Score forecast 2 years after CH 7 discharge?

[Harriet]

Hello, I’ve been hovering a month now and thought I’d throw out my scenario and get some wisdom from you folks.  I divorced not long ago, income is fine and I’m adjusting as well as I can. Unfortunately my ex had run us into a ton of debt that last year, he argued the divorce even though he blew up the marriage so I had higher legal fees too, it was hell.   I have 25 grand in cc as a result.  I haven’t given up yet but I’m seriously looking at ch 7.  I can take care of myself, just having a hard time getting the debt down. My 0% promotions are ending, haven’t tried for new ones yet but if I can’t move this debt or get a consolidation loan, I’m going to sink. I won’t stand a chance at rates in the teens. 

I need to assume my home loan eventually, that’s number one.   The quickest way may be going ch. 7 then waiting two year, it’s VA, then applying again when my DTI numbers work.  My score will need to be a minimum of 620, the middle score, or it’s an automatic decline. 

I’ll reaffirm my mortgage and my car loan in the bankruptcy.  Otherwise I didn’t want to get new credit, my normal is just having one for convenience, so I can wait down the road for another cc, it’s not a need. 

Knowing this situation do you think I could get to 620 in two years after discharge w just my home and car and nothing else?

Thanks in advance.  

[Anonymous]

You want 620 two years after discharge? I know nothing about the mortgage loan you're wanting but to answer the 620 question...You can do that. Look up the 700 in 24 months post on here.

You'll be able to get credit cards to help with the process... its advised that you have one installment loan and 3 credit cards for maximizing your fico 8 score. You can get more but it's not necessary.

[sarcean1]

My gf just went through Chapter 7. Within 2 months of discharge she was over 620 and within 4 months a 650 on all three. Within two years you can be 700+ without a sweat! Its actually really easy after discharge, pickup a couple credit cards. Treat them responsibly and grow limits. Do a self loan/self lender account. Just paying an auto loan. Just keep utilization low, pay on time, and have a good mix of credit and you will blow past a 620 quite quickly.

[Harriet]

Seems too easy.  I did read a lot about buying a home after bankruptcy and so many sites said no new debt. I guess the trick is not carrying a balance.  I looked up the secured card from NFCU, the limit is so low I assume you pay the balance before the statement closes or you’ll hurt your credit. 

So ill I’ll have a mortgage already, one car loan and get the secured card months after checking credit to make sure the bankruptcy reported correctly.  I don’t want multiple credit cards.  In the good ol days when my score was over 800 I only had a mortgage, maybe a car loan and one cc.  So that’s my goal.  I haven’t given up yet.  

Thank you you for your replies.  

[kiea]

After discharge my score were in the high 500's.  After I got 3 credit cards and about 4 months later my scores were around 650.  It has been almost 2 years for me and my scores as of this morning are around 680 on all 3 reports and the only reason it's that low is because my utilization right now is at 38% due to Christmas shopping in December.   Also, my mortgage scores are in the 700s.

 You should be well over 620 in 2 years but from what I understand about credit you need revolving credit in order to maximize your scores.  So you may need to get 2-3 cards for your credit mix. Good luck with rebuilding.

[Harriet]

Thank you. That’s still impressive scores for less than two years after bankruptcy.  

How do you all get your scores?  Are you really paying for the myfico subscriptions?  Seems very expensive.  

Currently I use my cc companies free score on my statements and usaa uses experian, it’s free and updates once a month.  

I’m applying to assume my mortgage now although I’m expected a decline because of dti, I’ll be curious what scores I have from their point of view. 

[kiea]

I get my scores from Experian membership but they only provide you with FICO 8 score for Equifax and Transunion. If I want to get my mortgage scores I pay for it on myfico.

[Harriet]

If y’all don’t mind explaining what score 8 is? And I didn’t know there were separate scores for mortgages? Are they usually higher or lower than fico?

[FireMedic1]

---

@Harriet wrote:
If y’all don’t mind explaining what score 8 is? And I didn’t know there were separate scores for mortgages? Are they usually higher or lower than fico?

---

Too many versions to type. Right here from MyFICO https://www.myfico.com/credit-education/credit-scores/fico-score-versions

Yes you can come out on top after BK. If you decide to reaffirm the house and car. You wont need any more loans. Just cards. Speak to a few lawyers and see what they have to offer you in your journey to get debt free. Good Luck!

[Harriet]

Thanks for the link.