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Prepping for DC...

WackyJaci13
Member

Prepping for DC...

I filed for Ch. 7 BK on 08/16/2019 (self-file - very easy to do in my juridiction). Had my MOC on 09/05/2019 - no creditors showed up. It appears that I'll be discharged the week of 11/04/2019. I'm reaffirming my car loan (pending approval from the court - even if not approved, have made arrangements with lender to keep making payments as I'm in good standing with them). I have a goal to buy a house in 2-3 years. My current plan is to get a secured card (probably Discover, didn't have an account with them before) and a secured loan with my credit union. As such, I'm saving money to get this done ASAP after my DC (hopefully the day after I get the DC). What I'm wondering is if there is anything else I should do while I wait? Also, what are people's opinions on things like the rent-reporting services that are supposed to help with credit?

 



Message 1 of 8
7 REPLIES 7
philannony
Contributor

Re: Prepping for DC...


@WackyJaci13 wrote:

What I'm wondering is if there is anything else I should do while I wait? 

 


https://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td...

Message 2 of 8
FireMedic1
Super Contributor

Re: Prepping for DC...


@WackyJaci13 wrote:

I filed for Ch. 7 BK on 08/16/2019 (self-file - very easy to do in my juridiction). Had my MOC on 09/05/2019 - no creditors showed up. It appears that I'll be discharged the week of 11/04/2019. I'm reaffirming my car loan (pending approval from the court - even if not approved, have made arrangements with lender to keep making payments as I'm in good standing with them). I have a goal to buy a house in 2-3 years. My current plan is to get a secured card (probably Discover, didn't have an account with them before) and a secured loan (You have a car loan already. You dont need another installment. Wont matter at all.)with my credit union. As such, I'm saving money to get this done ASAP after my DC (hopefully the day after I get the DC). What I'm wondering is if there is anything else I should do while I wait? Also, what are people's opinions on things like the rent-reporting services that are supposed to help with credit?

 


Personally I wouldn't give any CRA all my personal banking info. You will want to wait up to 30 days after DC so all your accounts reflect IIB and 0 balance. You'll see a score boost cause your out of debt then. Then check the pre-quals like Cap1. Dont get the secured. Doesnt graduate. Might be able to get the Plat if they werent burned. Or Disco secured that will graduate in time. Go slow out of the gate. Spread out apps 4-6 months. Another loan wont do any good scoring wise. FICO likes 1 loan at least. More is not better. Keep us updated on how its going. We're more thn happy to help anyone rebuild. Good Luck and your journey to financial freedom! And welcome to the fourms!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 3 of 8
WackyJaci13
Member

Re: Prepping for DC...

@FireMedic have you seen things like this:

 

https://www.nerdwallet.com/blog/finance/credit-report-rent-payments-incorporated/

 

My thought is just that I'd like some credit for my LARGEST bill. In my area it costs more to rent than to own a home, so I'd love to be able to get the credit that I already am making $1400/month rental payments (that's the payment for a $300k mortgage in Iowa...).  Thoughts? Worth the fees?

 

 



Message 4 of 8
WackyJaci13
Member

Re: Prepping for DC...

@philannony wrote:


@WackyJaci13 wrote:

What I'm wondering is if there is anything else I should do while I wait? 

 


https://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td...

 

Ive seen this method...I burned Cap1 and Credit1 in my BK, that's why I want to go with DISCO (plus, it's just a good company IMHO)...do I need to do the secured loan if I have a vehicle loan?



 



Message 5 of 8
WackyJaci13
Member

Re: Prepping for DC...

Thanks for the tip on the vehicle - I was wondering about that Smiley Happy Is it true that they don't have to report it if the reaffirmation isn't approved? I'm sure my CU would still (they are super easy to work with...), but I just wondered if you had read/heard anything in that regards.



Message 6 of 8
FireMedic1
Super Contributor

Re: Prepping for DC...

I'm not one who would go for the credit boost stuff. I like to keep my banking info with my bank. And I wouldnt give it to a CRA that gets hacked. Yes you Equisux. If by chance your reaffirmation is denied. Then you could get a self lender loan.  But most of the time banks will approve reaffirmation. They will get paid. If it was denied. You can pay and drive. But you could turn it in and owe zippo. Then its on the bank. So more than likely there shouldnt be a problem with that. But CU's act differently than regular banks. Another great secured card is Merrick Bank. They will double your CL with good behavior. But Disco would rule since they graduate. Here's the secured card link.

https://www.discovercard.com/application/displayLanding?pageFileId=double-paidsearch-secured&sc=KXNU...






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 7 of 8
philannony
Contributor

Re: Prepping for DC...


@WackyJaci13 wrote:

@philannony wrote:


@WackyJaci13 wrote:

What I'm wondering is if there is anything else I should do while I wait? 

 


https://ficoforums.myfico.com/t5/Bankruptcy/HOW-TO-From-BK7-discharge-to-700-in-24-months-or-less/td...

 

Ive seen this method...I burned Cap1 and Credit1 in my BK, that's why I want to go with DISCO (plus, it's just a good company IMHO)...do I need to do the secured loan if I have a vehicle loan?



 


Capital one is super forgiving. Youll get back in within a year. You can replace the credit one part, with an arrow/lend up, or any other subprime card. Key is to only keep it for 1 year, and not continue to pay the annual payment. 

 

You don't need it, 1 installment loan is fine. I did it anyway. 

 

I followed this plan exactly, and at 22 months I was in the 700's 

 

Good luck. 

Message 8 of 8
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