Rebuilding after CH7 Discharge

[Anonymous]

Hi!

I have a recently discharged CH7. I was discharged in late October 2023. In the bankruptcy, I burned Cap One, DCU, & a local credit union. Previous to this, I had a card with Discover that was charged off & I settled the balance for less than what was owed in mid 2022.

I want to start rebuilding now that I know the *proper* ways to utilize credit so that I can raise my score to hopefully own a home one day, not be subject to super high interest when the time comes to replace my vehicle, etc.

Here’s the thing - I have been utilizing the pre-approval tool on Cap One & Discover intermittently since my discharge to see if I would pop an accept. No dice on either. I took a risk today due to CK saying my approval odds for a secured Cap One were excellent & got denied. I’m not shocked (though the balance on this was under $1k at time of filing, closer to $700), but disappointed that I wasted an inquiry on it. Discover has also been a hard no each time I use pre-approval as well, even for a secured card.

What would be the best way to tackle the rebuilding journey? MyFICO states I’m at roughly a 580, so I know my options are limited. I was hoping that Discover would be more forgiving, or maybe even Cap One despite being burned, but have had no luck.

Any advice is appreciated!

[Shooting-For-800]

Keep trying prequal with Cap One.  They are the most forgiving non-predatory bank.

Check Merrick and keep trying Discover as well.

It gets better.  

GL!

[Horseshoez]

@Anonymous, what ended up kickstarting my rebuild after my Chapter 13 discharge was a high(ish) limit secured card.  What I'd advise you do is shop around for local  banks and/or credit unions and find one which offers a secure card with enough of a limit to cover you for at least a month's worth of spending.  The good news is, if you can swing it, $5,000 cards are available, other lenders see you have a high(ish) limit card, and then become more willing to give you a decent starting limit for an unsecured card.  Better still, even though a secured card reports as secured, it doesn't hurt your chances with other lenders at all.

[MileHigh96]

Definitely keep checking with CapOne. It may take awhile but they will almost definitely let you back in. Some people get in quicker than others, but as has already been mentioned, they are by far the most the most forgiving of the non-predatory banks. It took them 10 months before they let me back in and that was after burning them for around $7K give or take. Others have burned them for more and gotten back in with them sooner, so as always, YMMV.
Also I would check with PenFed because they are BK friendly and if you are eligible to join, Navy FCU is a good one to get into as well.

[Morfeeus]

I opened a checking/savings account with my local credit union less than 1 month after my discharge.  They had a "credit builder" loan that you secured with your deposit.  After making about 6 payments, my credit score started to rebound and hit the low 600's.  I then applied and got approved for a mission lane unsecured visa.  I used it and payed it off every month making sure my CCU stayed below 3%.  After a few more months, I opened an unsecured card with Ally.  It was about a year from my discharge and my credit score had climbed to between 680 and 700 depending on the bureau.  I applied and was approved for a Cap One Savor One with 10k limit a few months ago (I filed on them in my CH7).  I recently applied for the Bilt MC but was denied stating my CH7 so they are not BK friendly.