cancel
Showing results for 
Search instead for 
Did you mean: 

Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure

Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

* I apologize in advance for the long post. I just want to include as much info as possible to accurately describe the situation.

 

Happy New Year everyone! I posted several weeks back that I was in the process of a Ch7 BK (filed 10/29/18) & that Capital One was burned in the process. Between my Venture & QS cards, I burned them for about $11k. However, I had stopped making payments in 2017 & the accts both charged-off on Nov 5th, 2017. Capital One was very quick to $0 out balances & mark accts as "Included in Ch7 BK Petition" after receiving notification of my filing. That has now changed to just "Included in Ch7 BK". I'm currently 3 wks until discharge. I assume that my bureaus will update to reflect "Discharged" at that time. I really don't know if the status changes to that or remains "Included in Ch7 BK" but CapOne seems to be doing everything in an accurate & timely manner.

 

My prior post explained that out of curiosity, I did the pre-qual on CapOne just to see if they laughed at me. To my surprise, both the unsecured platinum card & the QS1 card popped up as offers found. Not recommendations, but offers with specific APRs, not a range. I didn't know what to do. So, at that time, I came here seeking advice. I recv'd great feedback from others here NOT to apply for anything until my discharge was complete. Thanks to all who provided responses! I have followed the advice given but have continued to check the CapOne pre-qual about once a week. Everytime, it comes back with the same 2 cards mentioned above, with a stated APR.

 

Just to clarify what my post-discharge status will be: my only debt will be my mortgage which I reaffirmed on. I have a perfect payment history on my mortgage with 0 lates. I have 1 inquiry on each of the 3 bureau reports but they are from 2017 & will soon disappear. My car is paid off & there will be no other debts. Two months prior to filing BK, I opened checking & savings accts with NFCU, depositing $50 in each. I have never done business with NFCU before so they were in no way involved in my BK. Based on info I've read here, my plan was to begin my rebuild process by obtaining a secured CC with NFCU.

 

As my discharge nears, I have 2 additional questions that I would appreciate hearing anyone's feedback on. Before I apply for ANYTHING, I plan to await my discharge papers & make sure that all 3 bureaus reflect completely accurate info.

 

Question #1 - My property taxes & homeowner's insurance are included in my house pmt & are paid through escrow. Both increased in 2018, leaving an escrow shortage. I can either deposit money into my escrow acct to offset that shortage or do nothing & my house pmt will increase for the remainder of 2019. If I pay the escrow shortage, my house pmt will not increase &, it being my only debt, my total DTI will be 26.7%. If I don't pay the escrow shortage & use that cash for a secured CC at NFCU, my house pmt will increase & so will my DTI to 28.5%. If you were me, which would you do?

 

Question #2 - Taking all of the above into consideration, & since there appear to be offers on the table to let me back in at CapOne, should I apply at CapOne 1st or get a NFCU secured CC 1st & let it age a few months? I have no interest in the QS1 card so I would apply for the CapOne platinum card. Maybe if I did both, within the same week, the Age of Accts would not take another hit later.

 

I just want to make sure that I choose the right "path to rebuilding" & would sincerely appreciate any advice or suggestions. Thanks all!!!

6 REPLIES 6
Valued Contributor

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

Congrats


If I was you I would pay the shortage

And accept the Capital one offer
In 6 months apply for NFCU






Family Member made me an AU on: 2008 Sears MC $2,001, 2016 SEARS Store Card $2,001, 2011 Synchrony Home $5,500 , 2003 FNBO Visa $9,900, 2008 Macys Amex $1900, 2008 Kohls $2,000, 2008 JC Penny $4,500, 2016 TJX Mastercard $1,500, 2019 SDFCU PowerCash Visa $10,000, 2018 AAdvantage Aviator MC $5,600, 2018 HSN $4,500, and 2016 Local Credit Union Visa $5,000. Waiting on them to all report over the next month... Only Kohls is reporting so far... WITH AGE. They use AZEO method.

Member of:
Andrews FCU (Share), PENFED CU (Checking/Share), SDFCU (Share), Alliant CU (Checking/Share), NASA FCU (Share), NWFCU (Checking/Share), Ally Bank (Checking/Savings), BofA (Checking/Share), Navigant CU (Share), Greenwood CU (Share), Elements Financial CU (Share), Ocean State CU (Share), SDFCU (Share), Wells Fargo (Checking), RI Credit Union (Share), CashApp, PayPal Premier (for free direct deposit access with cash card), Paypal Business - Grandfathered 1.5% Cash Back on Biz Debit), Apple Pay Cash, and Venmo.

I WANT to join: Hanscom FCU (For the 2 day early direct deposit).


Burned:
DCU, NFCU, Comenity, Synchrony, Barclays, Discover, Amex, Webbank (Avant), Santander, Citi (Shell), DSNB (Macys), TDRCS (Target+Nordstrom), Capital One (Personal & Business, Kohls, and GM), CreditFirst(Firestone)
Message 2 of 7

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

Thank you @MyDataMyChoice. I appreciate the feedback. I would say that's the way I was leaning, but I keep re-thinking/over-thinking the issue. Thus, I'm here. I'm hoping that if I do as you suggested that NFCU would see my "potential" new history with CapOne & offer me an unsecured CC when I eventually apply with them. Thanks again!!!

Message 3 of 7
Community Leader
Super Contributor

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

I would agree with the above. Do both.

My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 4 of 7

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

@pizza1 - Thanks for your feedback as well. I agree that my best "plan of action" is prob to pay the escrow shortage (keeping my house pmt from increasing), see if the pre-qual from CapOne turns out to be a solid offer & then letting that acct report for a few months before applying at NFCU. However, I've read here & "heard" that NFCU is tightening lending requirements on unsecured credit to min of 1 yr post-BK discharge. If that's correct, people who are obtaining secured CCs through NFCU are actually graduating & becoming unsecured card holders faster than those who apply directly for an unsecured card. Ultimately, I'd prefer not to have a secured CC at all. But if it will speed up my "unsecured credit relationship" with NFCU, I may end up doing all 3: Pay escrow shortage, app the pre-qual @ CapOne & app a secured CC at NFCU. Still overthinking...a bad habit of mine. Again, thanks for your input!!!

Message 5 of 7
Contributor

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...

I personally can only comment on your second question as I do not have a house mortage yet.

 

Question 2: (answer) If it was me, I would apply for NFCU secured card card first since it is not a credit check on approval, and will not add to your hard inquires.

Plus its very easy to increase your secured limit with them up to $50k if needed and can graduate. Hope this helps. Smiley Happy




Started from the bottom now I'm here. Smiley Happy
Message 6 of 7
Valued Contributor

Re: Seeking Feedback Regarding My Ch7 Post-Discharge Credit Rebuild...


@Fx6cowboy wrote:

I personally can only comment on your second question as I do not have a house mortage yet.

 

Question 2: (answer) If it was me, I would apply for NFCU secured card card first since it is not a credit check on approval, and will not add to your hard inquires.

Plus its very easy to increase your secured limit with them up to $50k if needed and can graduate. Hope this helps. Smiley Happy


I would say this is unlikely.  Their secured card is not a guarantee and people have been denied for it due to their credit history.  

 FICO 8
Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.