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Same journey different outcome

svtthis0717
New Member

Same journey different outcome

My journey in life has led me down a path to recovery.......again. I won't get into why but after 8 years of successfully rebuilding the wheels came off and had to file BK7 once again. The good news is this time is so much easier than last (3rd times a charm right?). Anywho, I know this is a no no but I did check with my attorney first (I had a well known attorney who is very good and was even commended by the trustee for being great during my 341 meeting) and applied for credit BEFORE my discharge. My discharge isn't scheduled to be done until august 3rd, but again my lawyer said it wouldn't hurt anything only that I could face a lot of denials due to any new credit I get, could technically, be included in my petition prior to discharge. So, I did go in with skepticism that I would in fact face a lot of denials because again I have 2 BK's showing (the old one not due to fall off till sometime next year I believe). Unfortunately, I burned a lot of good creditors so my options are already limited in my rebuilding because of that. Heck, even capital one said no. 

 

So, I had to get desperate and apply with first premier and credit one, but they were unsecured even though the fees and interest are extremely high. Side note when you operate a finance company and your interest rate is so high that you can't take everybody who applies  there's a problem (anything with more than I think 30% interest rate active duty members cannot apply). But these credit cards aren't meant to be charged with anything more than like a 1.00 per month to aide in your rebuilding effort. I grudgingly pay my fees with the understanding that rebuilding is expensive and that these predatory credit cards play a role and have to be kept at a minimum.

 

After these 2 credit approvals (400 each) I applied at self for a credit rebuilding loan to aide in my rebuilding effort and optimize my score even further. Next, I did research on SDFCU. I found that they were pretty easy to get a secured card with. After applying for a savings and checking (denied for checking due to chexsytems items) I was approved. Finally, I applied for the secured card and was instantly approved for up to 2,000 limit.

 

So to recap, I have 3 credit cards and an installment loan to report 1 month prior to the discharge that takes place in august. I plan on rebuilding with the sharks for a year and then kill off first premier and creditone before the AF kicks in. Hopefully by then discover or capital one will give me way back in.

 

Cliff notes: rebuilding is expensive and takes a long time

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4 REPLIES 4
Neblinosa
Regular Contributor

Re: Same journey different outcome

I hope the 3rd time sinks in.  

 

Not to be insensitive, but you need to put on the brakes and step away from this credit game you are in.  There is clearly a flaw in your money management  plan if you are filing for the 3rd time.  Why are you in a rush to start rebuilding?  Seems like you a building on quicksand and not solid ground.  Figure out what you need to do to not end up here a 4th time. Set a budget.  Spend below your means.  Save money for a rainy day.  You just dont fall into bankruptcy 3 times.  Something is wrong that needs to be fixed. 

Message 2 of 5
JohnKenny
Contributor

Re: Same journey different outcome

@Neblinosa I'm glad someone said it, I was thinking the same thing.  On 3rd BK and it's not even discharged yet and the OP already applied for credit cards.

Message 3 of 5
FireMedic1
Super Contributor

Re: Same journey different outcome

The best thing to do now is simple. I say it many times. If you cant pay it. Dont charge it. Paying interest is like driving down the highway and throw a dollar bill out the window each mile. Now are you going to back in traffic and get that dollar back? Hope not. Let cards pay you to use them as in cash back. You are a business. Dont pay interest. Its deducted from your cash back profit. Let yourself make the profit, not the creditors. Good Luck and go slow this time.





My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 4 of 5
ALLgoodABQ
New Contributor

Re: Same journey different outcome

Coming from a similar situation, I am almost one year post 2nd bankruptcy, and have recently slowed my desire for obtaining credit.

 

Just to offer a bit of a background, my first BK was due to me going on a check writing spree when I was young, and having not been educated on credit or proper money management. I didn't even know what credit was until mine was already bad from collection accounts and what not. Started to rebuild my credit around 2007 buying my first car and having a couple small credit cards, was almost in the 700s when the economy crashed, lost my job in 2009 and all went to crap again. Didn't even look at credit again until about 2014 when I started my current job at Apple, and eventually started to rebuild as old collections and charge-offs started to fall off, most of them settled. Jump to 2018 when my grandmother became ill and needed someone to live with her and help care for her. I took so much time off work that I was struggling to pay my dream truck i bought, my 10 credit cards that initially were all managed until i had to start charging to supplement my income, and my student loans. I contacted the bank to refinance my truck, but they wouldn't because of my CC usage, although I was showing a perfect payment history, since all my previous problems had fallen off. Only thing that remains is 18 late payments on my 6 student loans that went 120 days in 2014. So with no other options, I filed my 2nd BK last May, DC August 8th. My attorney told me to stop paying everything, which kind of screwed me because now all my accounts show that last 30 days late before everything was closed. So i'm back to square one again, slowing trying to gain the trust of banks again, although some I burned like AMEX, Sync, Barclays, Affirm, and others will be awhile from what I read.

So, all I can say is, as much as I loved the feeling of having credit cards, applying and almost getting approved for stuff, take your time. The cards will be there. Right now I have 3 cards, Ollo for $1k, CreditOne for 300, and Target Red for 300. All of them paid off this last month, since being in quarantine had me spending NO money, so it worked out. I also have a Fingerhut for $500 that i've never used. I'm itching to try for more, but i'm wanting to buy a house, so trying to focus on that. 

Sorry for the long reply.

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