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Starting my rebuild... **Updated as a reply 5/13/2019**

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Anonymous
Not applicable

Starting my rebuild... **Updated as a reply 5/13/2019**

Filed: Aug 13, 2018
341 Meeting: Sept 12, 2018
Oct 12, 2018 FICO Score 8: Experian 511
FICO Score 8 as of 11/1/2018:
Experian 519 Equifax 587 TU 530
Discharged 11/14/18
FICO Score 8 as of 11/17/2018:
Experian: 525 Equifax: 587 TU 530

I plan on trying to follow the BK7 to 700 in 24 months plan as close as possible!!!

I did burn Credit One in BK so I wasn’t able to get that card. But yesterday, I prequalified for Indigo and applied. I was approved with a $300 limit. I have not had a HP hit any of my credit reports yet, so that is good!!! Hopefully it’s not a delayed hit!

Since I already have 2 student loans and my BK payment to my lawyer appearing on my CR, I am thinking I shouldn’t apply for a credit builder loan.
But what should my next step be?
I have yet to prequalify for Discover IT even though they were not burned in BK (I’ve never had a Discover Card), and Capital One was IIB for ~$900.
Any advice is welcome, but as stated above, I would like to follow the plan as closely as possible!
Thanks in advance!!!

Message 1 of 21
20 REPLIES 20
Medic981
Valued Contributor

Re: Starting my rebuild...

Ultimately, what a person needs to improve their FICO scores and build credit are three open credit cards (secured or unsecured) in good standing and one open installment loan in good standing such as a car, home, student, personal, share secured, or credit building loan. This combination is what the myFICO score theorists here have determined is what you need for optimal credit building and FICO score. You can have more CCs and more installment loans, however, this will not increase your FICO scores.

IMO, Discover it Secured is one of the best-secured CCs for poor credit, bad credit, and no credit applicants—and one of the best gas CCs you can get with bad credit. Disco offers 2% cash back at restaurants and gas stations (one up to $1,000 in combined purchases each quarter) and 1% cash back on other purchases. You’ll need an up-front security deposit of at least $200 to apply for the Discover it Secured Card.

Capital One Secured CC requires a refundable security deposit of $49, $99 or $200 based on your creditworthiness. Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line. Get access to a higher credit line after making your first 5 monthly payments on time.

Bank of America's BankAmericard Secured CC is designed to help establish, strengthen or rebuild credit for an annual fee of $39. A minimum refundable security deposit of $300 is required to open this account. Your maximum credit limit will be determined by the amount of the security deposit you provide, your income and your ability to pay the credit line established. If you provide a deposit that exceeds the calculated maximum amount based on your ability to pay, a will be returned to you for the difference. BoA periodically reviews your account and, based on your overall credit history (including your account with us and other credit cards and loans), you may qualify to have your security deposit returned. Not all customers will qualify.

An installment loan will have its greatest impact on your FICO score when the amount owed is at 8.9% or less of the original amount owed which is usually in the final months before the loan is paid in full. If you don't have an installment loan you can check into Self Lender or a Share Secured Loan at a Credit Union.

Keep in mind, building credit is a marathon, not a sprint. It involves demonstrating to a potential creditor that you can handle credit responsibly. If you have open, active credit accounts that are being paid on time and pay all of your bills on time every time, apply for credit only when you actually need it and use credit cards sparingly maintaining low credit utilization, then you’re going to earn and maintain great credit scores. It would be impossible for you not to do so. This is the fastest way you can build good, solid credit.







Your FICO credit scores are not just numbers, it’s a skill.
Message 2 of 21
Anonymous
Not applicable

Re: Starting my rebuild...

***UPDATE***

 

@2 days post discharge I prequalified for an Indigo Unsecured CC w/ a $300 limit for which I applied and am awaiting my card to arrive in the mail.

 

@5 days post discharge I enrolled in my FICO Ultimate 3B+

My scores are:  EX 525. TU 542. EQ 587

 

@7 days post discharge I was FINALLY prequalified for a Secured Discover IT CC for which I will be making my secured deposit on Monday. (I have wanted this card for so long!)

 

@8 days post discharge

My FICO scores are:  EX 566 TU 542. EQ 587

 

I still have not had an alert of a HP for the Indigo card yet...

 

Going to garden these 2 for a couple of months and apply for 1 more CC after the new year. Maybe by then Capital One will be willing to let me back in since they were IIB for ~$900.

Message 3 of 21
Anonymous
Not applicable

Re: Starting my rebuild...

***UPDATE***

 

@2 days post discharge I prequalified for an Indigo Unsecured CC w/ a $300 limit for which I applied and am awaiting my card to arrive in the mail.

 

@5 days post discharge I enrolled in my FICO Ultimate 3B+

My scores are:  EX 525. TU 542. EQ 587

 

@7 days post discharge I was FINALLY prequalified for a Secured Discover IT CC for which I will be making my secured deposit on Monday. (I have wanted this card for so long!)

 

@8 days post discharge

My FICO scores are:  EX 566 TU 542. EQ 587

 

@17 days post discharge 

My FICO scores are:  EX 566 TU 546  EQ 602

Made my Discover IT security deposit of $500 on Monday 11/26/19...now just waiting for it to be delivered!  Never got a HP for the Indigo Card...woo hoo!  Scores are going up...this is such a relief!  

 

I’ve tried playing around with the shopping cart trick at VS, but either I am not doing it right, it doesn’t work on the iPad or I still don’t qualify!  Either way, I’m okay.  Really don’t need it! It was more to boost my ego! 😂 

Message 4 of 21
FireMedic1
Community Leader
Mega Contributor

Re: Starting my rebuild...

Congrats. SCT is basically a HP now. Let the cards age. More is not better. Time is your best friend. Spread apps out at least 6 months. Slow and steady wins the race. GL!


Message 5 of 21
Anonymous
Not applicable

Re: Starting my rebuild... **Updated as a reply 12/1/18**

Is your DiscoverIT a secured?

Message 6 of 21
gorgon
Established Contributor

Re: Starting my rebuild...


@Anonymous wrote:

 

I still have not had an alert of a HP for the Indigo card yet..


No need to worry, you won't see one. They don't hard pull your report.

Message 7 of 21
Anonymous
Not applicable

Re: Starting my rebuild... **Updated as a reply 12/1/18**

Yes,  secured with a $500 limit for now...planning to add more (after their 30 day waiting period).

Message 8 of 21
Anonymous
Not applicable

Re: Starting my rebuild... **Updated as a reply 12/13/18**

***UPDATE***

@2 days post discharge I prequalified for an Indigo Unsecured CC w/ a $300 limit for which I applied and am awaiting my card to arrive in the mail.

@5 days post discharge I enrolled in my FICO Ultimate 3B+
My scores are: EX 525. TU 542. EQ 587

@7 days post discharge I was FINALLY prequalified for a Secured Discover IT CC for which I will be making my secured deposit on Monday. (I have wanted this card for so long!)

@8 days post discharge
My FICO scores are: EX 566 TU 542. EQ 587

@17 days post discharge
My FICO scores are: EX 566 TU 546 EQ 602

@29 days post discharge
My FICO scores are: EX 599 TU 561 EQ 602
My Indigo Card now appears on my CR so my scores went up. Discover has is still not showing as a new account as of yet. Fingers crossed that when it shows up, my scores will go up yet again!!!

Happy Holidays to everyone. Will post again in a couple of weeks with my new score updates or if anything happens in between!!! 🤗
Message 9 of 21
Nova5041
Frequent Contributor

Re: Starting my rebuild... **Updated as a reply 12/13/18**

Congrats on starting your rebuild. Yeah discover is a great card to have unfortunately I burned them so I have to wait a few years to get back in. Like everyone says, we just have to play the waiting game.😁


BK 7 Discharged: 5/30/2018
Fico Scores after Discharge: Experian-552 TransUnion- 490 Equifax- 571
Message 10 of 21
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