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Rebuild plan

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Anonymous
Not applicable

Re: Rebuild plan


@kr43002 wrote:

I just applied and now I am a member of NFCU. I am going to hold off until discharge for the nRewards card.


They won't give you an unsecured card right out of the gate. Need to wait a year and have some other new cards reporting for best results. 

Message 11 of 16
Mjhall85
Frequent Contributor

Re: Rebuild plan

I did 300 on the secured card. 

I disagree @Anonymous i was 5 months from discharge and got a unsecured card but I also didn't burn navy in my bankruptcy so that may make a difference. 

Chapter 7 filed 2/3
Discharged 6/30

Fico 8
EQ 681 TU 671 Ex 665
Fico 4 TU 690 Fico 5 702 Fico 2 693
Message 12 of 16
anniea4001
Regular Contributor

Re: Rebuild plan

@kr43002 

Well, I am new to this forum and to the whole rebuilding thing but just to give you a little background on my personal journey. Maybe helps. 

I filled chapter 7 back in Dec 2020. Already had my creditors meeting and just waiting on my discharge.

Like you, I have been doing a lot of reading in this forum about how to approach rebuilding.

 

A few days ago I came accros a company called TomoCredit

No HPs, no credit scores required. This is a charge card and they approve you based on the balance(s) of your account(s) at the time of applying. 

They do report to all 3 bureaus so I figured it was worth looking into. 

Well, I got approved for $1000. Currently about 7k between all my bank accts. 

You do have to link you bank accts for autopay and for them to review you balances for approval but honestly I do not mind at all that it is a charge card as I was already paying my balances in full in the active cards I had before filling. I would ocasionally leave a small balance to be reported but that's about it. Plus my bank accts are normally linked to everything else.

I probably will not keep this card forever but I figured it might be a good way to start rebuilding. Maybe use it for 6 months to build some credit and apply for something better like Cap One or Discover (if they let me in). 

Per my lawyer, I can start rebuilding as soon as I like but I did not want to add any HP or other blemishes to my credit until after discharge. 

I also tried Cap One pre approval page and got approved but will not pull the trigger until after discharge and going over my reports to make sure everything is reporting correctly. 

Message 13 of 16
kr43002
Frequent Contributor

Re: Rebuild plan

@Anonymous I checked the pre qual for no HP. I was approved. im still waiting until after my DC.

BK CH7 1/21 DC 5/21
1+ Year Post BK
Credit Limit: 6000
EDC: QuickSilver 1 1.5% $39 AF
Oldest Account: Tire Card $500 0% APR 6 Months After purchase. 2018. (Survived Bankruptcy)
Message 14 of 16
Girlzilla88
Valued Contributor

Re: Rebuild plan

@kr43002     Honestly and I don't want to sound like a Debby Downer, but I wouldn't rely to heavily on NF prequal tool a lot of people have found it to be inaccurate.     Read up on them here in the Forums Smiley Happy







Message 15 of 16
Anonymous
Not applicable

Re: Rebuild plan


@kr43002 wrote:

So I have done alot of research on this forum and looked into the Fico 8 scoring system alot. This forum has alot of great info in building good credit. my 341 is March 5th. I am unsure if my rebuild plan will work, but here is what I have come up with.

I also know about Credit One being an okay 1 year card for BK’s but I am blacklisted from them. Not IIB, payed then closed over a year ago.

EDIT: Updated 1/22/2021

This is what I plan on doing, and will update the OP and comment as things develop.

Post DC - Check Credit report to ensure everything is posting accurately. If everything is accurate, get the nRewards card, $200 deposit. I am already pre-qualified. Also I will grab a secured loan either through NFCU or Self Financial. I will be saving at least 15% of my income, I didn’t have any safety net before which is why I am going through this.

6 months - Most users report graduation and CLI to 2k. I will also check prequal on Capital One and Discover. Accept whatever each gives me, many data points show that Capital one will offer some sort of card, while it may be awhile on discover. With Multiple Cards i will practice the AZeO method.

12 Months - At this point if I cannot get 3 total credit cards from Capital one, NFCU and Discover I will look into a Sky Visa, Tomo Credit or Self Financial Secured Card. I will try and get a car loan at this point.

18 Months - Everything Should be gardened at this point. At this point I will try and go after a NFCU Cash Rewards Card either as a 4th card or replacement to the nRewards card. Preferably 4th card to keep the age of oldest account high.

24 Months - At this point I am happy with my card lineup compared and will just garden them until major banks like Chase and AMEX will let me in. I will start preparing for a mortgage.


Congats on your credit rebuild. It is a long journey. Wanted to share my experience with you as I have recently started my rebuild as of June/2020.

 

My goals were to open three trade lines without using a hard pull. I wanted to save the hard pulls for when I open unsecure debt. I wanted to use the big banks but new most of them would require the hard pull. I was also not worried about if the trade lines would graduate from secured to unsecured. My plan was to acquire three secured TL’s and then replace the secured TL’s with unsecured credit cards.

I started out with a 450ish credit score in June/2020 I applied for the following accounts.

  1. OpenSky Secured $300 June/2020
  2. AssentCard Secured $400 June/2020
  3. First Progress Secured $500 July/2020

 

Each card no credit pull but they all have AF’s ranging from $35-49

 

What I loved about each card was low risk high reward if payments were made on time. I used each card to the max and made multiple payments each month for all cc’s. Starting out I had no active credit accounts other than 14 collections and 1 major charge off. I had aged credit that I had paid off years ago credit cards and a mix of loans that I closed all of them a while  back. No credit pulls for almost 9 years.

Good news after second month OpenSky offered me a second card but I declined because my plan was now only for unsecure cc’s. After one month AssentCard offered me a second card an I opted for that one because it was from their servicing company First Progress which means that I would have three separate lenders.

 

The Bad each card has an annual fee and none of these cards will graduate to unsecure credit cards. No problem when My credit is worthy I will app for better cards. I will close the secure accounts right before I have to pay the annual fee, but if they waive them, I will keep them open. I move a little be slow and did not app for many cards and did not want to take any unnecessary point hits.

More good news, once I hit my 7-statement month, I thought this would be a good time to start looking for prequal sites that I learned about in our community forums. I went to discover no offers. So I used their free credit score to figure what I needed to know. They said I was at 65% utilization. Well that is not going to work for most. So I waited tell report updated then used myfico to check scores and I came in in the low 600’s and low 600’s with discover. However, even though I lacked offers the knowledge I gained was awesome. Just seeing where I stood with creditors and knowing how cc’s update and when their cycles are helped me know when to app.

 

Now with knowledge in hand, I prequalified for the following.

Discover: Preapproved for Secured (Hear preapproval is solid)

Cap1: Preapproved for Unsecured and Suggestion for secured. (Hear preapproval is reliable)

Amex: No Offers (Unknown)

Dell Financial: Prequalified for $3,000 (unknown how solid prequal is)

I decided not to app for any of them as of yet. I am now down to 6 collection accounts and 1 major charge off. 2 of the collection accounts have been paid for with the PFD option while one of them was just paid to be updated to zero balance. Once my credit reports update to paid collections I will prequal again and see if my chances improve with discover and Amex.

I am now knocking on the door of 650 in less than 9 months almost a 200-point increase.

I hope this helps you with your rebuild.

 

 

Message 16 of 16
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