Rebuild attempt 5 years after BK

[Anonymous]

Hello!  I can not believe how knowledgeable you folks are!  This place is awesome!

Can you please see if I am going about my rebuild properly?  Please let me know if I need to supply any more info.

FICO 8 scores

EQ 609

TU 603

EXP 607

Filed for BK 02/2015    BK discharged 05/2015

Credit file frozen on all 3 CRA’s

Opted out of offers

Burned in BK 

Sears

Capital One

BofA

HSBC

Kinecta Fed C/U Credit Card

Kinecta Fed C/U Auto Loan

Very thin file, just one current CC Capital One QS (just PC’d from Platinum)

$500 CL opened 03/2017  $0.00 balance, never late

Zero HP’s

Goals are to have 3-5 CC’s and 1 car loan or self credit building loan/raise current FICO 8 score from “fair” to “good”.

Regarding items to attempt to remove from reports:

All 6 IIB accounts show perfect payment history until the 2 months prior to BK.  I assume I cannot clean these up or challenge them as they are legit? I just need to wait for them to fall off in 2022?

I have approx 20 old addresses in California to remove (just moved to Oregon from California). Will the question arise, “are you saying you never lived in California?”, or is it no big deal?

Also, there are 6 variations of my name.  I assume I remove them all but my full legal name?

Will the question arise “Have you not gone by any of those names”?  (some have middle initial, some have full spelling, some have short name w/initial etc.)

My plan is to pre-approve online and apply for the following:

Discover IT (sounds like this is an easy-ish card to get)

Capital One (see if the will give me a second card)

Citi (I’ve read that they are HP sensitive and I should probably apply to them first)

Possibly one of the Amazon cards?

I closed an Amex Green card in good standing in 08/2014 (opened in 2008, looking to get that aging back) .  I am thinking I need to wait until 5 years and 1 month before I try them?

I am a new member of a credit union. I will try to talk to a rep about my chances of getting a CC and auto loan with them with my weak credit before I apply and suffer a HP or 3.

Last wrinkle.  I hit a deer (poor guy) and wrecked the front end of my old junker car (only had liability insurance).  I’m going to total it. I am looking to get another beater, in case something like that happens again. Should I pay cash and save $ on full coverage insurance, or should I finance it for the potential credit boost?  If I pay cash, I would open a Self.com credit builder loan in lieu of the auto loan. Which one of the 4 loan options would be best for my goals? The options are $25 or $35 per month for 24 months, or $48 or $150 per month for 12 months

Sorry for the massive wall of questions.  Looking forward to implementing your advice!!!!

Thank you all very much in advance!!!!!!

Eddy

[Tuscani]

Your scores seem low to me five years post BK. Even with only one account. Any derogs since DC? I would add another revolving or two and get an installment tradeline e.g. car loan or personal loan. No one will ask why you are disputing addresses or name aliases. As long as the IIB accounts are $0 and show IIB, they are reporting correct. The payment history before filing is what it is but essentially is almost irrelevant considering the BK itself so do not sweat it. I say get another beater for now.. go the self lender route for the installment so you can get your scores up and obtain the better rate when you are ready to finance the car. 

[Anonymous]

Awesome.  Sounds good.

Zero derogs. One of the creditors is reporting "Petition for chapter 7", all others say "discharged under chapter 7", is this a problem? I'm guessing the low score so far out from BK is probably due to unemployment for a long time. I didn't use the Capital One card until I got a job.

How do my card picks look?

Which loan amount and duration?

Thanks for the reply 

[Tuscani]

The lower scores have nothing to do with your employment status. Do not try Citi yet. Discover maybe and probably only the secured. Another CAP1 would not hurt. Also look into Open Sky and for sure ask your CU what programs they offer. At this point they may offer you a CC and a small rebuilder loan. 

[FireMedic1]

Im surprised you waited so long to get going again. Yes check Cap1 pre-qual. No QS1! They will approve you. Also check Disco pre-qual. Pretty good shot. But the scores might be iffy. If they offer secured. Its graduates. AMEX is 5yrs 1 month if they werent burned. The problem really is low scores and not much credit history outside of the 1 card you have now. But try those 2 and then you will see a score boost with 3 cards. Grab your used car for cash. And grab a self lender. Or ask the CU if they have a SSL rebuilder loan too. Keep us updated please. Good Luck! Get going!

[Tuscani]

I am glad this post was created as it is a good reminder for those starting their rebuild journey. That reminder being it is never too early to start rebuilding once you are DC'd. There is the assumption that rebuilding happens organically with time and no strategic moves needed on your own part. This is false. Yes, if you do nothing the impact on legacy items lessons, but you still must take the initiative and come up with a plan of action.. for example, following the "BK7 discharge to 700 in 24 months" method. 

I still feel your scores are very low given the information you shared. Generally, people see mid to upper 500s and even over 600 post DC. Regardless, I feel FICO is awaiting to reward you so to speak; however, that requires more examples of positive and responsible history since DC. 

OP,  you have done great in that you have one positive TL and no derogs in the 5 years since DC. Congrats! You just need to take it a step further now. I would predict not to far after adding another CC and the loan you will get 50-75+ pts minimum. Keep in mind the AZEO method as well.

[Anonymous]

Thanks for the advice and the motivation!  I'm going to attack tomorrow when I have funds available in case I need to fund the Disco Secured Card.  Will post results.

The long wait was due to me waiting for my life and my health to straighten out.  I realized that's not going to happen any time soon, so this is as good a time as any

Thanks again!

Eddy

[FireMedic1]

---

@Tuscani wrote:

I am glad this post was created as it is a good reminder for those starting their rebuild journey. That reminder being it is never too early to start rebuilding once you are DC'd. There is the assumption that rebuilding happens organically with time and no strategic moves needed on your own part. This is false. Yes, if you do nothing the impact on legacy items lessons, but you still must take the initiative and come up with a plan of action.. for example, following the "BK7 discharge to 700 in 24 months" method. 

I still feel your scores are very low given the information you shared. Generally, people see mid to upper 500s and even over 600 post DC. Regardless, I feel FICO is awaiting to reward you so to speak; however, that requires more examples of positive and responsible history since DC. 

OP,  you have done great in that you have one positive TL and no derogs in the 5 years since DC. Congrats! You just need to take it a step further now. I would predict not to far after adding another CC and the loan you will get 50-75+ pts minimum. Keep in mind the AZEO method as well.

---

Bravo! +1!

[Anonymous]

I'm glad this may help some folks.  Thank you so much for your time and widom!

The only other thing I can think of that may be lowering my score is that I owed the IRS and California Employment Developement Dept. (EDD) money since 2015.  I just paid them off a month or two ago.  They dont show anywhere on my reports that I can see.  Not sure if they were ever on there as I haven't check reports for a long time.

Thanks again!  Will keep posted.

[CH-7-Mission-Accomplished]

As someone else said, don't bother with Citi before 7 years post filing (and maybe not until the BK is off your reports).
Definitely go in and dispute all of your written off accounts.   I got rid of about 2/3 of my accounts includded in bankruptcy (depending on which credit bureau -- they're  not all the same) -- including American Express,  Amazon, Chase, Dell, and a couple of others whose names escape me.   Each one of those chargeoffs hurts your score more so getting rid of even one or two will raise your scores.   People who successfully get to "700 in 24 months" have invariably gotten rid of all their IIB accounts or they only had medical debt or one some other singular item that they challenged off.

If it were me, I would get the OpenSky since there's no credit check (secured, $200 minimum I think) and the Discover secured.   Your scores are very low for this late in the game.   By adding two more revolving cards and a share secured loan or self-lender loan, you should easily hit 620-650+.   If you are eligible for Navy Federal, they will be your best friend but don't apply for their unsecured cards until your scores get boosted.

Good luck.