was all they cared about. One never asked about my credit history at all. Being honest will help you a lot if they inquire. A landlord wants to know they will get paid every month, but also wants to know you can be trusted in general. A lot of that is based on how you present yourself in person. Unfortunately, that doesn't really work with banks and car dealerships, as well!

 

Began 5/17/17
EQ 621
TU 577
EX 608

Current FICO 8
EQ 767
TU 775
EX 728 - FINALLY ALL ABOVE 700!
Message 4 of 8
capabk
Frequent Contributor

Re: New To The Community, I HAVE QUESTIONS !!

br/woke, (I like it :-))

 

welcome and it sounds like you are getting there and asking the right questions. It takes a while to really wrap your head around all of this, so keep reading and asking yourself questions. And we'll be here if you get stuck.

 

Divorce is tough and I'm sorry about the reason you are having to. And being mired in debt in the middle of all of it. But you are going to get a fresh start and I can't wait to tell you congrats when you do. 

 

The only people in my life who know about my BK are... well, my direct supervisor at work, and that's it. One person. I had to tell her because there is one job duty that directly pertains to my BK, but they were super supportive and everything worked out! I'm gonna tell you right now, people in your life are NOT casually looking up everyone they know on PACER. lol. No one has time for that!!

 

I filed in my early 30s, I consider that young but not as young as you. Know that you have a long future ahead of you and  you want to research and be patient and cautious as you build yourself up during and after this BK process.

 

I would say don't worry about people who get high CLs. I don't know what your income is, but mine is around my age, and my aggregate credit limit (across all CC's) already surpasses what I could reasonably pay back in a year's time. Don't chase that "high." Right now what you need to worry about is establishing good money management skills. I suggest, to start,

 

1. Cash diet. Start it now, keep it forever.

2. If you work, split your pay check. Determine how much you reasonably need in expenses and send the rest to savings automatically (let's pretend your paycheck is net $1,000, and you need $800 set expenses every two weeks, send $800 to checking and $200 to savings) - and never touch that savings. Let it grow! 

3. Budget!!! - set budget categories and stick to them - this is the one I am still bad at

 

Practice all of that while you research the credit management part over your next few months of waiting for discharge... 

 

As for the direct answer as to how some people get insane CLs: because everyone is different.

Some people started with better scores/profiles than others. They didn't have as many lates on their credit report when they filed, and their scores were higher pre-BK. They may have pursued a rebuild more aggressively, asking for CLIs sooner and more frequently, etc. They may have had more funds to devote to secured card, SSLs and the like.

Again, everyone is different and you will find that you WILL have limitations when you begin your rebuild, but you ALSO have room to maneuver. What you do within that buffer zone is totally up to you and what you're willing to put in.

 

 

Best of luck!

Ch7 discharged 10/2017. Pre-file FICOs high 400s.
04/2018 EX 644; EQ 670; TU 648
Message 5 of 8
Guyatthebeach
Valued Contributor

Re: New To The Community, I HAVE QUESTIONS !!

brokeandwoke,

 

Welcome to the group! I'm know going through a divorce is hard enough, but having to deal with criminal domestic violence is unimaginable to me. Remember that time will heal those wounds and empowering yourself will help prevent domestic violence from ever happening again. If there is anything I can do, please let me know.

 

With regards to your upcoming bankruptcy, I would I try to find a great credit union( Navy Federal is awesome if you can join) and a good local bank where loan desicions are locally and that offers free checking.  I would use the bank for day to day checking and the CU for savings. You mentioned you're in Georia, you ought to try to see if you can join Georgia's Very Own CU. They are a very conservative but bankruptcy friendly CU. I have a friend in Marrietta that used them after his ch7 and they have been good to him. He got a secured loan, and after it was paid he got a Visa with a $1000 credit line. He also uses them to help with budgeting and financial advice, it's free with most CU's.

 

I use SCSCU(CU in SC), Navy Federal, and PNC Bank. I have the virtual wallet account and love the way you can plan your expenses for the whole month and their rate for their savings account isn't bad either. I used a modified version of Soulmaster's 700 in 24 plan.  I started with 2 secured cards and a secured loan, along with a budget. Now 6 years later, I have amost $200,000 in credit, second car loan at 1.9% and 9 months salary in emergency savings.  My TU score floats between 718 and 725. On Cap1, it says it 741.  If I can do this, you can too.

 

If I were you, I would find a CU and a bank you feel comfortable with and that are bankruptcy friendly. I'd start a workable budget, and start saving money and credit a rainy day fund. Once you make it through your bankruptcy, you already have a student loan and that is a perfect tradeline. Just remember you have to have a perfect payment history, use good credit and cash management, and you will get to own a house.

 

Life's a beach!

 

Guyatthebeach

Message 6 of 8
brokeandwoke
Established Member

Re: New To The Community, I HAVE QUESTIONS !!

thanks yall are so helpful. Heart i love yall. i moved back to VA because i needed to really distance myself from my husband until the case ends.

 

i was thinking about getting another chartway federal credit union account. right now i have SunTrust because that was the only bank that would approve me with my ChexSystems record. I have two more accounts im going to pay off (small amounts 33.30 for Armed forces Bank and 95 to chartway to reopen my account) I am doing good with my suntrust account. i do not have overdraft protection so i cant even overdraft (this was my biggest problem) and it helps. ive started to budget food and lunch. and i have not spent any money on "stupid stuff" (beauty products, grooming, amazon prime deals (Man Sad) )

 

I have the plan laid out but I dont know if it is a good one. so this is what im thinking to do ...:

 

right at discharge

1 secured credit card 

1 credit builders/self lender loan

 

3mo post

get another secured credit card

 

3-12mo post

use the cards and continue making payments on my loan until 12 mo

 

at 12mo request a CLI and renew my loan

 

do this again for the next 12 mo

 

 

 

so by two years I should have good payment history with my credit cards and loans

 

im thinking that i should apply for a mortgage between 2 and 2.5 post discharge ?

 

ill buy a new car after i buy a house

 

my student loans are paid up to date and never late so hopefully that will give me some longevity with history.

 

im going to use cash for everything and start saving up.

 

im using my parents car until i can buy a car wholesale so i will not have any payments on one and my insurance would be liability (just dont want to add that credit line just yet) (dad works on cars so he can fix it if something goes wrong). i also live with them and they understand my situation .. they said i can stay for however long i needed. i contribute by keeping the house clean and buying groceries and occasionally paying the light bill (6bd room house oh my lord yall its like a rent payment lol)

 

can anyone add to my plan or let me know if i could do something differently or if this is a good plan in general ? 

Filed Pro Se: 3/2018 -- Discharge: 6/2018

Discharge Scores: All -450

Short Term Goal: 620 (645, 625, 636 01/2019)

Long Term Goal: 700+
Message 7 of 8
Guyatthebeach
Valued Contributor

Re: New To The Community, I HAVE QUESTIONS !!

Brokeandwoke,

 

I think you have a solid plan.  I would talk to a lawyer as soon as possible.  You need to make sure there are no residency issues and file as soon as possible.  

 

I would make sure you pay back Armed Forces Bank and Chartway CU and get back in their good graces.  You may need to use the them as part of your rebuild.  I think you should be able to find  the lending products at that CU and SunTrust.

 

Keep us informed  of your progress.  

 

Guyatthebeach

Message 8 of 8
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