Post chapter 7 credit rebuild

[eliza9487]

I filed for chapter 7 BK on January 24th of this year and had my 341 meeting on February 28th. My FICO score is currently 542 and I am wondering if it will increase/decrease more once the bankruptcy has been discharged? Also, I am going to get a secured CC after my discharge and am wondering how much I can expect my score to increase with on time-more than minimum payments each month. I know that there isn't any number that is accurate and that it differs for everyone, but anyone that has been in my position with experience in chapter 7 and score increases, I'd love to hear from you!

Thank you!

[Credit_Me]

I started out @ 578 on EQ 6/12. Discharge was 2/12 but I didn't get to start rebuild until 6/12.  Made sure all my report information was reporting correctly (IIBs) and disputed anything I could possibly have a reason to dispute. Apped for a Cap1 card and then a creditone card. Also, got a credit builder loan from a local credit union. With those 3 account and 4 small student loans I managed to be @ 650 today. I think it's a little higher once my balances update in a few days, probably no more than 660. My transunion is a bit lower, last update had me at 627.

Hope that helps you.

[Guyatthebeach]

If you play your cards right (pun intended), you could see a small increase after your discharge and 100 point or more increase after the first year of discharge.  Below is what I did. Hope this helps!

My rebuilding credit story

‎03-10-2013 07:45 PM

After losing my job (contract expired), I basically had to file chapter 7 bankruptcy in November 2011. It was discharged February 2012 and $127,000 in debt was erased. I discovered this site and based my recovery on everyone's experiences on this site.

The day my bankruptcy was discharged, I went to my bank, PNC, and opened a secured card with a $500 credit line that has a $39.00 annual fee. The same day I opened a secured card with a limit of $2500 that has no annual fee at my credit union. While there I also opened a secured loan for $500.00. That loan was paid in full in 4 months, so at the sixth month mark I would have a post-bankruptcy loan paid in full. Both pulled TransUnion the same day and my score was 515. I basically paid the accounts in full every month and never went over 30% utilization for first three months.  For the next three months, my utilization went to 19%. I also spent the first six months correcting all the errors on my credit reports from the bankruptcy.

At the six month mark, I went back to PNC to see if I could get an secured card. I was declined. The loan officer told me he couldn't override the underwriter, he called on my behalf with me in the office. The underwriter told me I need to have a minimum of 12 months of perfect payment history and he also said I was exactly on the right track.  I also learned

they can see how much debt was discharged. I took that as a learning experience. I then went to my credit union to see what they could do for me. They offered me an unsecured no annual fee credit card at 10.99% with a $1000 limit and an unsecured line of credit that I can use anytime. I use the credit card and PIF monthly and the loc is for emgerency use only (haven't used it yet)! Both places pulled TransUnion, at the credit union my score was 647 and at PNC it was 651.

I wanted to add another credit card and another installment loan to my mix. I went to another credit union and was declined for a credit card, discovered they use Elan which is basically US Bank, a card company I burned. They did approved me for a secured loan at 3.0% which I took. Just like the other loan I paid it off in 4 months, so it will use PIF at the one year mark. I still wanted another credit card in my mix.  I declined by FNBO, American Express, and GE and all said due to bankruptcy. I didn't burn FNBO and AmEx but did burn GE. I was approved for a Barclay Apple Visa for $2200 and purchased an ipad. While I was on the phone with Barclay, I noticed they offer the Barnes and Noble card and I asked the guy if he could also give a B&N MC. He took $500 to the MC. I discovered my Dell account was still opened so I bought a laptop at 0% for a year. My utilization briefly went up to 30% but went back down to 18%.

At the one year mark, I decided to only apply for an unsecured installment loan. My other credit union approved me for that with no problems. I will have it paid off within 6 months. They actually pulled Experian and my score was 660. The loan officer at PNC pulled my TU and it was 667. My goal is to garden for the remaining part of the year. I want to get my utilization for credit cards under 9% and have my loan paid off before I attempt to get PNC unsecured card which I will try to do in August. I am hoping to buy a new car after the two year mark of my bankruptcy discharge which is February 2014 and get my credit score above 720 as well.  I'm happy with my 4 credit cards, an open line of credit(not used just nicely aging), 2 PIF secured installment loans, and an unsecured installment loan.

[Guyatthebeach]

After losing my job (contract expired), I basically had to file chapter 7 bankruptcy in November 2011. It was discharged February 2012 and $127,000 in debt was erased. I discovered this site and based my recovery on everyone's experiences on this site.

The day my bankruptcy was discharged, I went to my bank, PNC, and opened a secured card with a $500 credit line that has a $39.00 annual fee. The same day I opened a secured card with a limit of $2500 that has no annual fee at my credit union. While there I also opened a secured loan for $500.00. That loan was paid in full in 4 months, so at the sixth month mark I would have a post-bankruptcy loan paid in full. Both pulled TransUnion the same day and my score was 515. I basically paid the accounts in full every month and never went over 30% utilization for first three months.  For the next three months, my utilization went to 19%. I also spent the first six months correcting all the errors on my credit reports from the bankruptcy.

At the six month mark, I went back to PNC to see if I could get an secured card. I was declined. The loan officer told me he couldn't override the underwriter, he called on my behalf with me in the office. The underwriter told me I need to have a minimum of 12 months of perfect payment history and he also said I was exactly on the right track.  I also learned

they can see how much debt was discharged. I took that as a learning experience. I then went to my credit union to see what they could do for me. They offered me an unsecured no annual fee credit card at 10.99% with a $1000 limit and an unsecured line of credit that I can use anytime. I use the credit card and PIF monthly and the loc is for emgerency use only (haven't used it yet)! Both places pulled TransUnion, at the credit union my score was 647 and at PNC it was 651.

I wanted to add another credit card and another installment loan to my mix. I went to another credit union and was declined for a credit card, discovered they use Elan which is basically US Bank, a card company I burned. They did approved me for a secured loan at 3.0% which I took. Just like the other loan I paid it off in 4 months, so it will use PIF at the one year mark. I still wanted another credit card in my mix.  I declined by FNBO, American Express, and GE and all said due to bankruptcy. I didn't burn FNBO and AmEx but did burn GE. I was approved for a Barclay Apple Visa for $2200 and purchased an ipad. While I was on the phone with Barclay, I noticed they offer the Barnes and Noble card and I asked the guy if he could also give a B&N MC. He took $500 to the MC. I discovered my Dell account was still opened so I bought a laptop at 0% for a year. My utilization briefly went up to 30% but went back down to 18%.

At the one year mark, I decided to only apply for an unsecured installment loan. My other credit union approved me for that with no problems. I will have it paid off within 6 months. They actually pulled Experian and my score was 660. The loan officer at PNC pulled my TU and it was 667. My goal is to garden for the remaining part of the year. I want to get my utilization for credit cards under 9% and have my loan paid off before I attempt to get PNC unsecured card which I will try to do in August. I am hoping to buy a new car after the two year mark of my bankruptcy discharge which is February 2014 and get my credit score above 720 as well.  I'm happy with my 4 credit cards, an open line of credit(not used just nicely aging), 2 PIF secured installment loans, and an unsecured installment loan.