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Post Ch 13 discharge and rebuilding--what's next?

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Valued Member

Post Ch 13 discharge and rebuilding--what's next?

Hi, folks. I've been lurking and trying to formulate my thoughts for a few months

 

I was granted my Ch 13 discharge 5/31/17 so I'm currently almost 5 mo post discharge.  I needed a vehicle badly in June so I applied at dealership and was approved for Capital One auto loan (11.49%--yep, pretty high).  I knew my credit was probably just north of terrrible and I should have pulled it to look before applying for the loan.  My question is this--can I refinance my auto loan as my credit improves? Below are some things that I've done so far: 

 

 

  • Auto loan (Capital One) - paid on time since Jul 2017 
  • Denied by Georgia Own Credit Union in Jun 2017 (not sure what to do here)
  • Student loan that is automatically deducted each month (paid on time)   
  • Credit score in Jul 2017 = 596 (Exp), 493 (TU), 554 (EQ)  (CreditCheckTotal)
  • I combed over my credit reports to correct multiple errors (not sure why I didn't do this BEFORE I applied for ANY credit!). 
  • I received pre-approved offer via mail for Credit One card in Sep 2017 (approved for $400 and increased to $600 in Oct 2017)
  • Credit score in Sep 2017 = 641 (Exp), 588 (TU), 651 (EQ) (CreditCheckTotal)
  • Mortgage was not reaffirmed

My credit score goal is 720, but I feel a bit 'lost'!   I welcome any comments and/or suggestions on the way forward with credit rebuilding.  Thanks in advance.

Message 1 of 16
15 REPLIES 15
New Contributor

Re: Post Ch 13 discharge and rebuilding--what's next?

Sounds like you are doing fine.  Make sure everything is paid perfectly moving forward.  I would pass on the Credit One card and look at getting a Capitol One, secured if you have to.  Rate on the car is a bit high, I got a 6.5% rate while I was in Chapter 13 so it's possible to lower that.  If you have a military background or are related to a vet, join NFCU and get a secured card there too.

Oct 2017 Scores MyFICO FICO 8

Equifax 633
TU 582 (Suck it TU)
Experian 615


July 2018 Scores MYFICO 8
Equifax 700
TU 674
Experian 689


November 2019 Scores(24 mos post CH13 discharge) MYFICO 8
Equifax 783
TU 799
Experian 794
Message 2 of 16
Valued Member

Re: Post Ch 13 discharge and rebuilding--what's next?

Thanks for the feedback.  Maybe I need to correct the Credit One line to read that I actually have the card--oops...

 

Should I have more than one CC? Are my chances better at obtaining a Cap1 CC since I have the auto loan?

Message 3 of 16
Community Leader
Senior Contributor

Re: Post Ch 13 discharge and rebuilding--what's next?

Were you 3 or 5 year? If 5.... see if your preapproved for Amex or Discover and Cap1. 

 

Goal is is to get rid of credit 1 with better cards. Please let us know the results. 

AMEX Platinum, Gold, Reserve & SPG | PenFed PR VS | NFCU FS VS | Discover IT | Citibank DC WEMC l Capital One Venture VS | Nordstrom VS l Banana Republic LUXE V I Lowes I Macys I Wayfair I
Message 4 of 16
Valued Member

Re: Post Ch 13 discharge and rebuilding--what's next?

I was a 5 year. I will do that and check back in. 

 

Any thoughts on auto loan refi?

Message 5 of 16
Valued Member

Re: Post Ch 13 discharge and rebuilding--what's next?

I wasn't prequalified for AMEX or Cap1, but Discover offered the Discover It card. Should I try for that one?

Message 6 of 16
Community Leader
Senior Contributor

Re: Post Ch 13 discharge and rebuilding--what's next?

Was it a real pre-approval with a set APR? If so, I would definitely go for it! 

 

 

AMEX Platinum, Gold, Reserve & SPG | PenFed PR VS | NFCU FS VS | Discover IT | Citibank DC WEMC l Capital One Venture VS | Nordstrom VS l Banana Republic LUXE V I Lowes I Macys I Wayfair I
Message 7 of 16
Valued Contributor

Re: Post Ch 13 discharge and rebuilding--what's next?

What's different on your TU report that's causing that score to be so much lower than the others? Were any of your accounts already in default when you filed BK? If they were, you may be close to requesting an early exclusion on them. Have you pulled your reports from annualcreditreport.com to check when accounts will be dropping off?


EQ 778 EXP 782 TU 729
Message 8 of 16
Valued Member

Re: Post Ch 13 discharge and rebuilding--what's next?

 

*Edited [post*  It looked to be a range of APRs, but I checked again the pre-offers were Discover It and Discover it Chrome Card.  Both had APRs of 23.99% (high, but it is what it is right now). Thoughts?

 

Also, I looked at my credit reports and TU is showing student loan late payments in 2012 and I was not late on those payments.  The loans were in forbearance at the time.  I have disputed that on both TU and EQ.  

Message 9 of 16
Community Leader
Senior Contributor

Re: Post Ch 13 discharge and rebuilding--what's next?

Discover will lower your apr after your account has been open a year. Also, if you don’t carry a balance, the apr won’t mean anything. 

AMEX Platinum, Gold, Reserve & SPG | PenFed PR VS | NFCU FS VS | Discover IT | Citibank DC WEMC l Capital One Venture VS | Nordstrom VS l Banana Republic LUXE V I Lowes I Macys I Wayfair I
Message 10 of 16
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