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Stuck at 640 with 2 months to 2 years

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Maria80386
Established Member

Stuck at 640 with 2 months to 2 years

Filed 4/2018, Discharged 9/2019

Tried following the Rebuild thread. Got 4 cards: Discover, Cap 1, NFCU, and Paypal. Paypal has 12k combined limit, Cap - is up to 5k, Navy & Discover are stubborn at $2500 each. All have 20+ % interest rates. 

I do the all zero except one, never let the one exceed 8% balance. 

My inquiries are down to 1 that should fall off next month. 


My student loans are happily reporting, in deferred status. 

I have no auto loan, no credit builder loan, no mortgage. 

3 late payments from the BK plus the BK is reported and listed as the major factor in why my score remains sub 650. 

Any ideas on what to try next for lower interest rates and/of the big goal of buying a home, thus a decently priced mortgage in 2 years?

 

I'm assuming raising the credit score is a primary factor. I'm saving for the down payment which I hope to be at 20% plus closing costs. 

Message 1 of 10
9 REPLIES 9
Caliboy97
Contributor

Re: Stuck at 640 with 2 months to 2 years

Hi, 

 

I will go off my experience. I'm currently a little under 10 months post discharge and and all scores hover around 670. 

i have 6 revolving credit cards about 17K credit at 4% usage, two builder loans, and about to have a new auto loan on record with old one falling off from February. 

I decided to take the more aggressive route then most people in the rebuild rather take a decent amount of inquires to get the lines of credit I have.

Bankruptcy Discharge 9/21/2020
Starting Scores

May Update (Moving)

Slow and Steady Rebuild. Around 15K in revolving credit at 2% and 45K Auto Loan! Hoping to start upping those limits over time.
Capital one Platinum and Quicksilver | Kia Financial 49K auto loan | Navy Fed Secure Card | OpenSky Secure Card | Schools First FCU Card | Grain account | KikOff Loan and credit account | Student Loans Perfect history 16K left
Message 2 of 10
Horseshoez
Senior Contributor

Re: Stuck at 640 with 2 months to 2 years

@Maria80386, I'm thinking the first thing you will want to do is to open an SSL from the likes of PenFed or Navy Federal; open the SSL, pay it down to under 9%, and watch your scores climb.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 3 of 10
dragontears
Senior Contributor

Re: Stuck at 640 with 2 months to 2 years


@Horseshoez wrote:

@Maria80386, I'm thinking the first thing you will want to do is to open an SSL from the likes of PenFed or Navy Federal; open the SSL, pay it down to under 9%, and watch your scores climb.


The OP has open student loans, it is unlikely that a SSL will help their FICO8 scores and will do nothing to help their mortgage scores. 

Message 4 of 10
Horseshoez
Senior Contributor

Re: Stuck at 640 with 2 months to 2 years


@dragontears wrote:

@Horseshoez wrote:

@Maria80386, I'm thinking the first thing you will want to do is to open an SSL from the likes of PenFed or Navy Federal; open the SSL, pay it down to under 9%, and watch your scores climb.


The OP has open student loans, it is unlikely that a SSL will help their FICO8 scores and will do nothing to help their mortgage scores. 


Thanks, I missed that little detail.  Agreed, no need for an SSL.

Chapter 13:

  • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank (now Bank of Southern California)
  • Filed: 26-Feb-2015
  • MoC: 01-Mar-2015
  • 1st Payment (posted): 23-Mar-2015
  • Last Payment (posted): 07-Feb-2020
  • Discharged: 04-Mar-2020
  • Closed: 23-Jun-2020

 

I categorically refuse to do AZEO!

In the proverbial sock drawer:
Message 5 of 10
FireMedic1
Community Leader
Mega Contributor

Re: Stuck at 640 with 2 months to 2 years

Do you have any CO balances from the past that was included in your BK filing? CO's are right under a BK in points lost. Any baddies before BK remain and do the same damage. As in lates like 90 or 120 days, charge offs, repos. BK removes the debt but not the dings that baddies do.


Message 6 of 10
Maria80386
Established Member

Re: Stuck at 640 with 2 months to 2 years

Thanks guys!

 

The student loans are current, but I'm unlikely to ever pay them off. They double in size every 6 years. 

Will they prevent traditional mortgages?

 

I have 3 30 day late payments from the month I filed BK. They are 3+ years old now. No COs, repos, or other nasties. 

 

Thanks!

Message 7 of 10
Guyatthebeach
Valued Contributor

Re: Stuck at 640 with 2 months to 2 years

Maria80386,

 

Have you checked all your CR's to make sure everything is reporting correctly? Are there any CO's?  

Are you making any payments on your student loans? If you aren't you need to either start to use some positive payment history or open a SSL.

 

Guyatthebeach

 

Message 8 of 10
grassfeeder
Frequent Contributor

Re: Stuck at 640 with 2 months to 2 years


@Maria80386 wrote:

Thanks guys!

 

The student loans are current, but I'm unlikely to ever pay them off. They double in size every 6 years. 

Will they prevent traditional mortgages?

 

I have 3 30 day late payments from the month I filed BK. They are 3+ years old now. No COs, repos, or other nasties. 

 

Thanks!


3 lates since your BK is a killer.  You can not build with lates after BK.  Also, id get that balance below 8% as well.

 

Fico 8 Scores 5/1/22 :
799 EQ | 793 TU | 809 EX
Message 9 of 10
twono
Frequent Contributor

Re: Stuck at 640 with 2 months to 2 years


@grassfeeder wrote:

@Maria80386 wrote:

Thanks guys!

 

The student loans are current, but I'm unlikely to ever pay them off. They double in size every 6 years. 

Will they prevent traditional mortgages?

 

I have 3 30 day late payments from the month I filed BK. They are 3+ years old now. No COs, repos, or other nasties. 

 

Thanks!


3 lates since your BK is a killer.  You can not build with lates after BK.  Also, id get that balance below 8% as well.

 


The OP had 3 lates in the month she filed, not POST discharge,  which is quite common because the attorney most likely told her to stop paying credit accts immediately.

 

 

Message 10 of 10
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