Post-BK: Course of Action?

[LiquidFox]

Hi board!

I'm seeking advice on how to re-establish/repair my credit profile after filing for BK in 2008.

My Info:

Filed Ch 7 (2008)

Opened Secured Visa - Public Savings Bank with credit limit $300 (2009)

No other accounts opened at the moment.

Scores:

TU: 658

EQ: 662

Score Stimulator Suggests:

Pay bills on time for 24mos. If done, TU score will increase to 728-768; EQ score will increase to 742-782.

The reports I just pulled state that the last time I paid late was 21 months ago (before filing BK). I haven't had a delinquency since.

Questions:

1. Does this mean that I have 3 months left before my score starts to improve as stated in the score stimulator? OR is it 24 months after I opened the Secured Visa card?
2. Is the suggestion from the score stimulator the best and only course of action?
3. Should I consider opening another CC? OR adding other types of accounts (ex: car) to expand my credit diversity?

Your feedback and advice is greatly appreciated.

In Success,

KF

[Anonymous]

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@LiquidFox wrote:

Hi board!

I'm seeking advice on how to re-establish/repair my credit profile after filing for BK in 2008.

My Info:

Filed Ch 7 (2008)

Opened Secured Visa - Public Savings Bank with credit limit $300 (2009)

No other accounts opened at the moment.

Scores:

TU: 658

EQ: 662

Score Stimulator Suggests:

Pay bills on time for 24mos. If done, TU score will increase to 728-768; EQ score will increase to 742-782.

The reports I just pulled state that the last time I paid late was 21 months ago (before filing BK). I haven't had a delinquency since.

Questions:

1. Does this mean that I have 3 months left before my score starts to improve as stated in the score stimulator? OR is it 24 months after I opened the Secured Visa card?
2. Is the suggestion from the score stimulator the best and only course of action?
3. Should I consider opening another CC? OR adding other types of accounts (ex: car) to expand my credit diversity?

Your feedback and advice is greatly appreciated.

In Success,

KF

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Hi Liquid!  Glad you're having fun with the simulator.  It was my favorite toy when trying to figure out how to rebuild. 

The simulator is saying pay bills on time for the next 24 months.

You can also pick the option to pay x$ each month for the next 3 months and see what your simulator gives you.

You should be able to pick up a nonsecured card, if you want one.  Have you looked at goodwilling that 21 month old late?  Do you have any other lates?  You may be able to get your CR all spiffed up and shiny before app'ing.

If you tell us a little more about your lates or any other derogatories on your account, you'll get some great feedback.

Also, after you've cleaned up your reports if you like/need to, check out the BK friendly CC's thread.  Here:  BK Friendly Credit Cards Listed (also sticked under helpful threads at the top of the Credit Cards forum).

Good luck on your rebuilding efforts, it'll all be worthwhile!

[LiquidFox]

Hey beamMEup,

I appreciate your reply and feedback!

I had no idea that I could 'goodwill' my 21 month late payment. Throughout my credit history up until about 2-3 months before filing Ch 7 I was never late; I included 5 CC accounts in the BK. The only reason why I filed is because I wanted to quit my job to head back to school, thus I wouldn't have the income to uphold making payments. My debt to credit ratio was extremely high and it started to bring my 720 high down.

At the moment I only have 1 secured visa card which I don't use. I mainly use my bank debit card or cash.

The info from my Equifax credit report says this about what's hurting and helping my score.

What's hurting my FICO:
1) I have a public record and serious delinquency on my credit report.
    - Number of accounts that were ever 60 days late or worse: 5
    - Number of public records on credit report: 1 (BK)

2) I have a short credit history.
    - My oldest account was opened: 8 years ago
    - Average age of accounts: 5 years

3) I have multiple accounts showing missed payments or derogatory descriptions.
    - Number of accounts with a missed payment or a derogatory description: 5

4) I recently missed a payment.
    - My most recent late payment happened: 1 yr 9 mos ago

What's helping my FICO:
1) I've limited the use of my available credit
    - Ratio of my revolving balances to your credit limits: 0%

2) I currently have a good number of credit accounts.
    - Number of my credit accounts in good standing: 14 accounts

Score Stimulator Says:
If I pay my bills on time for the next 3 months my EQ score will increase to 722 - 762; TU will increase to 658 - 678 (not much difference). Paying my bills on time for the next 6 months, TU will increase to 718 - 758. Do you know why the agencies differ on this matter by 3 months?

Thank you for suggesting the CC thread. I'll definitely check it out!

Is this enough info to get more feedback/advice?