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Next Steps in the Rebuild

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hoosier64
Valued Member

Next Steps in the Rebuild

I am coming up on 4 months post discharge from Chapter 13. 

 

Current open accounts:

Revolving: Capital One Quicksilver, Mercury, Discover Secured (no annual fees on any of these, practicing AZEO)

Installment: 4 student loans

 

FICO 8 Scores: 679, 658, 675

FICO 5,4,2 Scores (Mortgage): 685, 707, 704

 

I'm planning to pay off the student loans in full once the covid pause on payments and interest is over. Next major goal is to purchase a house, but that's probably 3 years out.

 

1) Is there any difference in rebuild approach to maximize mortgage FICO scores or would I be set with 3 revolving accounts and one open installment loan?

 

2) Is there a benefit to having an open installment loan for the mortgage FICO scores like there is for the FICO 8? 

 

BK13 Filed: 4/19
BK Discharged: 10/22

Starting FICO 8 (10/22): 623 / 612 / 613
Current FICO 8: 691 / 675 / 685
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2 REPLIES 2
TRC_WA
Senior Contributor

Re: Next Steps in the Rebuild


@hoosier64 wrote:

I am coming up on 4 months post discharge from Chapter 13. 

 

1) Is there any difference in rebuild approach to maximize mortgage FICO scores or would I be set with 3 revolving accounts and one open installment loan?

 

 

 


I would think those accounts would be sufficient.

FICO8 current as of : 4-12-24 EQ: 724 TU: 702 EX: 706
Hard INQs last 12 months: EQ: 5 | TU: 8 | EX: 9
Verizon Visa $8500 Amex Delta Reserve $10,000 Care Credit $18,000
NFCU CashRewards $7500 Apple Card $7000 Best Buy $8000 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) 6.95%
NFCU motorcycle loan (2024 Harley Davidson Road Glide - Alpine Green & Chrome) 9.45%
Total CL: $64,000 --- Total CC UTI: 27% --- AAoA: 5.5 years --- Income: $200k
Last app: 4-6-24
Message 2 of 3
FireMedic1
Community Leader
Mega Contributor

Re: Next Steps in the Rebuild

Your go to go. May take a point loss when the installments drop if you have no other loans open. If those are the cards from 4 months ago. Let them grow and scores will age and move slowly up.


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